Very Cash Flow Strong Plumbing & HVAC Business For Sale

Business description

Our client is successfully operating an HVAC facility that provides service and replacement via a nationally recognized franchise. In addition, plumbing repair, service and installation is provided for new installations. The target market is primarily residential, with commercial being only 20% of revenue. The business is well established for 20+ years with an excellent reputation and has weathered several cycles in the construction industry over the years. Most recently, the company acquired franchise rights, which has shown tremendous upside potential in the past year. Nevertheless, the company had experienced a slight decline in revenue due to the overall economic activity in the past two years, however, seller’s discretionary cash flow remains strong. The business is attractively priced, and a buyer can recoup his initial cash outlay of only $700,000 in less than a year. Free cash flow (after debt service/ acquisition) is approximately $550,000, with significant upside potential. The business is pre-qualified on an SBA lending basis, there is no bank debt to be assumed; and the assumption of $250,000 A/P is largely offset by A/R of $200,000 (all current). A buyer will obtain a return on down payment of 80%, on an after-debt service basis! The owner is motivated to make this an easy transfer and will assist a buyer in all aspects of the transfer. However, while the owner is selling, he could also envision a partnership with a qualified buyer. The long-term, loyal employee base will stay with the business and will ensure the continued growth. *** ALL DATA IS BASED ON SIGNED TAX RETURNS

Property information

Real Estate:

Lease

Lease terms:

To 2011

Location:

Very nice, located close to major highways

Other information

Expansion potential:

Excellent, in particular with franchise in place and start-up costs completed

Competition / Market:

Company has a very strong position in its area.

Support & training:

Yes, 6 month transition time

Reasons for selling:

Retirement Or New Partner

Trading hours:

Regular

Financing available:

Buyer Cash $700k, Seller Note $275k, Bank Loan Approved $1,600k

Furniture / Fixtures value:

$165,000 (included in the asking price)

Inventory / Stock value:

$190,000 (included in the asking price)