Thriving Air Compressor Sales and Service Company

We are pleased to offer an exceptional business opportunity: a B to B air compressor company offering sales, service, and turnkey solutions to its broad list of long-time, established commercial customers. The business, operating from a 5,800 square foot leased facility in a desirable, smaller town in Eastern Michigan, serves a variety of industries for all their powered air needs from planning, to installation, to continued maintenance. Now, after 20 years in business, the owner of this cash flowing company looks forward to retirement after a meaningful post-close transition period for a new owner-operator.

The main 2,800 square foot building houses workspace for three highly-skilled, well-paid, non-union technicians who have been given the training and autonomy to handle any and all aspects of the business. The facility has enhanced electrical systems necessary to test equipment in house. There also is a front-end retail desk, and parts storage area. A secondary outbuilding offers 3,000 square foot of overflow storage for any large equipment, trailers, and parts inventory. Included in the sale are multiple work trucks, portable compressors, a scissor lift and a fork lift.

The layout of the facility makes compressor repairs a breeze, while office space in the front of the building allows an owner-operator to remain close to the business. The real estate can be leased at a favorable market rate with flexible terms offering additional benefit to a buyer.

The business boasts a diverse customer base with three larger customers and scores of smaller ones along with a robust list of vendors on the books. Annual revenues over the past several years have averaged $1.82 million, with 2023 revenues exceeding $2.0 million. Over the same period, the business has averaged an impressive annual SDE (SDE = seller’s discretionary earnings, the normalized, weighted, historical cash flow of the business available to pay an owner-operator and service debt) of nearly $500,000.

The business is being offered for $1,920,000 million. The listing price is based on a competitive SDE multiple of 3.5x (3.5 x $492,000 = $1,722,000 + $200,000 of inventory = $1,922,000). Included in the listing price is more than $200,000 of active, saleable, cost-basis inventory, vehicles and equipment, all fixed assets, transition training, and the goodwill of a business which boasts a 20-year history of successful operations. Additionally, a meaningful sellers note will be available to qualified buyers.

The seller envisions a cash free – debt free asset sale in which the seller retains cash and A/R while retiring all liabilities. For more information on this must-see business opportunity, please contact Ryan Johnson anytime: 269-338-9809 or [email protected].