This well-known mechanical services company provides design, build, and maintenance services for heating, ventilation, and air conditioning (HVAC) and electronic controls systems for local businesses and private institutions throughout Maryland and Washington, D.C. The firm enjoys significant operating margins and documented profitability throughout its more than 10- year history.
The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 3.3x SDCF (ttm). A full valuation report is included in the prospectus. There is $310k in Net Working Capital plus another $380k 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 more than $400k benefit in after- acquisition-debt cash flow in the first year or a 86% ROI.
(ALL DATA BASED ON SIGNED TAX RETURNS)
This business currently operates from a 5,000 sq. ft. warehouse with office space owned by the seller but not included in the business sale.
It is projected that a new owner will obtain additional growth by expanding the “controls” business through acquisition of new franchises at minimal investment. Also growing is the consulting business, which is designed to help customers save costs. The company projects a revenue growth rate from these new services of 15%+ per year.
The company enjoys a competitive advantage through long-term customer relationships based on solving customer problems within their financial constraints by keeping legacy systems functioning while gradually replacing them with new installations.
A comfortable transition period is offered by the owner who truly wants to see the business continue to flourish. Seller will consider a consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.