MergerPlace

Cash Flow Strong Commercial HVAC Firm

Central New Jersey, New Jersey


  • Asking Price: $700,000
  • Gross Income: $1,400,000
  • Cash Flow: $300,000
  • Real Estate: Not Disclosed
  • Inventory: $110,000
  • FF&E: $90,000
  • Listing ID: #202645
  • Established: 25
  • Employees: 10+

Business Description

This well-known Commercial & Industrial HVAC Firm has provided expert engineering, installation and support services to a loyal central NJ client base for over 25 years. This well -established company has experienced strong revenue growth (20% actual average annual growth rate since 2015) and enjoys significant operating margins with documented profitability.

The company has been fully reviewed and conservatively appraised by a well-known national valuation firm at 2.9x SDCF (ttm). A full valuation report is included in the prospectus. For the 50% portion, there is $37k in A/P to be assumed, however this is offset by $100k in current Accounts Receivable and another $100k in Fixed Assets. By implementing the proposed 50% deal structure an owner operator will obtain about $165k benefit in after-acquisition-debt cash flow in Year #1 – over 80% return on equity investment.

(ALL DATA BASED ON SIGNED TAX RETURNS)


Business Details

Primary Business Category: Contractors - Special Trade
Location: New Jersey
Metropolitan Area: Central New Jersey

Company Information

Year Established: 25
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 10+

Financial Information

Asking Price: $700,000
Gross Revenue: $1,400,000
Cash Flow: $300,000
FF&E: $90,000
Inventory: $110,000
Seller Financing Available: No

Property Information

Facilities:

The seller’s modern facility in Central New Jersey totals 2,500 SF and provides a strong base of operations for all aspects of the business and plenty of room for growth.

Growth & expansion opportunities:

It is projected that a new 50% owner will obtain additional explosive growth by leveraging existing relationships, facility capabilities and marketing initiatives to expand the service base exponentially. A modest investment in targeted marketing and additional staff (with no additional overhead expense) should increase annual gross revenue by an additional $1,000,000 to $2,000,000 within 3 years.

Competition:

The Company enjoys a strong competitive advantage and high brand awareness by providing tailored design, engineering, management and service with high integrity, personalized service and an attractive pricing schedule. In addition, the modern in-house sheet metal shop allows the firm to control costs and time.

Reason for selling:

50% Partner - Retirement

Support & Training:

A comfortable 6-month transition period will be provided by the exiting partner 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 partner in all aspects of the business.

Contact Business Seller

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Business Listed By:

Karin Neumann

A Neumann & Associates, LLC