Description

The Company is a family-owned, full-services heating, air conditioning (HVAC), mechanical contracting, and service company that has been serving residential and commercial customers in the Baltimore-Annapolis area for many years.

This business offers a variety of service contract options to fit customers’ needs and provides emergency on-call service 24 hours a day. They are specialists at installing a wide variety of nationally recognized vendors equipment. Their on-site shop will design and custom fabricate duct systems to meet customers’ specialized needs.

From 2012 through 2015, sales were steady as the company did not really try to grow, but rather focused on obtaining very profitable work. The year 2013, was negatively impacted by a very understandable and unfortunate event. As things returned to normal the following year, gross margins jumped to over 45% in 2014 and over 42% in 2015 while management kept a tight rein on expenses. As a result, Adjusted EBITDA margin grew to 13-14%. And, in 2016 revenues grew to $4,595,981, with gross margin of 43%, and Adjusted EBITDA of $812,891, with an Adjusted EBITDA Margin of 17.6%. The company also has $4 Million under contract which will significantly impact revenues and profitability in 2017-2018.

Purchase Price: $2,200,000 - includes assets (including working capital) needed to operate the business (minus cash) on an interest-bearing debt free basis.

Reason for Sale: The principles are second-generation owners. They are flexible and would like to stay with a new owner 2-4 years or more.
Proposed Transaction: The owners wish to sell the entire company and will entertain offers of varying financial and legal structures. Each offer will be evaluated on its own merits and in relation to other offers.