Highly Successful Air Conditioning & Electrical Contracting Business For Sale

Business description

Business Description Summary:

This business was started by the current owner whose experience in airconditioning/electrical services had been obtained working for large, multinational companies engaged in this type of work. In 2001, on the encouragement of one of the customers he was dealing with, he decided to commence his own business. The business has been based, and grown since then on a basis of good service and quality workmanship.

Originally working on his own, the owner has grown the business which today employs the services of six to eight employees/sub-contractors.

The business has been put on the market as the owner wishes to pursue other business interests, as well as some construction projects.

VENDOR FINANCE WILL BE CONSIDERED TO AN APPROVED BUYER.

Operations:

The business operates evenly throughout the year with a minor increase towards the Christmas holidays. There is always enough work to keep the employees and core sub-contractors busy, and the additional seasonal work is usually accomplished by just working slightly longer hours.

The business operates from 8.00 a.m. to 5.00 p.m. Monday to Friday, but will attend call outs outside these hours. In these cases, call outs are charged at double time with a three hour minimum, and an out of hours service fee. Because only a small proportion of the customer base is domestic, such call outs are rare, perhaps five or six p.a.

Contractors call in daily for work scheduling.

The business is currently converting to an electronic custom written system tp provide website based communication with customers and staff. It is being implemented to cut down on administrative processes and will provide significant savings
Market / Customer:

The customer base is 90% commercial, consisting mainly of factories, large multi-storey buildings, multi-branch car dealerships. The balance of 10% of the work is domestic and normally undertaken on behalf of the owners or offices of corporate clients. Domestic work is neither sought nor encouraged.

Wherever possible corporate clients are placed on ongoing maintenance contracts after the initial installation is completed

This type of contract work currently generates approximately $120,000 p.a. in revenue.

Geographically the target market is the whole of Victoria, because of multi-site customers. However, most work is in greater Melbourne and country work is only undertaken for existing customers or a business with a multi-site requirement involving country locations.

As stated earlier, the business has been built on reputation, workmanship and service and virtually no marketing is undertaken. The company has a one line entry in the Yellow Pages, and its own website. Even the vans do not have corporate advertising or identification.

A significant generator of work is builders and office fitout contractors, who provide a constant flow of new work. The occupiers are then called upon and signed up as new customers, either for service or casual work.

The key to successfully building the business in this manner has been:

• Customers and potential customers have easy access to the business
• Work is always conducted on time
• All promises are adhered to

Once this formula is in place, price is a secondary consideration.

Products / Services:

Airconditioning: Installation
Service

Electrical Installation
Service

Data cabling Installation
Service

CBus Installation
Upgrades and changes

Automated Aircon Controls: Johnson controls. The company is one of only five to six distributors of Johnson controls in Victoria. This is a major growth path for the future of the company, and is currently earning revenues of approximately $150,000 p.a. It involves the installation, modification and service of energy efficient use of airconditioning installations. The company is currently working on multiple supermarket stores, converting them to this type of control system.


Premises:

The business currently operates from the home of the owner, but will soon move to factory premises, that he is constructing for other business interests.
Plant/Equipment / Fittings:

Equipment, ladders, vacuum pumps, tools etc, to a value of approximately $10,000 and stock of approximately $15,000 is included in the asking price.

Management / Staff:

The owner spends approximately 50% of his time on the tools and 50% doing quotes, administration and site visits. His wife assists with invoicing from service dockets and typing up quotes from the company’s templates.

Sometimes large companies are used on large projects and this provides flexibility as they can fill in whenever required.

To receive additional information on this business, please contact Steve Lentin below.

Property information

Location:

Fully Transportable

Premises details:

Currently operating from home facility

Business Operation

Expansion potential:

Expanding rapidly: virtually no limits.

Trading hours:

Standard 5 day week.

Employees:

7

Years established:

9

Other information

Support & training:

A generous hand over period will be granted, if required.

Furniture / Fixtures value:

$10,000 (included in the asking price)

Home based:

This business can be run from home.

Relocatable:

This business can be relocated.