Details - Information last confirmed on May 20, 2021
Owner is ready to retire and will work with a buyer for a seamless transition. This company has been the go-to enterprise for over 70 years for HVAC (60%) and plumbing (40%) needs in the area. With their dedicated and talented staff they service or replace units for their commercial (80%) and residential (20%) customers. This business operates out of a 5,000 square foot office/warehouse building. This fully certified firm operates in 11 cities/ markets where they have top-of-mind awareness and name recognition. They provide both HVAC, plumbing services and environmental to their large commercial customers. They currently have $2.5 million in signed contracts for upcoming jobs.
This company traces its roots back to the late 1940s, initially providing plumbing and heating services to commercial and residential customers. Even before it was established as a formal company, it’s founder introduced air conditioning to their market while working for his previous employer.
Buyer does not need to be HVAC licensed. An electrical, H2 and H3 license are held by key employees. Buyer should be proficient with Quickbooks, general HR, management, marketing, etc.
The business operates in a 5,000 sq.ft. office/warehouse building (4,000 sq. ft. office FF & SF, 3,125 sq. ft. SF storage, 2,500 sq. ft. FF storage, 1,850 sq. ft. heated and cooled metal shop. 1,500 sq. ft. covered parking/storage area.) There are two additional out buildings for equipment storage: one is 1.500 sq. ft. (three sided) the other is 1,200 sq. ft. (enclosed and heated). These buildings sit on approximately 2 ½ acres. The owner of the company owns the real estate. A buyer has the option of continuing to lease the facilities for $8,000 per month (triple net) or buying for the appraised value. Additional adjoining property (up to 10 acres) is available for sale as well.
The owner has restricted the work to mostly a 35-mile travel area (however the company has some “special customers” that exceed that limit). He has also limited the job sizes to approximately $1M each (Plumbing & HVAC managed as separate jobs). If a new buyer is willing to increase that cap, there is more opportunity available. This company works at several area hospitals (as well as their satellite clinics). As the hospital(s)' preferred vendor, they perform Plumbing, HVAC, & Medical Gas piping for maintenance work as well as new construction and renovations. This company works for larger privately-owned surgery clinics, adult care centers, schools (community colleges, as well as K-12), and some factories. This company does select military jobs for select contractors,however the opportunity for additional military work is almost unlimited. If a new owner is interested, there are tract housing and new construction opportunities available also.
There are several competitors in their market that do residential and light commercial jobs. However, this company is by far the largest, best equipped, and has the skilled employees to bid and win larger commercial contracts (including bonded work). The nearest competitors are located over 1 hr. away.
To ensure a successful transition for the buyer, the seller is willing to remain involved in the operations for a period of time. He will work with the buyer to transfer his business knowledge and industry relationships which are unmatched in their market.
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.