Co Resort Town HVAC, Price Drop To Less than 2x Earn, Sp Now Only 415k

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Recurring Customers, Good Technicans, Great Reputation
Asking Price:
$415,000

Gross Revenue:
$1,064,000
Cash Flow:
$200,000
EBITDA:
$200,000
Inventory:
$35,000
not included in asking price

FF&E:
$175,000
included in asking price

Real Estate:
 Not Disclosed

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Business Description

PRICE DROP to $415K from $445k which was dropped in January from $540K, plus 75% of his $50K cost of inventory which is $35K on top of the $425K for everything. That is a 125K price drop in 3 months. This is now approximately 2 times the 2017 earnings and less than 2 times the 2 year time weighted earnings. He will help in transition for up to 4 months and will offer consulting longer term if a new owner wants his help. He believes this business can get back to the $3.5M in revenues it did before the down turn with a new owners energy and his model.

He will also sell the parts supply company which is now profitable for 75% of his actual cost to inventory. The “Supply House’s” inventory is $90K. It is generating $400 a day on average in new sales, and helps him to get a great cost of supplies for the HVAC Co that he can’t get anywhere else. He will sell the Supply Company for $67,500. The supply house made $15,000 last year and is growing steadily. It also makes All American more profitable.

He will lease or sell his building which has the HVAC Co on the main floor and the Supply Company on the 2nd floor. The sales price will be 295K. He bought it for 235K and has over 50K in upgrades to it. Bottom line is a buyer can buy the main business with its inventory and supply business for $517,500 now and lease the building or buy the building with both businesses for a total of $812,500. This is a great price for an established business with a history and model that has tremendous growth built into it.

12 Year Old Colorado Residential/Commercial HVAC Company

2017’s earnings were 200,058 for the HVAC Co not including a $15K profit for the Supply House on revenues of 1,064,392. The earnings for 2016 were 282,229 with revenues of 1.28M for the HVAC Co. He is working on the PL for the HVAC Supply Co but estimates it will add approximately 100K in revenue and 15K in profit to these numbers and is growing. He opened the Supply Company as separate parts counter business in January of 2016 to help control his parts cost for his main service business.
The owner brought in a partner that was caught stealing back in 2011 and 2012. He had to go through the whole 2 ½ year court process and it affected him both financially and mentally. It resulted in him wanting to sell and to do something else. The business went from 3.5M in revenue in 2010 to bottoming out in 2012 at 982K because of this distraction. He is turning down some large projects because he needs working capital to grow the business again.

The buyer will get approximately 250K in hard assets made up of almost 200K in equipment including 7 vehicles and another 50K in inventory for the HVAC business only(Not the Supply Co). The new supply/parts business will be sold separately at 75% of his cost of inventory.

The company has a great reputation with a long-standing and recurring customer base. Technicians with strong technical and sales ability with sales processes in place. The company has a client generated online review process that drives a lot of referrals and recurring revenue. They also have a lot of yearly maintenance contracts which they charge customers 240 dollars per year for ongoing maintenance tune ups which also helps generate revenue all year long and helps keep the clients loyal.
This is a business that needs an owner with the working capital to grow the business again. It has the employees, equipment, reputation, model, and customers.

Location: Central Mountains of CO near a Major Resort Town
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The seller is asking for 415K plus 75% of his cost of inventory which is currently estimated to be $50K($35K added to the price). This price is approximately 2 times the earnings. He will carry up to 20% of the sales price. He will be keeping his cash and accounts receiva

About the Business

Year Established:
2005
Number of Employees:
4
Real Estate:
Owned
Facilities:
He will lease or sell his building which has the HVAC Co on the main floor and the supply company on the 2nd floor. The sales price will be 295K. He bought it for 235K and has over 50K in upgrades to it. Bottom line is a buyer can buy the main business with its inventory and supply business for $650K now and lease the building or buy the building with both businesses for a total of $945K. This is a great price for an established business with a history and model that has tremendous growth built into it.
Market Outlook/
Competition:
The company has a great reputation with a long-standing and recurring customer base. Technicians with strong technical and sales ability with sales processes in place. The company has a client generated online review process that drives a lot of referrals and recurring revenue. They also have a lot of yearly maintenance contracts which they charge customers 240 dollars per year for ongoing maintenance tune ups which also helps generate revenue all year long and helps keep the clients loyal.
Growth & Expansion:
Growth and Expansion: The company can grow by increasing advertising, increasing working capital, and by just taking more jobs. They turn down work because of working capital and the need for more employees every day. There are many ways a new owner can improve this business. The current owner has been tied up in court and to drained to grow the business over the last couple of years but loves the industry, his employees, and the company. He has started working harder again in the last quarter of 2016. He is excited to teach the new owner how to grow this business. The business can easily expand its coverage area with a better facility in the Silverthorne area. They turn down business in Vail and along the I 70 corridor between Vail and Silverthorne all the time. The company used to have 3 other separate divisions made up of plumbing, supplies, and construction and shut it all down when he found that he had to fight his partner in court. He said the demand is still there and it is up to the new owner how big they want to be. He peaked at 3.5M in revenues and said he was easily on his way to 5M when this happened. He believes that he can show a new owner how to expand both the services and territory to get back to 3.5MM or more within 3 years.
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About the Sale

Reason For Selling:
Health reasons
Training/Support:
The owner will sign a non-compete. He is willing to transition the business and can teach the new owner how to run the business and how to grow it. He will consider staying on also. Industry experience is recommended but not necessary especially if you decide to include him in either the new ownership structure or hire him beyond the transition. There are no master licenses required and he and his employees have the necessary certifications so the owner just pulls permits which he can teach the new owner how to do. Vendors also offer classes if the owner wants his own certifications.
Seller Financing:
20%

Listing Info

ID:
1467252
Ad Detail Views:
432

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Jeff Chapman Eisnaugle

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