Business Description
Founded in 1970 and located in Northern VA, this company is a full-service heating, air conditioning and ventilation ( HVAC ) company servicing homes (95%) and businesses (5%). Over the last 5 years, revenues have averaged in excess of $2.7 million per year and adjusted EBIDTA has averaged over $500,000 per year. 35% of revenues are derived from service and repair, 35% from replacement, 15% from service agreements and 15% from new construction (less in recent years). The company has earned an excellent reputation and has won many awards. It is a premier dealer for 2 well-know HVAC manufacturers and services all brands of equipment. The company has over 1200 maintenance agreements and over 25,000 active customers. The company has a stable, highly-trained and certified technician workforce (all employees - no subs).12 service vehicles, $50K of inventory and a full sheet metal shop are included in the assets.
About the Business
Year Established:
1970
Number of Employees:
15
Facilities:
The busines is headquartered in an approximately 7,700 square-foot office/warehouse condo conveniently located near major highways. Rent is $7,700 per month, triple net. In addition to the warehouse space and sheet metal shop, there is office space on the first and second floors, a training room, mailing room, two bathrooms, (one with a shower), and a kitchen/lunch room. There is plentiful parking.
Market Outlook/Competition:
Studies show that the $13.7 billion dollar US HVAC industry will grow 4.5% annually through 2013, driven by a recovery in residential housing and government incentives to buy more energy-efficient systems (10% credit with a cap of $500 for energy-efficient systems, 30% uncapped for renewable energy-based systems). Because of the recession and tight credit market, many homeowners have put off needed HVAC equipment replacement. Their HVAC equipment continues to age, causing pent-up demand waiting to be released.
About the Sale
Reason For Selling:
Retirement.
Training/Support:
Sellers with train and familiarize the buyer with all aspects of the business.
Cash Flow Comments:
EBITDA: $465,000
Seller Financing:
Bank financing available for qualified buyers.
