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Co Resort Town HVAC, Price Drop To Less than 2x Earn, Sp Now Only 415kRecurring Customers, Good Technicans, Great Reputation
$415,000 Cash Flow: $200,000 Seller Financing
Co Resort Town HVAC, Price Drop To Less than 2x Earn, Sp Now Only 415kRecurring Customers, Good Technicans, Great Reputation

Dillon, CO

PRICE DROP to $415K from $445k which was dropped in January from $540K, plus 75% of his $50K cost of inventory which is $35K on top of the $425K for everything. That is a 125K price drop in 3 months. This is now approximately 2 times the 2017 earnings and less than 2 times the 2 year time weighted earnings. He will help in transition for up to 4 months and will offer consulting longer term if a new owner wants his help. He believes this business can get back to the $3.5M in revenues it did before the down turn with a new owners energy and his model. He will also sell the parts supply company which is now profitable for 75% of his actual cost to inventory. The “Supply House’s” inventory is $90K. It is generating $400 a day on average in new sales, and helps him to get a great cost of supplies for the HVAC Co that he can’t get anywhere else. He will sell the Supply Company for $67,500. The supply house made $15,000 last year and is growing steadily. It also makes All American more profitable. He will lease or sell his building which has the HVAC Co on the main floor and the Supply Company on the 2nd floor. The sales price will be 295K. He bought it for 235K and has over 50K in upgrades to it. Bottom line is a buyer can buy the main business with its inventory and supply business for $517,500 now and lease the building or buy the building with both businesses for a total of $812,500. This is a great price for an established business with a history and model that has tremendous growth built into it. 12 Year Old Colorado Residential/Commercial HVAC Company 2017’s earnings were 200,058 for the HVAC Co not including a $15K profit for the Supply House on revenues of 1,064,392. The earnings for 2016 were 282,229 with revenues of 1.28M for the HVAC Co. He is working on the PL for the HVAC Supply Co but estimates it will add approximately 100K in revenue and 15K in profit to these numbers and is growing. He opened the Supply Company as separate parts counter business in January of 2016 to help control his parts cost for his main service business. The owner brought in a partner that was caught stealing back in 2011 and 2012. He had to go through the whole 2 ½ year court process and it affected him both financially and mentally. It resulted in him wanting to sell and to do something else. The business went from 3.5M in revenue in 2010 to bottoming out in 2012 at 982K because of this distraction. He is turning down some large projects because he needs working capital to grow the business again. The buyer will get approximately 250K in hard assets made up of almost 200K in equipment including 7 vehicles and another 50K in inventory for the HVAC business only(Not the Supply Co). The new supply/parts business will be sold separately at 75% of his cost of inventory. The company has a great reputation with a long-standing and recurring customer base. Technicians with strong technical and sales ability with sales processes in place. The company has a client generated online review process that drives a lot of referrals and recurring revenue. They also have a lot of yearly maintenance contracts which they charge customers 240 dollars per year for ongoing maintenance tune ups which also helps generate revenue all year long and helps keep the clients loyal. This is a business that needs an owner with the working capital to grow the business again. It has the employees, equipment, reputation, model, and customers. Location: Central Mountains of CO near a Major Resort Town ______________________________________________________________________________________ The seller is asking for 415K plus 75% of his cost of inventory which is currently estimated to be $50K($35K added to the price). This price is approximately 2 times the earnings. He will carry up to 20% 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. ______________________________________________________________________________________ Brief Overview and Deal Points: Growth and Expansion: The company can grow by increasing advertising, increasing working capital, and by just taking more jobs. They turn down work because of working capital needs and the need for more employees. There are many ways a new owner can improve this business. The current owner has been tied up in court and to drained to grow the business over the last couple of years but loves the industry, his employees, and the company. He is excited to teach the new owner how to grow this business. The business can easily expand its coverage area with a better facility in the Silverthorne area. They turn down business in Vail and along the I 70 corridor between Vail and Silverthorne all the time. The company used to have 3 other separate divisions made up of plumbing, supplies, and construction and shut it all down when he found that he had to fight his partner in court. He said the demand is still there and it is up to the new owner how big they want to be. He peaked at 3.5M in revenues and said he was on his way to 5M when this happened. He believes that he can show a new owner how to expand both the services and territory to get back to 3M or more within 3 years. 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. He will consider staying on also. Industry experience is recommended but not necessary. There are no master licenses required and he and his employees have the necessary certifications so the owner just pulls permits which he can teach the new owner how to do. Vendors also offer classes if the owner wants his own certifications. The business has very loyal and long term employees. There are 4 employees. The employees are all hourly which keeps fixed costs in line with revenues. The employees are trustworthy, competent, and reliable. Two years ago, he modernized the business by going paperless by providing every employee an IPad which has improved customer service, the tracking of previous work done for a customer, and billing. He treats his employees well because they are the best in their region. He trusts them to handle all aspects of a job including the sales, bidding, work, and customer service. His employees get a bonus for doing a good and profitable job and have stayed very loyal to the company though the turmoil He gave up their location in a major central CO resort town in July of 2014 and has found a new location in mid 2016 in a nearby town which is the biggest location at the best price that is near their main service area. Rent has always been part of their P & L and has been adjusted to the $1,600 per month he is paying himself now which he believes is an accurate market rate. The new location has the HVAC business downstairs and the HVAC supply co upstairs. The new location was necessary because they have 7 trucks and the combination of employee cars and that many trucks made it impossible to find a reasonably priced location closer to their main service area. This new location will make it easier to grow the business again. He will lease or sell the property to the buyer of the business. Keep in mind that it is inexpensive compared to the resort town that they service the most, most of his employees live in that area and they set up the trucks for the jobs every day at that location, and he is getting a steady increase in new business for the supply company because of that location. He recommends a 2nd location in Silverthorne/Dillon eventually to expand their market to grow the business even faster. 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 communities that this business services are very special with year round events, and activities. Plus, it is sunny almost all year round in Colorado and there are a lot of very interesting places close by including Denver which is less than an hour and a half away. 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 and Business Insider’s September of 2014 issue. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports. 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 303-905-7607 Direct 303-284-7025 Main 720-524-6482 Fax 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.

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