HVAC Business For Sale

Location: Growing Area Near Houston, TX
 

This HVAC business for sale was established in 1997. The current owner acquired it in the fall of 2001 and has been managing the growing business since. The owners have professionally managed this HVAC business in a way that has positioned it well in the area to which it provides service. It has a reputation for quality service and dependability.

In addition to being well-managed, the financial opportunity of this HVAC business for sale is attractive.  It's return on investment (ROI) is attractive, it's cash-on-cash (COC) return is attractive, and the math when financing the purchase of the business works well. Quite simply, it's a great opportunity. It's books prove it's financially successful performance and they clearly illustrate that it is characteristically a professionally managed HVAC business. Revenue has continued to increase. Profitability has continued to increase. Short-term and long-term outlook is strong. Put frankly, this deal works and it works well.

From a personal life "compatibility" perspective, the location is very attractive and it's short-term and long-term outlook is one of growth. It has a "hometown" / smaller town feel but yet it has proximity to the big-city resources offered by metro area Houston and it is benefitting from Houston's growth and expansion. Provided below is a personal letter from the owners which further describes life in the area.

Staff
This HVAC business for sale has 5 employees.
     Full-time employees: 4 at 40 hours per week
     Part-time employees: 1 at 32 hours per week
There are 3 full-time HVAC techs who perform mainly service work and there is one full-time HVAC tech who is primarily used for installs. The part-time employee (32 hours per week) works in the office. Additionally, one of the owners (the wife) takes care of all bookkeeping and payroll one day per week (typically on Fridays). The sellers have agreed that she will remain after the sale for a period of time to assist the new owner with the transition of training a replacement person to take care of the books and payroll. Note that she works only one day per week but she is paid for 40 hours work per week. The business's financials already (of course) reflect the salary/payroll expense for compensation of a new, replacement bookkeeping/payroll employee (easily performed one day per week).

Vehicles
The HVAC business has three service vehicles (vans), all of which are well-maintained and well-equipped for HVAC technicians service calls and installs.

Real Estate
The building that the HVAC business for sale operates out of is included with the sale. It is an approximately 2,400 square foot metal building and it is situated on a paved highway. Lot size according to CAD is 1.46 acres.

The property is ideally located in the market to which it serves with an approximate drive of about 15-20 minutes to the majority of it’s clientele base in the immediate area.

Market
Attractive demographics as of much of the customer base are second homes owned by “week-enders”. The owner indicates that the business services an area that is within a short drive of about only 20-30 minutes from the shop. He has also says that the area he serves is only a fraction of the marketable area that is within a reasonable driving distance and that expansion of the company’s revenue by providing service to all of the area would not be too difficult. Basically, he hasn’t wanted to pursue additional business in the area because he feels he has had enough in a smaller proximity to where he lives. The reasonably close proximity of a larger marketplace is much larger than the smaller area that the company currently services.

Customer Base
As shown on the “Sales by Customer” tab of the financials excel file, the company’s revenues come from approx 600 customers. Revenue is attractively diversified as the largest client (as of July 2008) only represents about $16,500 in revenue which is only about 2.5%-3% of the company’s total revenue. This is attractive and wise diversification as the company’s success is not heavily dependent on any particular client(s).

Residential Clientele - approx 95%
Commercial Clientele - approx 5%
The company’s clientele mix consists mostly of residential properties but it does some commercial work. Because of the area that it services, it’s primary focus is on residential service. The company has performed installation of HVAC systems in new homes being built, but the owner states that over time, the company has moved away from new installs and has been focused on service work. He has indicated that new installs work is available and could easily be increased. He has also indicated that service work to local commercial customers could also be increased.

Reason for Selling
The owners are ready to retire. After the sale of the business, they plan to permanently remain in the area as they consider it home. They make it clear that they enjoy the quality of life of the area, and are happy living there.

Post-Closing Transition
The time that the owners are willing to remain after the closing to train/assist the new owner is negotiable, but they are willing to remain long enough to ensure a smooth transition of the management take-over by the new owner(s).

Misc
Sale includes all assets of the business plus the related property which is personally owned by the Sellers (they lease it to the business as reflected in the financials). Not included in the sale are cash accounts which are retained earnings not yet distributed to the sellers. If the buyer wishes to include retained (undistributed) earnings with the sale, the sales price will be increased on a dollar-for-dollar basis of the cash amount at closing. Inquire for more details or for clarification if needed. Also not included are miscellaneous personal items mostly related to the owner's hobby (short wave radio enthusiast) which are stored in a separated storage room in the building.

The banking ratios work well on this opportunity. The cash-on-cash returns are very attractive and the return on investment is even more attractive. 

Letter from Owners:
Our business has grown every year since we purchased it in 2001. We thought this would be a part time job, but the area was in such a need for a quality A/C company that it blossomed into a lucrative business. We started out as just a husband and wife team and in 2003 our son moved here from Arkansas and we decided to grow the business. We have grown from the 2 of us, to 7. A very helpful asset of to our success is our office building versus working from a notepad and mobile phone and from the back of a pickup truck like so many other HVAC services do. We answer our phones and we show up when we say we are going to. If we are running late, we make a courtesy call to inform and stay in good relations with our customers. Our goal is to give our customers quality workmanship and service at a reasonable price. We stress quality in everything we do and our growth has reflected the success of that business practice.

The potential for growth here is great, we have only focused our attention in a certain area which only covers about a 15-20 mile radius. If we were to increase the coverage to include other reasonably close areas, I believe our business could double  in size. I say this because an easily serviceable area close to us is one of the fastest growing in the state according to recent census. A buyer who wishes to grow even larger could expand the coverage to a couple of other relatively close areas that are attractive. This would probably increase commercial customers and provide access to all of the related areas that we are near. We have not focused on these areas because we wanted to stay small, but if you want to grow the potential  is there. At the right time in the transaction (due to confidentiality issues), we will be happy to provide specifics on the areas to which I am referring.

Personally, we can't imagine living anywhere else than here. We built our home in 1988 and came to the area every weekend for 13 years. It was our way of recharging our attitudes and batteries. We moved here full time in 2001  when we purchased the business, and we plan on staying here permanently to retire. Residents of this area are friendly and have a laid back attitude towards life. It’s almost like stepping back in time 20 or 30 years, people still leave their doors unlocked, or they have key outside for you to use if you need to get in. People wave at you and stop to say hello when you pass on the street. A good percentage of the people here are week-enders, and it seems like that once they get here they leave their hurry up and stressed out attitudes at home. It's a great place to live and we love it here.

CONFIDENTIALITY
For reasons of confidentiality, other than the information located on this page, further information about this company, including it's name and location, will be provided only after the confidentiality agreement located here has been completed, signed, dated, and faxed to us at . Further information about the process through which the Broker coordinates the sale of buy-sell transactions will also be provided upon inquiry.

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