MergerPlace

Growing Plumbing & HVAC Company

Michigan


  • Asking Price: Not Disclosed
  • Gross Income: $2,322,056
  • Cash Flow: $388,497
  • Real Estate: $200,000
  • Inventory: Not Disclosed
  • FF&E: $256,319
  • Listing ID: #226107
  • Established: 1990
  • Employees: 15 (2 salaried, 13 hourly)

Business Description

This profitable and long-established Company provides installation and repair services on plumbing and HVAC systems for residential and commercial customers. These services include general plumbing solutions, as well as temperature regulation and ventilation for homes and businesses. Specific services include repair and installation of faucets, sink drains, toilets, water heaters, furnaces, duct work, and much more.

Based in Southwest Michigan, the Company’s primary customers come from this area. Founded in 1990 and staffed with many experienced plumbers and technicians, the Company has established itself as an industry leader with a reputation for quality and on-time service in the West Michigan area.

The Company’s main customers include homeowners, home builders, and building owners. The Owner also owns the facility the Business operates out of. The facility is 12,000 square feet with 8,000 square feet occupied by the Company and the additional 4,000 square feet occupied by an unrelated third-party. The Owner is flexible to sell or lease the facility to the new owner(s).

Despite the COVID-19 pandemic, the Company had a record year in 2020. The Owner believes the Company’s current capacity sits around $2.5M-$3.0M in revenue, with much room for growth with additional personnel and investment.

Thank you for reading this overview. The extent of the information that we are publicly permitted to reveal about this opportunity is contained in this overview. Please submit your contact information in the provided form. We have automated the processing of NDAs and sending of information for speed and efficiency. You will be sent a link to our online NDA. IF YOU DO NOT RECEIVE THE NDA LINK, PLEASE CHECK YOUR JUNK MAIL. If the email cannot be found, please email info@caldergr.com and request a PDF version.

Once we receive your NDA and answers to some basic questions, the Confidential Information Memorandum (CIM) will be sent to you from the project manager.

IF YOU DO NOT RECEIVE A FOLLOW UP EMAIL AFTER YOU SUBMIT YOUR NDA, PLEASE CHECK YOUR JUNK MAIL FIRST. If you do not see the email there, please email info@caldergr.com for support. Thank you in advance!


Business Details

Primary Business Category: Construction - Building, Developing
Location: Michigan

Company Information

Year Established: 1990
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 15 (2 salaried, 13 hourly)

Financial Information

Gross Revenue: $2,322,056
Cash Flow: $388,497
EBITDA: $246,699
FF&E: $256,319
Real Estate: $200,000
Seller Financing Available: Yes

Property Information

Facilities:

The Owner owns the facility the Business operates out of. The facility is 12,000 square feet with 8,000 square feet occupied by the Company and the additional 4,000 square feet occupied by an unrelated third-party. The Owner is flexible to sell or lease the building to the new owner(s).

Growth & expansion opportunities:

(1) Implement Inventory Control System/Software: Currently, the Company manually tracks its inventory. Implementation of a control system or software could be a good way for new ownership to cut costs and increase cash flow. Without inventory control software, the Company is not maximizing its efficiency in this area. Implementing a system to track inventory purchases, warehousing, turnover, reordering, and other aspects of inventory management could drastically increase efficiency in these regards. (2) More Aggressive Marketing Approach and Advertising Strategy: Currently, the Company does little marketing compared to its competitors, and the Company's social media is rarely updated. Revamping the Company’s marketing strategy could allow for significant growth. New ownership could take this task on themselves or hire a marketing agency to handle this project. (3) Streamlined Process and Procedure Maps: The Company could benefit from processes in sales, warehousing/inventory, job bidding, job billing, and others. Implementing processes in these areas can save new ownership time and money, as well as increase performance. New ownership should look further into what specific processes can be put into place to lower costs and save time. (4) Growing Plumbing & HVAC Market: The Plumbing and HVAC industries are growing significantly, with growth expected to continue well into the future. Per IBIS World, the plumbing and HVAC industries are expected to grow by 2.9% and 4.1%, respectively, over the next five years. Key drivers of these industries include the value of residential construction, home starts, and private spending on home improvements, which have all increased over the past five years. Industry growth creates excellent opportunities for new ownership to expand and increase the Company’s top-line revenue.

Competition:

Investment Highlights Include: (1) Diverse Employee Base and Skillsets: The Company offers a diverse employee base with a wide variety of skillsets. With 15 experienced employees, the Company can offer services in both the plumbing and HVAC industries. This diverse skillset allows the team to adapt to available work, whether that is service, remodel, or construction work. The numerous experienced employees will provide stability and ease the Company’s transition to new ownership. (2) Just the Right Company Size: The Company is just the right size for an investment. The Company’s healthy margins make this a profitable investment opportunity from day one. With 15 employees and an 8,000 square foot facility, the Company is not too big to handle for an individual. Additionally, it is not so small that it will not provide sufficient cash flow or growth opportunity for a company looking to perform an add-on acquisition. The Company’s size allows them to take on significant commercial jobs while offering the same customer service they provide for residential work. The Company can take on large projects and bid against companies 4 to 5 times their size, but with less overhead, they do not need to land big jobs to keep their staff busy. (3) Optimal Response Time: The Company promises to show up and complete the job on time, every single time. The Company has a long history of doing just that and has built a strong reputation in the industry. Homeowners, homebuilders, and building owners alike can trust that the Company will comply with its deadlines and deliver quality service within their time constraints.

Reason for selling:

The Owner would like to scale back his involvement in the Company.

Support & Training:

Ownership is willing to provide reasonable and customary transition assistance. The Owner is open to staying on in a long-term role if needed.

Contact Business Seller

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Business Listed By:

Max Friar

Calder Capital, LLC