Res/Comm Plumbing & HVAC, LOWEST PRICE ONLY 425K! Well Established

Contact Seller
Owner can be Full, Part or Absentee. Hired Manager w Masters License
Asking Price:
$425,000

Gross Revenue:
$1,187,000
Cash Flow:
$233,000
EBITDA:
$233,000
Inventory:
$11,000
included in asking price

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

Share this business:

Business Description

26 Year Old Colorado Residential/Commercial Plumbing and HVAC Company

This company has Lowered its Sales Price as of 4/15/2019 to 425K with earnings of 233K. This makes the price only 2.25 times the earnings. They have been taking more time off over the last year and decided to hire a manager that has a masters license and can work in the field. He starts around mid March. This means that the buyer can be full time, part time, or absentee.

2018’s earnings were 201,168 from 1,187,165 in revenues. The two year average is $233K 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. This had an impact on bidding especially in September which had a small impact that can’t be put into an accurate one time add back. 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 425K.

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. They also have a manager they like that they have interviewed that can take over for the owner that bids and overseas the work for a new owner if they want that for an hourly rate or very reasonable salary.

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 just been lowered to 425K from 645K which includes all assets debt free. 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 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 and Expansion: A new owner can increase

About the Business

Year Established:
1993
Number of Employees:
6
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.
Contact the Seller

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
Ad Detail Views:
0

Contact the Seller
Please confirm you're not a robot
Contact the Seller
Business Listed by

Jeff Chapman Eisnaugle

Business Broker Colorado
License# 100054090

 Show Phone Number

View My 13 Active Listings
U.S. Census Data for Jefferson County, CO
Age

Gender

Ethnicity

Source: Decennial Census (2010), United States Census Bureau.

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.

U.S. Community Survey Data for Jefferson County, CO
Income

Education

Source: American Community Survey (2010-2014), United States Census Bureau.

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.


Similar Listings


Report an Issue The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms & Conditions.