||Employees||2 full, 1 part
* Included in Asking Price
Current Owner is only responsible for bidding – performs less than 5% of labor. This family-owned business in Western Iowa sells, installs and services heating and cooling systems in residential and light commercial locations. Sales and installation services are available for heating and cooling systems, thermostats, air cleaners and disinfection systems. New construction and remodel installations make up a portion of the annual gross sales. In 2014 the business generated slightly higher sales with repair and replacement services resulting from local hailstorm damage. The business has high SEO rankings with Google, helping to attract new clients. Profit margin is 13%. Business is fully staffed with a Service Manager, one Installer and one part time Office staff responsible for AP and AR. A new Owner could walk into the business, learn the bidding process from the Seller during transition and continue to let the business operate as is or perform an additional percentage of the labor and potentially expand the business. Plumbing or electrical services could also be added. Using the Funding Example above and an annual Cash Flow of $101,514 (average of 2013 and 2014), a Buyer could retain a Net Operating Income of $51,370 after annual debt service and a 163% Return on Investment on the $31,500 down payment in the first year of operation.
Reason for Selling: Second Chapter
Personnel: 1 Service Manager, 1 Installer, 1 PT office
Support to Buyer: Seller will provide training and transition support for 90 Days
Additional Information: Customers Served: Residential and Light Commercial Population in Service Area: ~ 20,000
Growth Opportunities: Add either plumbing or electrical services.
Current Owner’s Responsibilities: Bidding - Owner performs less than 5% of actual labor
Financial Overview: Gross Sales 2015: $615,169 (Annualized)
YOY Growth/Sales Trends: Some of the increase in gross sales from 2013 to 2014 attributable to hail damage work.
2013 and 2015 Gross Sales better reflect normal operating income.
Owner Profit/Cash Flow 2015: $169,209 (Annualized)
Assets Included in Purchase:
Equipment and Vehicles: $192,265
Intangible Assets: Energy Star Certified
Accounts Receivable: $35,102
Secured Purchase Orders for Future Work: $70,000 *Amounts may vary
Purchase Price: $315,000
10% Buyer Down Payment: $31,500
10% Seller Financing: $31,500
80% Bank Loan: $252,000
The Bank Loan is fully collateralized with current Business assets.
|Growth Potential:||Add either plumbing or electrical services.|
|Seller Financing:||10% Seller Financing: $31,500|
|Sale Reason:||Second Chapter|
Seller Reference #SER016
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