Seller Financing Available
Absentee-Owned, 55 Year-Old Comm. Niche Refrigeration Service Biz.
2014 Cash Flow Expect. $650K on $2.4MM. $720K in Assets Debt Free
LOCATION: SOUTH DENVER, 55 Year-Old Commercial Niche Refrigeration Service Business Available in South Metro Denver (DTC). Cash flows 625K - 650K on 2.2MM. We service everything, including the "kitchen sink".
$1,500,000 down and another $250,000 over time.
2014 Revenues Approx. 2,200,000
with Cash Flow of $620K-$650K.
2013 Revenues were 2,348,000
With Cash Flow of 535,600.
2012 Revenues were 2,277,000
With Cash Flow of 450K (approx.)
100% Absentee - Owned. Current Owner lives in the Rocky Mountains several hours away and ONLY goes to the office/shop location 3 time a year.
The sale includes 700,000 in accounts receivable, current inventory, equipment, and well-stocked vans and trucks.
We Service and Install for the entire Commercial and Governmental Hospitality Industry throughout Colorado: walk-in coolers, every form of refrigeration, freezers, ice machines, and cooking equipment, broilers, fryers, ranges, ovens, coffer brewers and grinders, coffee, tea, soda machines, and all other large and small-scale commercial kitchen equipment, such as prep tables, ice bins, under-counter, specialty items, and walk-in fridge/freezers, etc. We are so proud to say that our Certified Technicians are the "can do it" people. We can do anything for almost any company or governmental kitchen-related need.
As stated above, the business has been 100% absentee-owned and has been run by a long-standing manager for many years. An on-site operating owner can make immediate changes to improve the growth sales and sharply improve much of the waste and outdated systems and inefficiencies that have limited our profit margins.
We have the finest reputation in the State of Colorado for servicing the equipment stated above. We have a BBB A+ rating with NOT 1 COMPLAINT ON OUR RECORD. LET ME WRITE THAT AGAIN, NOT 1 BBB COMPLAINT. Thousands and thousands of jobs spanning 55 years, and not 1 complaint that we have NOT fixed. That says it all. We are so proud.
Throughout our 55 year history we have serviced well over 15,000 to 20,000 commercial refrigeration units and various commercial cooking units. , We service the entire state of Colorado however 90% of our service work occurs in the Denver metro area.
To this day we provide steady and ongoing service to hundreds and hundreds of large national companies that have a restaurant/kitchen-related presence in Colorado. For over 55 years now we have held long-standing relationships with some of the largest National restaurant chains, hotel chains, nursing homes, hospitals, police stations, prisons/jails, City and county buildings, federal buildings, and almost every type of work place where you would have an commercial or industrial kitchen. We are one of the top three service companies in the Denver metro area with the most experienced technicians in the industry.
Historically this business has NOT sold products and equipment. We have strictly provided service for refrigeration and cooking equipment. For the few competitors that we do have, they service and in some cases sell equipment. However, we strongly feel that the service side of the industry is more profitable than the thin margins that other companies make on selling these refrigeration and cookware units. This is why we have stayed in the service side and going forward we feel we can substantially grow the business over the next 2 to 3 years with an on-site owner who's interested in taking advantage of the explosive growth in Denver on the restaurant and hospitality industry.
Our Long-Standing Customers Include: Applebee’s, Chili’s, Red Robin, many national convenient stores, Smash Burger, Arby’s multiple national and regional grocery store locations, Casinos, and many hotel chains such as Hilton, Marriot and Westin. The owner stated to me many times, "for 55 years, anywhere there is a sink, stove, fryer, broiler, freezer, ice machine, coffee, tea or soda dispenser, you have moving parts. These machines and equipment don't last forever. They are heavily used, in most cases 10-18 hours/day or even 24 hours/day for refrigeration and freezers. They have break down and need repair either onsite for a quick fix, or a full extensive overhaul in our repair shop. These business owners and government managers can't pick up the phone and call a traditional appliance repair man from the phone book. This is where we come in. These customers demand nothing short of the fastest fix, from the most competent technician, and they always want it fixed or swapped out "yesterday". And because these machines and equipment mean MONEY (or the loss of it) to the operator, they WILL pay for the best and fastest service. THAT is why we made the highest margins (profits) in the industry. Service is clearly the most profitable side of this industry.
