This is a niche business in commercial refrigeration services. The business comprises a combination of regular inspections (preventive maintenance), maintenance, warranty work and emergency calls in a 200 mile radius. The business has over 150 customers on preventive maintenance and has turned down additional work.
Seller will provide transition training for up to 52 weeks at a negotiated hourly rate. The seller will work full time the first 60-90 days and then 3 days a week or as needed.
The business operates out of an 1,800 square foot, stand alone shop. It is a metal building on 0.70 acres. The property/shop is owned by the seller. It is not part of this transaction, but the owner would consider leasing it. Although the seller does not pay rent, annual rent of $6,000, utilities, taxes, insurance and repair costs are included as expenses in the valuation of the business. The customers never visit the shop, so it can easily be relocated.
The business owner has turned down additional business as he "makes a comfortable living without expanding". The competition is limited and the territory can be expanded beyond the 200 mile boundaries currently set. The business recently increased the billing rate 3.8% and could have increased more as they are still below the competition.
There are few competitors in this niche industry. The owner actually turns down business because he is comfortable with his current revenue. The competitors he does have charge more for their services.
Owner is retiring.
The business repairs, does preventive maintenance, certifications and warranty work on Minus 80 refrigerators and ultra low temperature (ULT) freezers. Business licenses are required in order to do work in some of the cities & counties. A 4 day class with Thermo Fisher is required for certification to work on their equipment.