Summary: 
Owner Only Responsible for Bidding – Performs Less Than 5% of Labor
Business Type: 
other service
Business Type: 
service
Location: 
Iowa
Price: 
$315,000
Sales Revenue: 
$776,238
Cash Flow: 
$108,017
Realestate Included: 
No
Inventory: 
$19,073
Employees: 
3
Internal Listing:: 
SER016
Reason for Sale: 
Second chapter

Description
Current Owner is only responsible for bidding – performs less than 5% of labor. This family-owned business in Western Iowa sells, installs and services heating and cooling systems in residential and light commercial locations. Sales and installation services are available for heating and cooling systems, thermostats, air cleaners and disinfection systems. New construction and remodel installations make up a portion of the annual gross sales. In 2014 the business generated slightly higher sales with repair and replacement services resulting from local hailstorm damage. The business has high SEO rankings with Google, helping to attract new clients.

Profit margin is 13%. Business is fully staffed with a Service Manager, one Installer and one part time Office staff responsible for AP and AR. A new Owner could walk into the business, learn the bidding process from the Seller during transition and continue to let the business operate as is or perform an additional percentage of the labor and potentially expand the business. Plumbing or electrical services could also be added.

Using the Funding Example above and an annual Cash Flow of $101,514 (average of 2013 and 2014), a Buyer could retain a Net Operating Income of $51,370 after annual debt service and a 163% Return on Investment on the $31,500 down payment in the first year of operation.

Financial Overview
List Price: $315,000
Gross Sales
2015: $615,169 (Annualized)
2014: $776,238
2013: $557,698
YOY Growth/Sales Trends: Some of the increase in gross sales from 2013 to 2014 attributable to hail damage work. 2013 and 2015 Gross Sales better reflect normal operating income.
Owner Profit/Cash Flow
2015: $169,209 (Annualized)
2014: $108,017
2013: $95,012

Assets Included in Purchase: $316,440
Equipment and Vehicles: $192,265
Intangible Assets: Energy Star Certified
Inventory: $19,073
Accounts Receivable: $35,102
Secured Purchase Orders for Future Work: $70,000

*Amounts may vary

Business Information
Year Established: 1992
Location and Service Area: Western Iowa and Eastern Nebraska
Customers Served: Residential and Light Commercial
Population in Service Area: ∼ 20,000
Reason for Selling: Second Chapter
Employees: 1 Service Manager, 1 Installer, 1 PT Office Staff (AP & AR)
Seller Training Period: 90 Days
Growth Opportunities: Add either plumbing or electrical services.
Current Owner’s Responsibilities: Bidding - Owner performs less than 5% of actual labor.

Funding Example
Purchase Price: $315,000
10% Buyer Down Payment: $31,500
10% Seller Financing: $31,500
80% Bank Loan: $252,000

The Bank Loan is fully collateralized with current Business assets.

Next Steps
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.

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