HVAC Business For sale With 90 year History

1816

More than $450,000 in owner cash flow provided by this 90 year old industrial, commercial and residential HVAC company in Southeast Nebraska, offering sales, installation and service of heating and air conditioning systems. As a factory authorized Carrier Dealer, the certified technicians receive regular factory training to update their skill set. The business provides an ever increasing range of services and is continuously adopting the latest energy efficient technologies to service all makes and models of heating and air conditioning systems. An established website as well as a presence on social media has been established for the company as well as traditional advertising methods.
Consistent year over year sales increases for the past four years as well as annual owner cash flow of more than $450,000 for the past two years. Utilizing the funding example above, an initial investment of $145,000 would earn a new owner a net operating income of $215,020 as well as a return on the investment of 148% after debt service.

Financial Overview
List Price: $1,450,000
Gross Sales
2015: $2,272,060
2014: $1,764.832
2013: $1,522,716
2012: $1,358,878
Owner Profit/Cash Flow
2015: $429,870
2014: $453,483
2013: $408,888
2012: $229,266
YOY Growth/Sales Trends: YOY growth of 12%, then 15% projected at 19% from 2014 to 2015
Profit Margin: 25%
Multiple: 3.2 *Multiples range from 1-5, with the average being 3
Valuation: 2014 Cash Flow x Multiple = Price
$453,483 x 3.2 = $1,451,146

Assets Included in Purchase: $519,490
Equipment: $79,588
Vehicles: $276,328
Intangible Assets:
Inventory: $28,064
A/R: $135,510
*amounts may vary
Business Information
Year Established: 1925
Location and Service Area: Southeast Nebraska
Demographics: Large and small commercial clients and residential
Reason for Selling: Concentrate on other businesses within portfolio
Building: owned by seller will lease back to new owner
Employees: 12 service technicians and 3 office staff
Hours: 7:30 a.m. to 4:30 p.m.
Seller Training Period: 3 to 6 months
Growth Opportunities:
Current Owner’s Responsibilities: overall management and business oversight

Funding Example
Purchase Price: $1,450,000
10% Buyer Down Payment: $145,000
20% Seller Financing: $290,000
80% Bank Loan: $1,015,000

Facilities:

Building: owned by seller will lease back to new owner Location and Service Area: Southeast Nebraska

Training/Support:

3 to 6 months

Seller Financing:

20% Seller Financing: $290,000

Sale Reason:

Concentrate on other businesses within portfolio