Located in Carroll County, MD and servicing commercial and residential customers primarily in Carroll, Baltimore and Howard Counties, MD, this company is a full-service heating, air conditioning and ventilation (“HVAC”) company. Established in 1997 by its current owner and president, the company’s dedication to quality craftsmanship, prompt service and reasonable prices has allowed it to grow from a business with a single pick-up truck and a set of tools to a company with five service vehicles, a well-equipped shop and over $1 million in annual revenues.
From its inception, the company avoided the risky new home and track home construction market. Rather, it focused on service, maintenance and retrofit installation – business that was stable and provided good cash flow - and on acquiring service contracts. The company currently has 216 service contracts that provide the company with $182,000 in annual base revenues. Approximately 76% of service contract revenues relate to commercial accounts. Retention rates for all service contracts average 95% per year.
The company does almost no marketing; over 90% of its business is repeat and referral. Its equipment and vehicles are modern and well-maintained. Its customer base is broad-based and stable. All in all, this is a stable, clean business with an excellent reputation and a strong cash flow. It is also ripe for expansion with more aggressive new ownership.
About the Business
Number of Employees:
The busines is headquartered in a leased approximately 2,300 square-foot office/warehouse facility conveniently located near major highways. Rent is $1,100 per month. The facility houses the company's offices, warehouse space and workshop. There is plentiful parking.
Driven by a recovery in residential housing, the $14 billion HVAC industry is projected to grow by at least 4.5% annually for the next few years. The company's current owner, however, hasn’t attempted to grow the business and “cash in” on this industry upswing. Rather, he operates it as a “lifestyle” business, earning a good living but not making efforts to expand. New ownership could easily leverage the company’s reputation, client base and expert work force into significant growth. The greater Washington DC area contains 7 of the top 10 richest counties in the nation. Howard County, already in this company’s market, is the 5th richest. Adjacent to the company’s existing market is Montgomery County, the 10th richest in the nation and Anne Arundel County, the 21st richest. New management could expand operations to include these two very wealthy, close by jurisdictions.
About the Sale
Reason For Selling:
Sellers with train and familiarize the buyer with all aspects of the business.
Cash Flow Comments:
Bank financing available for qualified buyers.