$2M Down gets $1.8M in Assets, CF is $1.15M on $3M in Sales, 30 Yr.

Denver, CO (Adams County)

Seller Financing Available
$2M Down gets $1.8M in Assets, CF is $1.15M on $3M in Sales, 30 Yr.
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Asking Price: $3,000,000

Cash Flow: $1,150,000

Gross Revenue: $3,000,000

EBITDA: $1,150,000

FF&E: $1,850,000

Inventory: $75,000

Real Estate: $1,800,000*

Established: 1989

*not included in asking price.

$2M Down gets $1.8M in Assets, CF is $1.15M on $3M in Sales, 30 Yr.

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Business Description

$2M Assets, CF is $1.15M on $3M in Sales, 30 Yr. Old Niche Duct/HVAC

$1.8M Assets, CF is $1.15M on $3M in Sales, 30 Yr. Old Niche Duct/HVAC. Location: North Denver.

2018 Cash Flow was $1,156,770 on sales of $2,976,115
2017 Cash Flow was $953,490 on sales of $2,830,406
2016 Cash Flow was $1,043,241 on sales of $3,018,305

30 Yr. Old Comm./Resid. HVAC & Air Duct Cleaning Service Business
Sales price $3,000,000, seller will carry up to $1,000,000 for a qualified buyer.

We are the largest Commercial and Residential HVAC & Air Duct Cleaning Service business in the entire 8-state rocky mtn. region. We are clearly the most profitable and have the finest state-of-the-art vacuum trucks and equipment in the US market.
(Since 1989)

The buyer gets over $1,825,000 in total assets debt free at the closing including: about $1,430,700 in hard assets, $50,000 in current inventory, about $225,000 in solid accounts receivables and $100,000 in cash left on the balance sheet. Again, the business transfers Completely Debt Free.

YOU MUST see the 45-minute video interview with the owner in the data room. Email me if you want the financials on this offering.

We have completed between 400,000 – 500,000 commercial and residential air duct and HVAC cleaning jobs for over 200,000 customers in 30 years. Some companies have a 5-star google review rating, BUT NOT WITH OVER 500 REVIEWS. (That means that over 99.7% of those 500 people had to give us 5-stars.) That says is all about our reputation and work quality!!!

We have over 200,000 individual customers and have completed between 400,000 – 500,000 commercial and residential air duct and HVAC cleaning jobs over 30 years. We are the largest of our kind in the entire 8-state rocky mountain region with the state of the art, cutting edge equipment that no one we know of has.

99% of over 1,000 Google reviews are 5-star. Have you ever heard of a company with 98% 5-star reviews out of 1,000 customers.

Finest Reputation: We have the finest reputation and strongest working relationship with all contractors and customers. In fact, we have a BBB rating of “A+” and have NEVER has 1 complaint filed.

The real estate is being sold for another $1,800,000, however, the seller paid $1,350,000, more than 20 years ago and has done much construction and many upgrades to the property and building. In short, the real estate is worth much more than the $1,800,000 sales price that he seeks for it.

The seller will stay on for 3-4 months (or however long the buyer requires within reason) to ensure a smooth and orderly transfer of the entire company operations to the new owner and provide a solid blueprint and assistance for fast growth going forward.

Our Long-Standing Steady Customers Are: South Metro Fire District,Four Seasons Resorts, Vail Health Clubs and Resorts, Costco Wholesale, US Air Force Academy, Murphy and Company (Large Mechanical Contractor- Multiple projects) Liberty Media Corporation, Acuity Insurance Claims, Easter Owens Corp, ProCraft Mechanical ( Large Mechanical Contractor, multiple projects), University of Denver (Multiple buildings multiple projects), ( Multiple fires stations and public buildings, Master Magnetics Manufacturing, Littleton Academy, REI, Cherry Creek Country Club, Das Bog Coffee, Ryerson Electric. All these city municipalities: City of Colorado Springs, Englewood, Denver, Lakewood, Frisco, Wheatridge, Littleton, Aurora, Thornton, Fort Collins, Boulder Valley School District, Boulder Valley School District, over 30 Colorado counties, over 30 school districts, dozens of hospitals, Dish Network, RK Mechanical (Huge, Huge Mechanical Contractor, Multiple Projects), Rose Medical Center and Hospital, USAA, Safeway, Humane Society, THE EPA, and many Colorado air force bases. There are over 500 additional Commercial customers, and Thousands of Residential Customers in just the last 2 years.

