Dallas-Fort Worth Absentee Commercial B2B HVAC-Plumbing Services 20053

This Dallas Fort Worth Texas Company is a 20+ year old full-service repair, replacement and maintenance Plumbing and HVAC Company serving the commercial market including data centers, standalone commercial buildings, mid to high rise office buildings, senior living centers, healthcare centers and multi-family buildings. The customers are primarily brand name companies and include banks and financial institutions, commercial real estate companies, technology companies, technology training, senior living, healthcare centers, and multifamily apartment owners. The Company focuses solely on repair, replacement and maintenance contracts and does no new construction work. The sales mix includes maintenance contracts, time and material work, quoted jobs (bid work), and ongoing repair and replacement for existing customers. THE COMPANY DOES NO NEW, GROUND-UP CONSTRUCTION.

The Company's employees run all day-to-day operations and the owner's only involvement relates to providing financial and managerial support, such as approving a large capital purchase to update equipment (eg replace fleet of vehicles).

Sales are primarily repeat, recurring due to excellent long-term relationships between employees and clients. The Company's employees run all day-to-day operations and the owner's only involvement relates to providing financial and managerial support, such as approving a large capital purchase to update equipment. Sales are approximately split as 60% HVAC and 40% Plumbing, although it varies by year. Plumbing has no seasonality. HVAC Repair and refrigeration has a heavier summer season. The Company does no new, ground-up construction. The HVAC and plumbing service niche allows the Company to have repeat revenue streams with predictable and high margins.

The Company has significant service capabilities including the ability to service and replace Roof Top Units and chillers, back-flow testing, hydro jetting, enviro chambers, all controls, cooling tower replacements, medical gas certification, video inspection, and refrigeration.

The business is on autopilot with trusted senior management operating the business. The owner is minimally involved in the business due to the trusted and capable management team. The business has ~140+ active, diverse customers with the top 10 customers accounting for approximately 55% of sales.

The owner plans to continue focusing on other business interests in preparation for retirement. The business has excellent books & records and can prove all sales & expenses.

Facilities: The business occupies approximately 24,000+/- SF in a mixed use industrial area with easy access to major thoroughfares. A long-term lease at $8,175/mo with options, is available to a qualified purchaser.

Competition: The industry is very competitive. Most companies competing in this space are similar sized or much larger. Some competitors offer a wide range of services or provide services in specific market niches. The Company focuses on creating relationships and bonds between Company employees and their customers based on quality work, fair pricing, integrity, and reliability.

Most competitors focus on new construction. The Company focuses solely on repair, replacement and maintenance contracts and does no new construction work. Focusing on this niche generates repeat revenue streams with predictable and high margins.

Growth & Expansion: The Company's primary marketing strategy is to leverage its relationships with people in their industry and the real estate industry to obtain bid and quoted work as well as maintenance contracts. The Company does no advertising and relies on referrals from existing customers, relationships with building managers and real estate company executives plus referrals from customers of its affiliates. Sales are made through internal sales staff.

The HVAC and plumbing service niche allows the Company to have repeat revenue streams with predictable and high margins. The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as: 1) Add non-HVAC/plumbing trades and offer cross-sale service, 2) Add additional salespersons, 3) Upgrade CRM, 4) Raise prices, 5) Scale into other geographic markets, 6) Increase local and regional market share by pursuing strategic acquisitions, 7) Improve website and social media presence.

Support & Training: Seller will train a buyer for 4 weeks included with the purchase price. Operation training will be provided by the management team. The seller is willing to provide additional training or remain in an ongoing role at mutually agreed compensation.

Reason for Selling: Preparation for retirement.

Purchase Price: The asking price for the assets of the business is $7,000,000 with $1,300,000 CASH down payment and balance financed as an SBA7(a) loan. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the Seller. All financing is to be personally guaranteed by the individual principals of a prospective purchaser. THE SELLER PREFERS TO SELL FOR ALL CASH. The assets include inventory at cost of $300,000, Accounts Receivables valued at $1,100,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $1,734,000. The price will be increased or decreased for actual inventory, work in process (WIP) and accounts receivable as of the sale date.

NOTE: All statements, figures, and values are subject to a prospective purchaser?s due diligence.

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