HVAC Service & Rental Co. / Reputable w Strong MRR

We represent a well-established and reputable residential HVAC services and water heater rental provider for the Southern Ontario golden horseshoe market (the “Company”) that is seeking acquisition. Founded by the principals in 1992, the Company serves a growing base of residential consumers with HVAC system replacement, parts and maintenance, maintenance plans, and water heater rentals. Revenues are consistent and averaged $925,000 from 2021-2023, with an average EBITDA of $105,000 annually. In addition to regular ad hoc HVAC services revenue, the Company generates monthly recurring revenue (MRR) of greater than $8,000 or $96,000 annually. This recurring monthly cash flow is 53% water heater rentals, 39% financings, and 8% maintenance plans. There is an opportunity for the acquirer to significantly expand its water heater and maintenance plan programs, which have grown organically with limited marketing initiatives.

In support of their operations is a durable asset base with an estimated replacement value of $400,000. Assets comprise $85,000 of service vehicles, $50,000 of equipment and tools, and $260,000 of rental and parts inventory. Utilizing these assets and driving the Company’s success is a team of seven employees, excluding ownership and related parties. Employees include three technicians and an administrative and customer service team of three part-time staff. All staff are seeking long-term employment opportunities and are non-unionized. The founder and President is open to a normal-course management transition period. Subsequently he will be retiring, which is the reason for the sale.

The Company has prepared initial diligence material prepared for review by request with the execution of a Non-disclosure Agreement (NDA) by the interested parties. Please contact our office by email for further information.