Summary: 
With 250 Maintenance Agreements This HVAC Company Has Been Serving Customers for Nearly 60 Years
Business Type: 
other businesses
Location: 
Nebraska
Price: 
$480,000
Sales Revenue: 
$904,811
Cash Flow: 
$239,449
Realestate Included: 
No
Inventory: 
$70,539
Employees: 
4
Internal Listing:: 
SER019
Reason for Sale: 
Aging Owner

With 250 maintenance agreements, this HVAC company has been serving customers for nearly 60 years. This business provides sales, installation and service of heating, air conditioning and air quality/handling systems for home, office and other usable spaces. They are .n authorized dealer for a well-recognized manufacturer. The current client base is 50% residential and 50% commercial, providing diversity of sales income. The 2014 Gross Sales were $904,811 and the Profit margin for that year was 26%. Products and services are available to clients within a 45 mile radius of the office, which is west of Lincoln, NE. Assets included with a purchase of the business equal $583,449. The business has an established website, a social media presence on Facebook and Twitter, maintains a blog on WordPress and utilizes newspaper advertising, reaching out to customers on a variety of platforms.

The Owner’s current responsibilities include bidding and office management and Owner’s spouse handles install billing, rebate, warranty and newsletter. The full staff includes 2 service techs, 1 installer and 1 office person who handles marketing, service billing and accounts receivable and payable.

Using the funding example above and assuming a two year average Cash Flow of $210,303, a Buyer could retain $132,628 as net profit even after servicing the loan payments. The loan is fully collateralized with the current equipment and vehicles.

Financial Overview
List Price: $480,000
Gross Sales
2015: $914,786 (Annualized)
2014: $904,811
2013: $833,306
Growth: $71,505 increase in sales from 2013 to 2014
Owner Profit/Cash Flow
2015: $306,201 (Annualized)
2014: $239,449
2013: $181,158
Profit Margin: 26%
Fair Market Value: $588,848
A $108,848 discount on the Fair Market Value was given due to geographical region.

Assets Included in Purchase $583,449
Equipment: $100,481
Vehicles: $344,873
Furniture and Fixtures: $28,348
Inventory: $70,539
A/R: $39,207

*Amounts may vary*

Business Information
Year Established: 1957; Current Owner since 1994
Location and Service Area: Eastern side of Nebraska, just west of
Lincoln, NE, serving customers county-wide within a 45 mile radius
Client Demographics: 50% residential/50% commercial; 250 maintenance agreement customers
Lease: Seller will rent the space to Buyer for $2,500/month
Reason for Selling: Aging Owner
Employees: 2 service techs, 1 installer, 1 office (marketing, AR, AP
and service billing and could assume work of Owner’s spouse –
install billing, warranty, rebate, newsletter)
Seller Training Period: 90 Days
Current Owner’s Responsibilities: Bidding and office management

Funding Example
Purchase Price: $480,000
10% Buyer Down Payment: $48,000
15% Seller Financing: $72,000
75% Bank Loan: $360,000

Bank Loan is fully collateralized by equipment and
vehicles.

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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