Res/Comm Plumbing & HVAC, MUST SELL! Largest in their Area, Well Known

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Owners want to Retire, Easy Access to High End Communities & West Denver
Asking Price:
$390,000

Gross Revenue:
$1,100,000
Cash Flow:
$233,000
EBITDA:
$233,000
Inventory:
$11,000
included in asking price

FF&E:
$34,000
included in asking price

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Business Description

26 Year Old Colorado Residential/Commercial Plumbing and HVAC Company

The Sales Price has been lowered to 390K with earnings of 190K with additional flexibility for potential buyers that either don’t need a bank or have industry experience or both. They have been taking more time off over the last 2 years totaling 9 weeks each which is why their numbers are down a little. The sales price was $550K and is now $390K to make up for this. They are still the largest HVAC/Plumbing Co in their area with many ways to grow this business. The owners have been slowing down preparing for retirement. They will offer a full transition.

26 Year Old Colorado Residential/Commercial Plumbing and HVAC Company

The trailing 12 months earnings were 179K from revenues of $1.1M to June 30th. 2018’s earnings were 201K from 1,18M in revenues. The two year average is 190K in earnings. One of the owners spent most of September and the other some of September in North Carolina because her Brother’s house was flooded. One of the owners spent most of September and the other some of September in North Carolina because her Brother’s house was flooded. The owners take 9 weeks off a year because they have been acting semi-retired for the last 2 years. This is having an impact that a new buyer can fix immediately. The work is there, they just don’t want to put in the time. 2017’s earnings were 264,137 from revenues of 1,283,921. The owners believe 2018 would have looked the same as 2017 except for the impact the September NC floods had. They have been profitable all 26 years including the 2008 to 2012 downturn. The seller is asking for 390K.

This company provides a full range of Plumbing and Heating services. They are also recognized as experts in Radiant in floor heating and tankless water heater systems which are part of a “hydronic heating system” popular in high end homes in Colorado. They provide maintenance and repairs also which helps with recurring revenues. This company provides both commercial and residential services for new construction or remodels. They have seven full time employees including two master plumbers whose licenses a new owner can use.

The buyer will get approximately 45K in current value hard assets made up of 34K in equipment and another 11K in inventory. The company has a great reputation with a long-standing and recurring customer base.

The owners are retirement age and will help the new owner transition the business for as long as they would like and are confident that it will be a smooth transition. The company, not the owners, has the BBB A+ rating, customers, and reputation. They will sign a non-compete and offer full indemnifications.

Location: West Metro Denver Area.

The sales price has been lowered to 390K which includes all assets debt free. The seller will be especially flexible to any potential buyers that have HVAC and/or Plumbing experience. The seller will be keeping their cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. It is an S Corp so this can be either a stock or an asset sale.

Brief Overview and Deal Points:

They specialize in high end custom residential plumbing and hydronic radiant heat(watch the video in the link toward the top of this email). Their mix is mostly residential that is 20% service/maintenance, 40% Plumbing, and 40% Radiant heat which is mostly Hydronic in nature. Hydronic heat uses a boiler and heated water in tubes which provides a more efficient heating system that is quieter and more consistent. They also take regular service calls for plumbing and some HVAC. The company has grown historically based on their reputation and the growth of population and building in their market. They have a normal internet presence with some SEO and website but do not spend a lot on ad

About the Business

Location:
Morrison, Colorado
Year Established:
1993
Number of Employees:
7
Real Estate:
Leased
Building Sq. Ft.:
3,200
Rent:
$3,136.00 Per Month
Facilities:
The business is located near I-70 which gives them easy access to several high end Colorado Mountain communities, and West Metro Denver. The facility is 3,200 square feet with 2,400 square feet of warehouse and 800 square feet of office space. The current lease has ½ year left on it. The monthly rent is 2,700 plus CAM expenses of 450 per month.
Market Outlook/
Competition:
They specialize in high end custom residential plumbing and hydronic radiant heat(watch the video in the link toward the top of this email). Their mix is mostly residential that is 20% service/maintenance, 40% Plumbing, and 40% Radiant heat which is mostly Hydronic in nature. Hydronic heat uses a boiler and heated water in tubes which provides a more efficient heating system that is quieter and more consistent. They also take regular service calls for plumbing and some HVAC. The company has grown historically based on their reputation and the growth of population and building in their market. They have a normal internet presence with some SEO and website but do not spend a lot on advertising. They have long term relationships with several builders and with a warranty company. The population of their entire market is mostly affluent and has and is expected to continue to grow at an impressive rate.
Growth & Expansion:
Growth and Expansion: A new owner can increase advertising, increase their service area, work harder than the current owners, add forced air, add fire suppression systems, and/or become solar experts. 90% of new custom larger homes in their area use hydronic radiant heat but most of the older homes can’t be retrofitted to this. Plus, the rest of their market uses forced air which they do not currently provide services for. A new owner could add a duct expert and easily add forced air as a service they provide. Fire suppression systems are now required for homes over 4,500 square feet in their market. Solar is becoming a big deal in Colorado with most of the homebuilding now offering it as an option. There is a very large opportunity in the solar industry to companies with their expertise.
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About the Sale

Reason For Selling:
Retiring
Training/Support:
The owners are retirement age and will help the new owner transition the business for as long as they would like and are confident that it will be a smooth transition. The company, not the owners, has the BBB A+ rating, customers, and reputation. They will sign a non-compete and offer full indemnifications.
Seller Financing:
15%

Listing Info

ID:
1585202
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Business Listed by

Jeff Chapman Eisnaugle

Business Broker Colorado
License# 100054090

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