THE BUSINESS: This regionally dominant 25-year
established full-service heating, air conditioning and plumbing
contractor is located in a rural plain area on upper Lake George /
lower Lake Champlain in NY’s Adirondack Park. It provides seasonal
servicing, repairs and year-around new installation services to a
broad range of residential and light commercial clients.
WHY
BUY?
·
Highly
profitable with stable historical sales of over $ 650,000
·
Above
average 45%+ ROE, fast capital recovery on $ 150,000 equity
investment
·
Established 25 years – dominant in region
·
Highly
respected, with cadre of repeat clients
·
Almost $
230,000 fixed assets including office bldg with apartment and 2,400
sq. ft. shop/garage
·
Owner/seller will assist for reasonable transition
·
Expansion potential with existing clients and relationships.
·
Quality
lifestyle in rural/suburban area with vacation and world famous
amenities and activities nearby
FACILITIES
and EQUIPMENT:
The business has
four service vans and utility truck, a loyal and stable non-union
staff of three mechanics and an office administrator and a seller/
owner who does some field work. It has an owned office building
(with a professional services tenant and a rental – or new owner’s-
apartment). An adjacent recently constructed shop/garage of 2,400
square feet houses a $ 65,000 inventory of motors, controls, piping
and tubing, filters and fixtures etc. and bench space.
OPPORTUNITY FOR GROWTH:
Sellers created this successful residential and light commercial
services company and enjoy relatively stable sales consistent with
the nature of the area and their desired work program. There is no
significant regional competition. A new owner with imagination can
fulfill opportunities that exist, and not have to change the basics
of the business – a well equipped, basic and profitable activity in
a great place to live. A moderately mechanical buyer can readily
manage this business with its current wonderful staff, learn the
processes and grow sales and profits via intensified marketing in
existing customer relationships and skillfully applied enthusiasm.
Owner is willing to consider a modest continuing role.
FINANCIAL:
Assets include a first class office
and residential building, an adjacent 2,400 sq. ft. shop/garage,
equipment and vehicles worth $120,000 and a current inventory
estimated at $ 65,000. Sales have been consistently above $ 600,000
and were $ 655,000 in 2008 to produce EBITDO for owner of $ 158,000.
Current forecast are above $ 675,000 annually with $
166,000 EBITDO for new owner. Moderate receivables ($ 40k) and
current payables ($15-20) mean low working capital needs coupled
with strong profitability that offers 15% ROTA and over 45% ROE.
SUMMARY TERMS AND PRICE:
This profitable residential and
commercial service HVAC contractor includes the real estate
(estimated value $ 230,000), vehicles, inventory (estimated at $
65,000) and tools, and is priced at $ 595,000. Bank money is likely
available for a qualified buyer with $ 150,000 to invest and some
relevant experience. Seller will consider some financial
participation and will assist an orderly transition.
