26 Yr Old Full Range Plumbing & HVAC Co, A+ BBB, Loyal Employees

Golden, CO (Jefferson County)

Seller Financing Available
26 Yr Old Full Range Plumbing & HVAC Co, A+ BBB, Loyal Employees
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Asking Price: $460,000

Cash Flow: $233,000

Gross Revenue: $1,187,000

EBITDA: $233,000

FF&E: $34,000

Inventory: $11,000

Rent: $3,136 /Month

Established: 1993

26 Yr Old Full Range Plumbing & HVAC Co, A+ BBB, Loyal Employees

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Business Description

Great Reputation for Safety, Quality & Reliability, Good Growth Potential

As of 2/26/2019 the Sales Price has been Lowered to 460K with earnings of 233K. This makes the price only 2.25 times the earnings. They have been taking more time off over the last year and decided to Hire a Manager that has a Masters License and can work in the field. He starts around Mid-March. This means that the buyer can be Full Time, Part Time, or Absentee.

2018’s earnings were 201,168 from 1,187,165 in revenues. The two year average is 233K in earnings. One of the owners spent most of September and the other some of September in North Carolina because her Brother’s house was flooded. This had an impact on bidding especially in September which had a small impact that can’t be put into an accurate one time add back. 2017’s earnings were 264,137 from revenues of 1,283,921. The owners believe 2018 would have looked the same as 2017 except for the impact the September NC floods had. They have been profitable all 26 years including the 2008 to 2012 downturn. The seller is asking for 460K.

This company provides a full range of Plumbing and Heating services. They are also recognized as experts in Radiant in floor heating and tankless water heater systems which are part of a “hydronic heating system” popular in high end homes in Colorado. They provide maintenance and repairs also which helps with recurring revenues. This company provides both commercial and residential services for new construction or remodels. They have seven full time employees including two master plumbers whose licenses a new owner can use. They also have decided to hire a manager they like that they have interviewed that can take over the owners work or work in the field. This means that the new owner can be full time, part time, or absentee.

The buyer will get approximately 45K in current value hard assets made up of 34K in equipment and another 11K in inventory. The company has a great reputation with a long-standing and recurring customer base.

The owners are retirement age and will help the new owner transition the business for as long as they would like and are confident that it will be a smooth transition. The company, not the owners, has the BBB A+ rating, customers, and reputation. They will sign a non-compete and offer full indemnifications.

Location: West Metro Denver Area.

The sales price has just been lowered to 460K from 625K which includes all assets debt free. The seller will be keeping their cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. It is an S Corp so this can be either a stock or an asset sale.

Brief Overview and Deal Points:

They specialize in high end custom residential plumbing and hydronic radiant heat(watch the video in the link toward the top of this email). Their mix is mostly residential that is 20% service/maintenance, 40% Plumbing, and 40% Radiant heat which is mostly Hydronic in nature. Hydronic heat uses a boiler and heated water in tubes which provides a more efficient heating system that is quieter and more consistent. They also take regular service calls for plumbing and some HVAC. The company has grown historically based on their reputation and the growth of population and building in their market. They have a normal internet presence with some SEO and website but do not spend a lot on advertising. They have long term relationships with several builders and with a warranty company. The population of their entire market is mostly affluent and has and is expected to continue to grow at an impressive rate.

Growth and Expansion: A new owner can increase advertising, increase their service area, work harder than the current owners, add forced air, add fire suppression systems, and/or become solar experts. 90% of new custom larger homes in their area use hydronic radiant heat but most of the older homes can’t be retrofitted to this. Plus, the rest of their market uses forced air which they do not currently provide services for. A new owner could add a duct expert and easily add forced air as a service they provide. Fire suppression systems are now required for homes over 4,500 square feet in their market. Solar is becoming a big deal in Colorado with most of the homebuilding now offering it as an option. There is a very large opportunity in the solar industry to companies with their expertise.

Keep in mind that the add backs taken in the adjusted earnings spreadsheet are very conservative and don’t accurately show how much impact those 3 events had. There was no way to properly monetize each event. For example: The condominium repair they lost revenue and the earnings from those employees and their ability to bid new work while they were up there. I only added back the actual cost of labor and appliances not the lost opportunity which was substantial. This is great timing for a buyer to buy this business. Another consideration is that they take 6 to 8 weeks each year for vacation and he works 35 hours a week and her only 20 hours. A new owner can come in and work more hours to help grow this business.

They have a great reputation for safety, quality, and reliability. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) as proven by their low workman’s comp MOD rate. They have had no regulatory issues, no lawsuits, and no issues with the city, county, or municipality that they are in. They are also A+ rated with the Better Business Bureau.

The business has very loyal and long term employees. There are 7 full time employees and two owners. One owner only works 20 to 25 hours a week doing some administrative work. The employees are all hourly which keeps fixed costs in line with revenues. The employees are trustworthy, competent, and reliable. 2 employees were hired before 2015 and 2 before 2009. This company has a stable labor force.

The business is located near I-70 which gives them easy access to several high end Colorado Mountain communities, and West Metro Denver. The facility is 3,200 square feet with 2,400 square feet of warehouse and 800 square feet of office space. The current lease has ½ year left on it. The monthly rent is 2,700 plus CAM expenses of 450 per month.

They have a great reputation for safety, quality, and reliability. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) as proven by their low workman’s comp MOD rate. They have had no regulatory issues, no lawsuits, and no issues with the city, county, or municipality that they are in. They are also A+ rated with the Better Business Bureau.

Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s). Thank you for your interest.
Thank you.
Sincerely,

Jeff Chapman Eisnaugle
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jce@companybroker.com

This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
3,200
Lease Expiration:
N/A
Employees:
6
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The business is located near I-70 which gives them easy access to several high end Colorado Mountain communities, and West Metro Denver. The facility is 3,200 square feet with 2,400 square feet of warehouse and 800 square feet of office space. The current lease has ½ year left on it. The monthly rent is 2,700 plus CAM expenses of 450 per month.
Competition:
They specialize in high end custom residential plumbing and hydronic radiant heat(watch the video in the link toward the top of this email). Their mix is mostly residential that is 20% service/maintenance, 40% Plumbing, and 40% Radiant heat which is mostly Hydronic in nature. Hydronic heat uses a boiler and heated water in tubes which provides a more efficient heating system that is quieter and more consistent. They also take regular service calls for plumbing and some HVAC. The company has grown historically based on their reputation and the growth of population and building in their market. They have a normal internet presence with some SEO and website but do not spend a lot on advertising. They have long term relationships with several builders and with a warranty company. The population of their entire market is mostly affluent and has and is expected to continue to grow at an impressive rate.
Growth & Expansion:
Growth and Expansion: A new owner can increase advertising, increase their service area, work harder than the current owners, add forced air, add fire suppression systems, and/or become solar experts. 90% of new custom larger homes in their area use hydronic radiant heat but most of the older homes can’t be retrofitted to this. Plus, the rest of their market uses forced air which they do not currently provide services for. A new owner could add a duct expert and easily add forced air as a service they provide. Fire suppression systems are now required for homes over 4,500 square feet in their market. Solar is becoming a big deal in Colorado with most of the homebuilding now offering it as an option. There is a very large opportunity in the solar industry to companies with their expertise.
Financing:
15%
Support & Training:
The owners are retirement age and will help the new owner transition the business for as long as they would like and are confident that it will be a smooth transition. The company, not the owners, has the BBB A+ rating, customers, and reputation. They will sign a non-compete and offer full indemnifications.
Reason for Selling:
Retiring
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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