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)
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.
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.
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.
50% Partner - Retirement
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.