High Cash Flow HVAC, Plumbing and Electrical Opportunity

APRIL 18, 2024

It’s been a great 20 year run for the owner of this high cash flowing, well established HVAC, Plumbing, and Electrical business. The owner is now ready to retire and pursue other interests. The company is located near a large metropolitan area in a desirable West Michigan community.

The company has grown significantly in recent years and has a unique niche in the construction side of the business which limits the amount of competition. It’s reputation for quality and excellent service is outstanding. The service side of the business includes both commercial and residential and has experienced incredible growth in recent years. The business has an outstanding website that provides customers with insight into the company’s capabilities.

The business comes with a management team already in place. A project manager, field project manager, service manager and HR manager run day to day operations while a team of 16 technicians and installers complete work in the field. Several technicians can perform both service and installation work allowing growth in either area if desired. The shop is non union and offers competitive wages and benefits. The owner currently assists with large project estimates and has agreed to stay on for a lengthy transition period if requested by the buyer.

The company has a diverse customer base and has worked with several major clients for years. The sales breakdown is approximately 50% HVAC, 45% Plumbing and 5% Electrical. Service is currently around 10% of sales but has grown dramatically since being started just three years ago. Previous commercial customers have proven to be a great source for new service business. With little effort, the service side of the business could be easily expanded.

Real estate is included in the sales price and includes two parcels currently in use by the company. If the buyer desires the real estate can be leased. Vehicles and equipment are late model and in good working order.

In the past five years the company has produced some outstanding financial results:

Average Annual Revenue (3 year) $ 4,900,000

Average Annual Net Income (3 year) $ 245,000

Average Annual SDE (3 year) $ 490,000

With a favorable SDE multiple of 3.7x the business is attractively priced at $ 2,600,000 with real estate. The seller envisions an asset sale where they retain Cash and A/R while retiring all liabilities. The buyer receives the goodwill of the business, all fixed assets, inventory and real estate. The sellers will hold a meaningful six figure note for a qualified buyer.

IF you are searching for a successful, in demand, great cash flowing business located in a growing area of West Michigan, this company represents an exceptional opportunity. For more information on this listing please contact Steve Huntley at 616 902 0898 or [email protected].