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Details - Information last confirmed on November 5, 2020

After a successful 30 year run as owner-operator of this cash flowing HVAC sales/service business, the owner is planning to sell his successful company and retire after providing the buyer a generous period of transition training.

Located in a free-standing 5,000 square foot building (included in the sale price) nicely located near the downtown of a desirable West Michigan city, the real estate also includes a contiguous fenced in lot (included in the sale price) for both employee parking and the company’s three service vehicles (all included in the sale price).

The building houses company offices, ample storage areas for the low six figures of new HVAC units and service parts, and a compete, fully equipped sheet metal fabrication shop.

The company has three full-time, highly skilled, well-paid, non-union technicians and a full-time office manager. The owner has scaled back his work involvement in recent years limiting his involvement to selling new equipment which is well represented by the premier lines the company represents.

The company averages $850,000 in annual sales with minimal disruption due to Covid-19. Annual SDE (seller’s discretionary earnings – the normalized historical cash flow available to pay an owner-operator and service debt) averages nearly $200,000.

The business is listed at $565,000 which is comprised of a favorable 2.35x multiple of SDE plus $25,000 of inventory and $100,000 of real estate. And for a qualified buyer, the seller will carry a high five figure seller note. For a typical purchase, a buyer putting $75,000 down, the seller matching that with a $75,000 seller note, and a $415,000 SBA term loan, the post debt service cash flow available for an owner-operator averages $135,000.

The seller contemplates an asset sale in which he retains cash and A/R while retiring all liabilities. The buyer gets (1) an extensive list of active customers; (2) the real estate; (3) the inventory; (4) three service vehicles; (5) a full sheet metal shop; and (6) a wealth of industry appropriate tools. The goodwill of the business also includes excellent books and records for a company of this size.

This business would make a great tag-on for a company either already in the industry or wanting to expand its service offerings by adding HVAC. Also, a sub-contractor in the building trades who wants to control his own destiny should be excited by this opportunity too. For more information on this well-priced, attractive business opportunity, please contact broker.

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