Over the last five years we have set many of our long-standing customers up on annual maintenance programs/contracts. These contracts are an excellent source of steady and predictable revenue to our company, and are extremely profitable. What we have learned in the last 3 to 4 years is that our steady customers who have multiple commercial kitchen locations such large national restaurant chains and multiple hotel locations, etc., really appreciate knowing that they can pay one annual fee for us to provide preventative service. Once a customer starts a monthly or quarterly maintenance program, nearly all renew their contracts!! Therefore, we can assume that they find great value in it, and to us, it is again, profitable and predictable income.
Our employees and field technicians are the best in the industry. As they say… “You are as good as your employees”. We are without a doubt the classiest and most professional refrigeration and cooking equipment Service Company that we know of. All of our technicians are the "face of the company” and therefore, are nothing short of a class act. They are well-spoken, well-dressed, extremely polite, honest, and hard-working. We have not received one complaint from a customer in the past that we have not resolved professionally. In fact we have an A rating with the Better Business Bureau with absolutely zero complaints in our entire history. This says it all....
We DO have a major weakness that is costing us hundreds of thousands a year in lost revenue and overhead waste. We are running our office staff and field technician communications like we are in the 1980s with paper (in the office and field). This is duplication and wasteful, which bogs down billable time and getting on to the next job. We can make at least 1 additional service calls per day if the techs in the field (who are worth between 75-110/hr.) can adopt more advanced communications and systems used today in the service industry.
In recent months the owner has reviewed the day-to-day operations and all the steps needed to complete and bill jobs. The company has been operating the same way for the last 10 or 20 years with a great number of inefficient and wasteful steps that he feels could be illuminated and would result in dramatic time and cost savings. Automating these internal office and field tech. steps can result in 1 additional hour of actual work time for each technician per day. Also, we can reduce overhead/office staff, and the cost associated with that office staff to manage the jobs in the field.
We need to outfit all of the office workers with advanced software systems that communicate with field technicians who would operate on iPads, instead of a clipboard and pencil. Details on this is beyond the scope of this marketing piece, however the seller strongly feels that at least 150,000-200,000 of additional cash flow could be produced per year with the same level of staff and field workers if we could simply upgrade an update our communication and operational systems. Also, we often get weird looks from customers when a technicians spends 10 minutes writing out a receipt or job order, then find the manager, then get it signed, then bring it back to the office to have another person take that paper to the next step in the process. You get the idea.
Extensive parts inventory and highly valuable fully functional fleet of trucks and vans: as stated above, the buyer will receive at the closing over 700,000 of accounts receivable, current inventory, parts and vehicles. Our technicians in the field and service techs in the shop, have absolutely every imaginable part that will be needed for most commercial refrigeration or cooking appliances. They have everything at their fingertips which ensures that there's minimum waste in time ordering parts and waiting for them to come. This also ensures that the customer doesn't have to wait one day longer than they absolutely need to have their machine returned in operation.
We are recession proof: all business owners that have a commercial kitchen need some level of service or new product installed on a periodic basis. These large and expensive commercial machines and equipment that we service get an enormous amount of day-to-day use. This includes everything from a soda fountain machine at a 7-Eleven, to some of the largest refrigeration equipment, and state governments, and everything in between. We service and install the biggest and smallest units. These machines and operating equipment are moneymakers for our customers. If these units are not operating optimally for our customers or are completely on the fritz, then this will mean serious money forfeited because they can't service their customers and earn money until it is fixed. Therefore, these business operations will pay to have a company technician come out immediately and fix the unit on site or pick it up and replace it with another that day to ensure minimal disruption to the business government location. Therefore, we ARE to a large extent recession proof.
As stated, service side (vs. the new sales side) of our industry is fairly recession proof and highly profitable in good times and bad times. The units that we service and install often cost thousands of dollars or even 20,000-75,000 or more for new equipment. Therefore during an economic downturn business owners, big and small, are less willing to simply buy a brand new refrigerator, freezer, soda machine, or stove simply because the machine is on its last legs or is broken down. During the economic downturn of the last five years or so we have seen the service-side of the industry thrive, because our customers are less willing to shell out 10,000 or so for a new unit, and are often far more willing to squeeze another one or two years at of their old equipment by having our service team come out in the field or haul the equipment back to our fully-functional shop.
Please Email today for the comprehensive sales packet, including 5 years of financials and tax returns and a 45 minute long video detailing the shop and full interview with the owner. We have a great sales packet! Or please call 303-382-1900.
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