Heating & Air: cash flows over $100,000!

TYPE OF BUSINESS:  This company  sells, installs and services heating and air conditioning units, gas piping, humidifiers, heat recovery ventilators, ventilation, compressed air, exhaust systems etc. They are a certified Rheem dealer however, they sell and service all brands. The majority of their work is residential, existing homes.  They have some commercial service accounts.  Its current owner established the company 26 years ago.  The bulk of their work is in the metro area. This is a non-union shop.  The owner works the business full time and is responsible for selling/quoting, scheduling, and ordering parts.  The owner carries all necessary licenses that are required to do business in the twin cities metro area including Minneapolis and St. Paul.  This company is located in a northwest suburb of Minneapolis.  The company has a good standing reputation

EMPLOYEES: Husband and wife team. Husband handles all services and wife is the office manager. He works about 50 hours per week and she is about 25 hours per week. They have enough business to support  an additional installer.

FACILITY:  The company is operated from their home. Hours of business is 7:00 a.m. – 5:00 pm Mon-Fri.

GROSS SALES/CASH FLOW:  Gross sales for 2019 were $467,351; 2018 were $414,068; Cash flow to an owner operator in 2019 was approx. $101,600, 2018 was approx. 108,700.

ASKING PRICE:  The asking price is $299,500 which includes equipment, vehicle, and trailer valued at about $44,000.

REASON FOR SALE:  The owner wants to retire from this business.

ADDITIONAL COMMENTS: The owner is “comfortable” and is very selective on the work they accept.  The new owner should consider hiring a sales-person and an additional installer.

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