PRICE DROP! 34 Yr Old CO Res/Comm HVAC Co, Big Work In Progress

Lyons, CO (Larimer County)

Seller Financing Available
PRICE DROP! 34 Yr Old CO Res/Comm HVAC Co, Big Work In Progress
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Asking Price: Get Financing: $435,000

Cash Flow: $225,800

Gross Revenue: $1,352,000

EBITDA: $225,800

FF&E: $35,000

Inventory: $30,000*

Real Estate: $115,000*

Established: 1984

*not included in asking price.

PRICE DROP! 34 Yr Old CO Res/Comm HVAC Co, Big Work In Progress

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Business Description

Big Comm Jobs, Large Custom Homes, Backflow Prevention, Refrig Install & Service

The trailing 12 months earnings through May 31 2018 were 225,838 on revenues of 1,352,684. The earnings for 2017 were 171,878 from revenues of 1,210,000.

The Sales Price was just Lowered to Only 2 times the Earnings. The New Sales Price is $435K plus 75% of his cost of his inventory.

They do HVAC, Plumbing, Backflow Prevention, and Refrigeration installs and service for Commercial and Residential. They do remodels and new construction. They are one of the biggest in their market in Commercial work including Restaurants, Hotels, and big multi-unit housing. They also do large custom homes and regular service calls 24/7.

The buyer will get approximately 65K in hard assets made up of 19.5K in Tools and equipment, 16K in vehicles, and 30K in inventory.

The company has a great reputation with a long-standing customer base that send them business in a recurring way. This includes Developers, General Contractors, Business Owners both large and small, etc. He helps to manage new work and customer relations and does not do any of the work himself. He turns down work every day and is already booked through year end. He doesn’t want to hire more people because he wants to retire. He says that he could grow 25% to 35% over the next year by hiring another employee or two and be able to take on more work without any additional advertising. A buyer will not have to worry about this business changing after the closing because he will have contracted work signed 5 months in advance and because his right hand man and longest term employee who manages the operations already knows that he is selling and is planning on staying. These are the two biggest risks in buying a construction company. Both of these typically increase the value of a company by increasing the premium that is applied to his earnings but in this case his family has to come first. He is retiring and relocating to be close to family. He will let a buyer use his licenses including his master plumbers license if he can legally do so until an owner gets his own or can use an employees. He will also offer a full transition of both the books and the business. Typically this means 3 months.

This is a business that is great the way it is but has the demand for them to do more work so a new owner with the working capital to take advantage of this will allow the business to grow much larger. It has the reputation, model, and customers already.

Location: This is Company is NW of Denver in one of the most beautiful places in the country and has seen very consistent growth with a lot of room to continue to grow for 10 plus years into the future.
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Sales price is 435K plus 75% of his cost of inventory which is currently estimated to be $30K($22.5K added to the price). This price is now only 2 times the earnings. He will carry up to 10% of the sales price. He will be keeping his 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.
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Brief Overview and Deal Points:

Growth and Expansion: They have a very small advertising budget which is only $5K per year almost entirely spent on the “yellow pages” with the same add in each of the various areas they provide services for. The company can grow by adding employees, taking on more work which is offered to them every day, increasing advertising, increasing working capital and using it to wrap their vehicles, add new equipment to start doing drain cleaning, etc. Drain cleaning equipment would cost $50K if bought new(Additional truck and camera system along with a couple of other pieces of equipment) and would add $125K per year in revenue. There is a big demand for Drain Cleaning in their market. There are many ways a new owner can grow this business. He believes that he can show a new owner how to expand the installations, the services, and their territory.

The owner will sign a non-compete. He is willing to transition the business and can teach the new owner how to run the business and how to grow it. Industry experience is recommended but not necessary. The new owner will just have to manage and grow the business. The current owner has not worked in the field for years. Vendors also offer classes if the new owner wants his own certifications.

The business has very loyal and long term employees. There are 6 employees plus the owner . All are 2 years or longer with several that have been with him for more than 10 years. The employees are all hourly which keeps fixed costs in line with revenues. The employees are trustworthy, competent, and reliable. He treats his employees well and they are well paid because they are the best in their market. He trusts them to handle all aspects of a job.

He will lease or sell the shop building to the buyer of the business. It is owned by a separate LLC by the Seller. Rent is 1,200 per month with HOA and Maintenance adding another $100/month. He believes the shop will appraise for $115K. It has a small office area, meeting/employee area, storage for the equipment and inventory, a door and garage door access, and is located just off a main road.

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 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.

Colorado is sunny almost all year round and there are a lot of very interesting places close by including Denver. Plus, Colorado is the best State in the country to own a business. Colorado is the "#1" fastest growing and strongest economies in the United States, per Money.MSN.com and Business Insider magazine. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports.
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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.

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:
Not included in asking price
Real Estate:
Owned
Not included in asking price
Building SF:
375
Employees:
6
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
He will lease or sell the shop building to the buyer of the business. It is owned by a separate LLC by the Seller. Rent is 1,200 per month with HOA and Maintenance adding another $100/month. He believes the shop will appraise for $115K. It has a small office area, meeting/employee area, storage for the equipment and inventory, a door and garage door access, and is located just off a main road.
Competition:
The company has a great reputation with a long-standing customer base that send them business in a recurring way. This includes Developers, General Contractors, Business Owners both large and small, etc. He helps to manage new work and customer relations and does not do any of the work himself. He turns down work every day and is already booked through year end. He doesn’t want to hire more people because he wants to retire. He says that he could grow 25% to 35% over the next year by hiring another employee or two and be able to take on more work without any additional advertising.
Growth & Expansion:
Growth and Expansion: They have a very small advertising budget which is only $5K per year almost entirely spent on the “yellow pages” with the same add in each of the various areas they provide services for. The company can grow by adding employees, taking on more work which is offered to them every day, increasing advertising, increasing working capital and using it to wrap their vehicles, add new equipment to start doing drain cleaning, etc. Drain cleaning equipment would cost $50K if bought new(Additional truck and camera system along with a couple of other pieces of equipment) and would add $125K per year in revenue. There is a big demand for Drain Cleaning in their market. There are many ways a new owner can grow this business. He believes that he can show a new owner how to expand the installations, the services, and their territory.
Financing:
Up to 10%
Support & Training:
He is retiring and relocating to be close to family. He will let a buyer use his licenses including his master plumbers license if he can legally do so until an owner gets his own or can use an employees. He will also offer a full transition of both the books and the business. Typically this means 3 months.
Reason for Selling:
Retiring and relocating to be closer to family.
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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