Our customized cutting edge with state-of-the-art equipment is our hook and key to everything: So, the question is how can we say were the best company in the region for commercial and residential area duck and HVAC cleaning? Who’s to say who is the best company or has the best equipment? It’s this simple, we have 15 operating vehicles that simply have the best working equipment in the industry with the strongest sucking power. Cleaning and vacuuming are all about the power of the equipment that is used to suck the dirt and debris out of these our customers’ buildings. It would follow reason that whosever equipment has the strongest sucking and vacuum power with the greatest reach can do the most comprehensive and thorough job of cleaning… All of our competitors have “off-the-shelf trucks to do their fieldwork. Not us, for more than 20 years now the company has been able to customize and build the finest trucks and field equipment in the industry, period. This is our hook, and this is everything. The customers shown above know the difference after years of comparing us to the competition, we get the job done better than anyone and they’re willing to pay a premium for it. The level of cleaning and sanitary conditions that our equipment can achieve is critical, especially to some of the most sterile environments such as hospitals and medical centers. Even in the case of the Ritz Carlton hotel let me have a $50,000 HVAC unit that is hard to reach on the roof of the building as well as half a mile of the units that snake through a fancy hotel. Customers like this and the ones mentioned above will pay a significant premium to achieve the highest level of cleanliness which is very clear in the profits you can see in our income statements that you can review in the data room. Nobody in our industry can get more than 33% “net cash flow” on their gross sales like we can. As you will see below there is a great opportunity to double the sales which would more than triple the cash flow because as your sales increases all you need is a few more trucks and a few more employees, all of the overhead is covered at the first $2-$3 million.
The seller will stay on for many years to come to keep the fleet on the cutting edge: The next question would be is how can the new owner be certain that the company will be able to keep up with keeping the fleet of trucks on the cutting edge with state-of-the-art equipment when the owner sells, especially if the owner has played a role in procuring this equipment and designing it? Simply put, although the seller wants to sell and spend more time at home, he very much desires to stay on as a consultant for many years to come to help design and keep the fleet growing for the new owner. The owner loves this aspect of the business and really enjoys buying and advancing the equipment. He just doesn’t care to manage the business in people any longer since he is ready to retire from this part of the business.

We have a good deal of steady recurring work. For instance, most-all commercial jobs range from $10,000 - $100,000 or more in revenue. But we have learned that sometimes getting companies or government entities to approve work “over $10,000” can be harder to get approval for, but under $10,000 companies have immediate budget discretion for. This being the case, we simply do many “phases” of a given project, each for say $9,900, therefore, a $100,000 project can be done over say 12 months of monthly service work. The approach opens up a ton of ‘recurring revenue’ work that would otherwise be difficult to get budgeted.

We Are Completely Recession Proof: You Have to Have Commercial HVAC and Ducts cleaned out at a certain frequency. We are in the “ounce of prevention is worth a pound of cure business”. If you don’t properly service these systems, they will clog up a breakdown or need to be replaced – it’s that simple.

