1) Well-Established with Strong Customer Base in High-Demand Market Segment
2) Experienced Management with Ownership Available through 2021 to Assist
3) Motivated Owner Helping in Transition & Ideal Facilities Available for Growth
4) Acquisition Financing Pre-Approved for 70% of Deal Price - 61% ROI in Year 1
This well-known Industrial & Commercial HVAC Services Firm has provided expert design, installation, renovations, retrofits and ongoing maintenance services to a regional client base for over 25 years. The average revenue consists of 90% new installation and retrofit projects (including a significant number of repeat customers) with the remaining 10% being ongoing service and maintenance. This well-established union shop has experienced reliable revenue performance and enjoys significant net operating margins with documented profitability.
The Company has been fully reviewed and conservatively appraised by a well-known national valuation firm at 3.9x SDCF (2018). A full valuation report is included and shows there is $600,000 in Net Working Capital plus another $100,000 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 more than $730,000 benefit in (after- acquisition-debt) cash flow in the first year or a 61% ROI.
(ALL DATA BASED ON SIGNED TAX RETURNS)
The Company has a 1,200 SF facility (available under separate purchase) providing a strong base of operations, storage capacity and ample room for growth.
The Company has significant growth potential in the target market (especially upselling existing contracts and enlarging the service region) – aggressive marketing efforts, team expansion and a broader reach could grow top line to $15M in 5 years.
The Company enjoys a strong competitive advantage and high customer retainage gained through years of providing expert industrial piping, equipment rigging, process services and responsiveness to customer requirements – on time and under budget. The Company has a long- standing industry reputation for excellence and strong customer service – consistently delivering more value to its diversified customer base.
A comfortable transition period is offered by the owner who truly wants to continue to see the business flourish. An extended consulting agreement is available. A very well trained and highly qualified team is in place to support the new owner in all aspects of the business.