Passive HVAC Company in Sunny Hawaii
Enjoy an excellent reputation and at least 3 months off each year!
This established HVAC company located on Maui is known as the #1 refrigeration and air-conditioning company because of their excellent customer service and prompt quality repairs. Established in 1997, they have an excellent team of 16 employees, including trusted technicians, office staff, and installation managers. They split their time between service and installation, with 75% repeat clients on the service end and 50% repeat clients for installation. All of this work equates to an average monthly revenue of $400,000. Due to the excellent reputation and efficient team, the owner of this successful HVAC company enjoys 3-4 months out of state each year!
The owner has built a solid customer base and provides services to commercial clients like condos, shopping malls, retail stores some of which have relationships with this company spanning 20+ years. Operations are managed from a large 6,000 square feet location in the Kahului area. The office has 2,000 square feet of space and the remaining 4,000 square feet is dedicated to their warehouse and sheet metal shop. The owner currently focuses on general financial and business oversight as well as the bidding process.
Priced at $2,650,000, there is tremendous growth potential for a new owner. The company does no marketing; the only advertising they do is from their website and ads on their trucks. Over the years, all of their business has come from word of mouth due to the excellent service they provide. Implementing a marketing strategy would certainly boost sales. A 12.5% down payment of $331,250 returns $419,504 in the first year after debt payments – a 127% return on investment!
Year Established: 1997
Location: Maui, Hawaii
Service Area: Entire Maui Island
Services: Commercial Refrigeration Repair & Installation, AC Repair & Installation, Maintenance (90% Commercial)
Service Breakdown: 50% Service, 50% Installation
Clients: Commercial (Condos, shopping centers, restaurants, office buildings), Residential – premium private homes
Lease: $6,800/month; 6000 square feet (Offices, warehouse, sheet metal shop)
Reason for Selling: Retirement
Personnel: 16; 1 owner, 2 managers, 10 technicians, 2 assistants, warehouse employee
Seller Training Period: 1 year
Current Owners’ Responsibilities: Financial oversight, general management - has trained personnel who can manage the business in his absence, as he spends 3-4 months out of state each year
This company has 16 employees including the owner.
- Founder / CEO (1)
- Service Manager (1)
- Installation Manager (1)
- Office Manager (1)
- Service Technicians (5)
- Installation Technicians (5)
- Assistants (2)
- Sheet Metal Expert (1)
- Lead Technician (1)
- List Price: $2,800,000
- Gross Sales:
- 2021: $4,889,803
- 2020: $3,677,379
- 2019: $3,818,256
- Cash Flow:
- 2021: $770,737
- 2020: $555,068
- 2019: $746,050
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$560,664||$355,437||$293,663||$668,315||$538,167|
|Compensation to Owner||$124,999||$136,189||$134,769||$134,638||$123,914|
|11% Tax on total W2 Salaries||$13,750||$14,981||$14,825||$14,810||$13,631|
|Meals & Entertainment||$2,172||$1,203||$1,035||$998||$620|
|One Time Cost||$0||$0||$210,000||$-210,000||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$770,737||$555,068||$746,050||$704,615||$716,562|
|Profit Margin||15.76 %||15.09 %||19.54 %||16.38 %||18.18 %|
- 2018 was an anomaly – they got big deposits at the end of the year and the jobs didn’t get done till 2019.
- Sales are down ~$150K in 2020 due to Covid. Some of their service jobs were stopped due to closures of restaurants, retail stores, shopping malls and other commercial clients that they work with
- 2021 pipeline is greater than $2M and business is already up by 25%.
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.
2019+2021 Average Cash Flow
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Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2019+2021 Average 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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Omaha, NE 68114
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