We have no sales reps or any outbound marketing efforts, just radio and small internet marketing. It is the seller’s opinion that a wise and able person can come in here and double the revenue and triple the cash flow by hiring 1 salesperson in that can get out in the field and call on existing and new customers to bring in more work. During the past 30 years the work has “just come to us with no sales and marketing efforts”, says the owner. In fact, we have completed over 400,000-500,000 jobs in our history strictly through word-of-mouth and having the same customers call us back over and over without putting it out to bid. In fact, our website isn’t what it should be and we have no web-presence on social media at all. The point is that we have done very well in gaining trust and building a name without any professional branding etc. A business person could come in and professionally brand us to bring the company to the next level. Final point, about 90% of our sales is from just the Denver area, a new owner could grow the business swiftly by doing work outside of the 10-mile Denver radius, such as Fort Collins and Colorado Springs etc.

A New Owner Can Double the Sales in 2-3 Years, Latest update: The biggest asset being sold as part of this transaction is not the $1.8 million in real estate, nor the $250,000 in accounts receivable, nor the $1.5 million of equipment; it is not even the incredible brand that we hold today or the 1,000 5-star Google reviews… The biggest asset being sold here is worth millions and millions of dollars to the new owner and is actually an intangible asset. It is the simple fact that this company has a comprehensive database of over 68,000 documented commercial (and a small % of residential) customers that we have done work for in the past. (See customer list below.) However, it is critical to understand that at NO POINT in the past has the owner made any attempt to reach out to these existing customers through a phone call or email to get “more work” from them. Stated differently, the seller is emphatic that a new owner could hire a salesperson to do nothing but call these 68,000 documented happy and satisfied customers from the jobs completed in the past in an effort to get more work or set up some sort of annual service agreement.
We know that all our customers are happy because of surveys and that 100% of all Google reviews have been 5-star/A+. If 100% of the customers are more than satisfied with the work completed in the past a new owner can assume that by calling on this comprehensive database that they can drum up significant additional work by proactively reaching out to them. The seller has gone on record to state that he has not made any attempt to reach out to happy existing customers in the past. We have already made the point that we have the highest quality service and effectiveness for cleaning ducts and HVAC better than anybody in the industry. A new owner can hire 1-2 business development people to simply reach out to say 200 existing customers per week, and this would generate an enormous amount of additional work.

To summarize this point, the seller strongly feels that if a purchaser closed on the business in the 3-4 months of 2019, they could increase sales to $4M in 2019 and absolutely no less than $5 million in 2020. “This would be a layup because we have never called on this database or taking advantage of the great work we completed for these long-standing customers”, he insists. In summary, this is the biggest opportunity in the biggest asset being sold as part of this transaction. Further, the seller insists that he would not need any more equipment (trucks) to handle the additional sales, we would just push the existing equipment harder (use it more, and other shifts etc.)

Other Revenue Sources: In addition to being able to grow the core business of servicing and cleaning commercial and residential HVAC units and ductwork, there are a wide variety of highly profitable tangential services that the new owner can and should pursue immediately. For instance, there are tens of thousands of restaurants in a 10-mile radius of Denver all of which have a kitchen and all kitchens have hoods above the grill. By law these hoods, connecting ductwork and exhaust systems need to be cleaned at a certain frequency or else grease builds up and can cause a fire. Similarly, hospitals, manufacturing facilities that have hoods and exhaust systems need to be cleaned all the time by local code and other ordinances. We have never even approached this market and the work is extremely profitable, and the best part is that this work needs to be done at night when there are no customers or workers around. This allows our equipment to be used (for another shift) when it is normally dormant at night because it is used primarily in the day for our main business. As they say, “your equipment is not making money if it’s sitting in the shop “. The demand for this service is very high (recession proof) and as stated above our equipment is the best in the industry and has the strongest sucking and cleaning power, therefore, we would be able to charge a premium to get the toughest jobs done right where other companies can’t do nearly as good a job.
The company cash-flowed over $1,156,000 in 2018 and the owner has not lifted a finger to get out there and bring sales to the company. Again, we have never had a single salesperson. This strongly suggests that the new owner can get sales to grow swiftly with a sales rep to call on existing customers to get more work from companies that don’t currently use us.

