Cash Flow Rich HVAC Contractor
This well-known Residential & Light Commercial HVAC Contractor (Niche in Radiant Heat) has provided quality heating and air conditioning services to the local Ocean County and surrounding NJ/PA region for over 25 years. The Company has experienced consistent revenue growth and enjoys high operating margins with documented profitability. The seller’s 2,000 SF facilities (including sheet metal fabrication) are perfectly suited to servicing the local target market.
The Company enjoys a competitive advantage by leveraging its locally recognized brand, industry expertise and impeccable reputation to provide its loyal client base with an exceptional customer experience and fair pricing – stability and growth have been the result. This is a turnkey operation with experienced management and technicians in place plus an owner that is willing to stay on in an advisory role. It is projected that a new owner will obtain compelling additional growth by expanding the direct sales efforts to serve a wider territory with a minimal personnel investment of $100k to $200k per year. The company projects an accelerated revenue growth rate under such premise of 20% to 30% per year.
The Company has been fully reviewed and conservatively appraised by a well-known national valuation firm at 4.1x EBITDA (ttm). A full valuation report is included and there is $75,000 in Net Working Capital plus another $325,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner-operator will obtain over $180k benefit in after-acquisition- debt cash flow or almost 110% ROI in Year #1.
A comfortable six-months transition period will be provided by an owner who truly wants to continue to see the business flourish. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
(ALL DATA BASED ON SIGNED TAX RETURNS)
Financials (USD)
Asking Price $840,000
Cash Flow $370,000
Sales $2,100,000
Deal Terms
Represented by broker? Yes
Buyer Fee? No
Seller Financing? Yes
Willing to co-broke? Yes
Principals only? No
Franchise? No
Management will stay? Yes
Relocatable? Available On Request
Real Estate? No
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