Profitable and Established HVAC Business (Real Estate Included)

Richmond, VA (Richmond City County)

Seller Financing Available
HVAC ELECTRICAL AND MECHANICAL BUSINESS
Contact Seller

Asking Price: $1,790,000

Cash Flow: $300,000

Gross Revenue: $2,319,000

EBITDA: N/A

FF&E: $172,000

Inventory: N/A

Real Estate: $590,000

Established: 1993

Profitable and Established HVAC Business (Real Estate Included)

Save Print Share Valuation Report

Business Description

Maxwell & Associates is proud to offer this profitable and well established HVAC business. This old and established HVAC business has served the Richmond community for over 20 years.

The business serves customers throughout Richmond, Virginia and surrounding counties with installation and servicing of central air conditioning systems, heating systems, gas forced air conditioning furnaces, heat pump systems, air cleaners, humidifiers, zoning systems, ductless mini-split systems and water heaters. They have a large database of customers and service contracts.

This company is reputable and has reliable, well-trained staff with a high retention rate. The staff have excellent training and are certified by the EPA, ACCA, and others.

Revenues have increased over the years. From 2016-2018, revenues increased from $1.8 Million in annual sales to over $2 Million.

The company owns their storefront location and storage facilities.

Industry Specifics:

HVAC companies are amongst the most sought-after businesses in the country. Reason being, HVAC businesses since 2015 have witnessed an increase in business activity and consumer spending. As of 2018, the annualized growth rate over the past five years has been 2.8% and is projected to be 2.3% over the next five years. Depending on the location, the growth rate varies due in part to the expansion of nonresidential and commercial buildings. Understanding that every residential and commercial building requires heating and cooling indicates that HVAC companies are always in demand.
HVAC companies are a great investment for a potential buyer because there are several factors that one could implement to expand an HVAC company.

There are countless factors to take into consideration, but this will provide you with the basis of what your company is worth. If you are searching for a more extensive valuation, reach out to a valuation professional like myself.
With a clearer understanding of what your business is worth, you can begin taking steps to increase the value of your HVAC business. I will touch on 4 ways in which you can increase the value of your business.
1. Markets and Services Segmentation
How does your business stack up next to the industry in terms of revenue breakdown? The primary revenue sources for HVAC companies are installation, repairs, replacements and maintenance. Observe the percentage breakdown of your revenue to see how each product and service you offer compares to that of the industry. In addition, identify the source of each product or service purchased. Below is data derived from IBISWorld. If you are interested in more industry research, feel free to contact me.
HVAC Products & Services:
· New Construction HVAC Installations – 50.8%
· HVAC Maintenance and Repairs – 32.5%
· Existing Structure HVAC Installations – 10.8%
· Refrigeration System Installations – 5.9%
In addition, you can compare your revenue against the reported HVAC market segmentation as described below.
HVAC Market Segmentation
· Single-Family Homes – 25.6%
· Manufacturing and Industrial Buildings – 12.7%
· Office Buildings – 11.6%
· Retail and Storage Space – 11.6%
· Healthcare and Public Safety Buildings – 10.4%
· Educational Buildings – 9.2%
· Apartment Buildings – 6.4%
· Other – 12.5%

Detailed Information

Location:
Richmond, VA
Inventory:
Included in asking price
Real Estate:
Owned
Included in asking price
Building SF:
3,500
Employees:
11
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Warehouse and work area in building on busy main road in Richmond, Virginia.Building is 4,242 SF.
Competition:
Industry Specifics: HVAC companies are amongst the most sought-after businesses in the country. Reason being, HVAC businesses since 2015 have witnessed an increase in business activity and consumer spending. As of 2018, the annualized growth rate over the past five years has been 2.8% and is projected to be 2.3% over the next five years. Depending on the location, the growth rate varies due in part to the expansion of nonresidential and commercial buildings. Understanding that every residential and commercial building requires heating and cooling indicates that HVAC companies are always in demand. HVAC companies are a great investment for a potential buyer because there are several factors that one could implement to expand an HVAC company. Markets and Services Segmentation The primary revenue sources for HVAC companies are installation, repairs, replacements and maintenance. Observe the percentage breakdown of your revenue to see how each product and service you offer compares to that of the industry. In addition, identify the source of each product or service purchased. Below is data derived from IBISWorld. HVAC Products & Services: · New Construction HVAC Installations – 50.8% · HVAC Maintenance and Repairs – 32.5% · Existing Structure HVAC Installations – 10.8% · Refrigeration System Installations – 5.9% In addition, you can compare your revenue against the reported HVAC market segmentation as described below. HVAC Market Segmentation · Single-Family Homes – 25.6% · Manufacturing and Industrial Buildings – 12.7% · Office Buildings – 11.6% · Retail and Storage Space – 11.6% · Healthcare and Public Safety Buildings – 10.4% · Educational Buildings – 9.2% · Apartment Buildings – 6.4% · Other – 12.5% Industry Forecast The HVAC industry is growing and evolving. New innovations are opening doors, creating opportunities for new markets to conquer and business growth.
Growth & Expansion:
HVAC Market Analysis: Market Size and Growth Rate The HVACR systems market was an $81.1 billion market as of 2015. The market is expected to grow by 5.5 percent each year through 2020, leading to opportunity worth of $130.7 billion by that time, according to industry news. Refrigeration is expected to be a major player in this growth, as the demand for food processing and cold storage expands. Booming construction markets are adding demand for contractors – the residential construction market is back, and economic activity is increasing, expanding the need for residential and commercial HVAC services.
Support & Training:
Owner willing to stay on and train and work as long as needed.
Reason for Selling:
Retiring
Contact Seller

Contact the Seller

(from currently available funds)
 
Contact Seller Loading

Jim Maxwell, JD/EA, CRE

Business Listed By:
James S. Maxwell, JD/EA, CRE

Maxwell & Associates, PLLC

Show Phone Number

View My Listings

Listing Statistics

Unlock

Demographic Information

Unlock


Ad#:1676574 Report an issue with this listing

The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness.
Read BizBuySell's Terms of Use before responding to any ad.


Similar Listings


The Entrepreneur’s Source

Franchise Opportunity
Cash Required: $85,000