The seller is emphatic that a new owner could “easily” double the sales and cash flow within 3-5 years by just taking our extensive long-standing customer list and asking to MonsterVac other facilities owned by these steady customers. It is an absolute “hay day” in the Front Range and the entire Rocky Mountain Region. YOU MUST SEE THE 45-MINUTE-LONG VIDEO DETAILING ALL THESE POINTS. IT IS IN THE DATAROOM ALONG WITH THE PAST 4 YEARS OF COMPANY FINANCIALS.

You Will Need Little Working Capital: Seller is leaving between $200,000 -$250,000 in accounts receivables and another 50,000 cash in the business for the buyer. The new owner will need little working capital to take over and grow the company starting day-1 simply because the seller is leaving much behind. Normally, when someone buys a company, they need to take out a $200,000 line of credit or have $200k-$300k cash of their own available to grow the company right out of the gate. Not the case here because, again, the seller is leaving this level of working capital and NO DEBTS at all.

There Are No Negative Disclosable Items: The company is in excellent standing. There are “no ghosts in this closet”! As stated above, after completing over 400,000 jobs we have NOT had 1 complaint for unsatisfactory work that we did not immediately fix on our watch and our dime, we have never failed on a job or delayed a restaurant’s construction opening. We have had no legal battles, lawsuits, or pending violations of any sort. We have never had an OSHA violation. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. IN FACT, THE WORKMAN’S COMP “MOD RATE” IS .8, which means the liability insurance premium enjoys an annual 20% discount because of the excellent safety and injury history. We take worker safety very seriously and the seller is 100% committed to sign for Reps and Warranties that provides for a solid protection of the buyer in these areas.

Diversity of Customers: We have no “customer concentration” problems, meaning not 1 of our customers is greater than 5% of our gross sales. A quick look at our accounts receivables report in the above data room show that we don’t have “too many eggs in 1 basket”. This ensures we are never vulnerable to losing a lot of sales because a given customer slowed down. In short, we have dozens and dozens of different companies who love working with us and count on the work we do. There are many other sources of revenue and diversified customers in our mix. Finally, there is no “seasonality” or substantial monthly sales or cash flow swings.

The Ownership Transition: In terms of this business transaction, we envisioned that the new owner would create a new role of sales and business development, which we have never had. We have everything in place to grow to $10M+, we just need more sales in the existing market with expansion with more recurring revenue and long-standing Contracts. As stated above, the seller will continue to work with the new owner for many years to build new trucks and equipment to keep the fleet on the cutting-edge/state-of-the-art.

No Technical Experience Needed: The new owner will require no specific experience since our workers know how to run themselves in every aspect of the operation. However, it is encouraged that the new owner should take the time to be a full-time, hands-on manager/operator (at least for the first year to learn the business). He/she should have good management skills. The seller wants to find someone to take the business to the next level.

Our Great Employees: We have 26 great employees to ensure the finest quality work. We have the best office staff and shop techs in the business and the average tenure 8-12 years. In short, we never lose quality workers because they are paid above market wages and they love what they do, it’s that simple.

Reason for Sale: The seller wants to retire. He has taken the company as far as he can and wants to step aside and let more of a “business development/sales/marketing” grow it going forward. He has done a great job positioning the company with 100’s, even 1,000’s of steady customers for a new owner to come in and take this to the next level by leveraging what he has started.

Licenses and Permits: The new owner needs no specific licensing or permits in Colorado; the company has all licenses needed to operate going forward. The new owner would be required to maintain existing city licenses.

YOU MUST see the 45 minute video interview with the owner in the data room. Email me if you want the financials on this offering.

Sincerely,

Paul Olsen
Business Sales | Valuations | Mergers and Acquisitions
We Sell Businesses Quickly and Quietly and for Top Dollar.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Not included in asking price
Building SF:
18,000
Employees:
26
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Financing:
Just 2,000,000 down at closing.
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Paul Olsen

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Paul Olsen

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