Incorporated in the early 1980’s, this is a reputable commercial HVAC contracting business located in the Greater Toronto Area. The business services a roster of blue-chip clients that include universities and large REITs and property developers. It offers installation, maintenance and repair services for pumps and motors for HVAC systems. In addition, the company generates revenue from sale of parts. The business provides 24/7 customer service and has a good reputation in the industry due to its long-standing history. Revenue streams are diversified with no client accounting for more than 3.5% of total revenue. The business has built agile relationships with a network of suppliers and consequently has a strong competitive advantage due to a lower cost of procurement. Over the years, the company has maintained a consistent top line and strong margins, with an average 5-year EBITDA margin of over 25%.
The Canadian HVAC contracting services industry is expected to grow driven by demand in residential and non-residential construction in major Canadian metropolitan regions including the GTA. Industry revenue is forecast to grow at an annualized rate of 1.3% over the five years to 2023 to reach $11.9 billion. Industry demand remains robust in weak economic conditions due to ongoing plumbing and HVAC maintenance requirements.
This is a good opportunity for a private buyer in the plumbing or HVAC industry seeking to diversify scope of services offered by acquiring a reputable company with an established book of clients. The Asking Price is based on a Share transaction and includes working capital of approximately $225,000.
Asking Price: $1,495,000
Revenue (2019): $2,587,000
EBITDA (2019): $688,000
Seller’s Earnings (2019): $778,000
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