Business Description
The Company is a Michigan-based dealer, installer, and servicer of plumbing and HVAC systems and equipment. It provides plumbing service on any system for commercial, residential, industrial, and institutional customers, and it sells and installs furnaces, air conditioners, boilers, stoves, fireplaces, sinks, faucets, toilets, and more.
It operates from two locations including an 8,400 sqft. office/showroom for administrative operations and to display products for walk in customers and a 20,000 sqft. warehouse for equipment and supplies which also houses the Company's sheet metal fabrication Shop. The Company has 22 full-time employees, including 4 active principals, and it has enjoyed a 94% retention rate during the last several years.
About the Business
Year Established:
1959
Number of Employees:
20
Facilities:
The Company's facilities include an 8,400 square foot office/showroom space to house administration activities and assist with equipment and fixture sales for walk-in customers and a 20,000 square foot warehouse space for inventory and supplies which also contains the Company's sheet metal shop. Both facilities are rented from a related party with estimated fair market rent rates of $5,000/month for the office/showroom and $2,700/month for the warehouse.
Market Outlook/Competition:
Account Receivable (A/R) Collections Stronger than Industry Norms: The Company s receivables collected, on average, within 33 days, which is 50% shorter than the industry average. Strong Historical Sales Growth: During the Great Recession experienced in the US over the last few years, the Company experienced compounded annual sales growth of 18% from 2009 to 2011. Loyal Customer Base: The Company maintains a client base of over 3,000 recurring clients from a wide range of different industries. Recurring customers represent 75% of annual revenue, and no single customer represented greater than 15% of sales during any of the last three years. Proprietary Expertise: Over five decades in the industry and a team of accredited, expert technicians provide the Company with extensive experience and uncompromising industry know-how.
About the Sale
Reason For Selling:
Some of the Company's owners are ready to retire.
Training/Support:
Several owners are willing to stay with the Company during a transition period in order to ensure a seamless transfer of ownership.
Cash Flow Comments:
EBITDA: $331,000
