HVAC & Plumbing in Northern California with 70 Employees
Nearly $13M in sales in 2020!
This HVAC and plumbing company in Northern California has seen year-over-year sales growth since 2017 with nearly $13M in sales in 2020! Serving the Sacramento area since 2003, they complete HVAC (70%) and plumbing services (30%). With an on-site fully automated sheet metal fabrication shop, the company is capable of manufacturing ductwork up to 14 gauge, plumbing and piping, as well as architectural sheet metal and flashings. There are 70 employees on staff, including controllers, foremen, project managers, assistants, and a field/shop work force. The owner has built a solid customer base with a focus on serving schools, government institutions, and commercial office buildings, and many customers have been with this company for over fifteen years. The owner currently focuses on lead generation, some estimations, bonding, and general oversight of the business.
Operations are managed from a large 14,000 square foot location in the Sacramento Valley area. The office has 2,000 square feet of space with a reception area, private offices, and staff spaces. The remaining 12,000 square feet is dedicated to warehouse, storage, and the fabrication shop.
Priced at $6,850,000, there is huge potential for continued growth and success. The industry in Northern California always has room for expansion and the company could take on additional available work in the region. Another area for development could be found in adding a service department and considering the implementation of maintenance and inspection contracts.
- Year Established: 2003
- Location: Sacramento Valley, California
- Service Area: Northern California
- Services: HVAC (70%) and plumbing (30%)
- Clients: Educational institutions, government institutions, commercial office buildings
- Lease: 14,000 sq. ft.: 2,000 sq. ft. office, remaining is warehouse and storage, large roll-up doors
- Reason for Selling: Strategic roll up/ industry consolidation
- Personnel: 70: Controllers, foremen, project managers, assistant, field, and shop workforce
- Seller Training Period: Two years
- Growth Opportunities: Consider maintenance and inspections contracts, expand service area
- Current Owner’s Responsibilities: Oversight, no labor
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$1,830,520||$224,756||$512,536||$824,829||$341,519|
|Meals & Entertainment||$25,270||$27,762||$16,804||$22,649||$12,152|
|Insurance Premiums for Owners: Health, Life, Auto||$24,000||$24,000||$24,000||$24,000||$24,000||$2,000/month|
|Other||$0||$0||$8,553||$0||$0||One time investment expense|
|Seller's Cash Flow = Total Addbacks + Net Income||$1,915,783||$356,187||$621,004||$909,588||$420,874|
|Profit Margin||14.79 %||2.99 %||7.25 %||12.41 %||6.62 %|
- Profit margin: 15%
- Educational institutions
- Government institutions
- Commercial office buildings
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Total Personnel: 70
- Project managers
- Field workforce
- Shop workforce
- Add service department
- Consider maintenance and inspections contracts
- Expand service area
- Take on additional available work
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2020 Cash flow
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Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2020 Cash flow
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Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
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