Business Category: Construction Businesses, Miscellaneous Repair Services, Plumbing & HVAC, Service Businesses, and Special Trades
Location: Michigan
City/Region: Tawas City
Listing Price: $350,000
Revenue: $627,508
Cash Flow: $222,184
Established in Eastern Michigan, this HVAC and plumbing Company has been serving its small but loyal Lake Huron community for over four decades. The Company employs three full-time service techs who have the licensure and experience to tackle a variety of tasks, including:
- Plumbing installation and repair (all forms of piping and fixtures)
- Sewer and drain cleaning
- Installation and repair of heating equipment, including sheet metal and ductwork
- Boiler system installation, repair and mandatory CSD-1 reports
- Air conditioning installation and repair
- Backflow preventer installation, repair and mandatory inspection report
The Company has experienced steady organic growth and solid financial performance for many years by consistently delivering quality products and services to customers at a reasonable price.
The owners are looking forward to fully retiring from the business, but are willing to assist with the transition to the new owner.
*Special Note: In a victory for small business buyers, the recent $900BB stimulus bill directs the SBA to waive all guaranty fees and pay up to the first 3 months of new SBA 7(a) loans approved between February 1 and September 30, 2021 (up to $9,000/month). Our advice: Don’t wait. Find a quality business and get moving quickly. Banks will be busy this year and buyers that wait until July/August will likely lose out.
Opportunities For Growth:
(1) Sales and Marketing Efforts – This Company generates virtually all of its sales from past clients and word-of-mouth business. The Company does not have a web presence, a dedicated salesperson, and only invests minimally in any marketing (yellow pages and truck signage.) Despite this, the Company has consistently operated profitably and experienced steady growth.
(2) Additional Staff – The Company is unable to accept all the calls it receives requesting service. A new owner with relevant skills or a strategy for hiring/training new technicians could quickly grow the business.
Investment Highlights:
(1) Low Risk/High Cash Flow Business – For many years, this Company has provided its owners with an optimal balance of risk and reward (cash flow). Spending on heating and plumbing is usually not discretionary and tends to be largely independent of the economic conditions of the local and national economy.
(2) Distinct from the Competition – The Company sets itself apart from the competition in a number of ways:
-Quality products, including Trane furnaces, Kohler plumbing products, Gould pump systems, Honeywell, Weil McLain boilers, etc.
-Reputation for quality 24/7 service, with 3 highly qualified service technicians with an average tenure of 18 years
-A well-stocked warehouse to reduce wait time for repairs
Real Estate Value: $50,000
Real Estate Available: For Sale
Reason For Sale: Retirement
Number of Employees: 4