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Name:
#1511 HVAC and Mechanical Contractor
Category:
Service
Region:
Southern Colorado
Industry:
Contractors
Segment:
HVAC and Mechanical
Asking Price:
$995,000  
Down Payment:
$250,000  
Revenue:
$1,987,677  
Adj. Profit:
$92,305  
Adj. Profit Type:
Seller's Discretionary Earnings  

This Southern Colorado company offers the full menu of mechanical contracting services for heating and air conditioning. Its customer mix includes commercial and residential, and through the recession, the company has continued to be profitable. Highlights of the business  include: established customer base, well-trained and experienced staff, and prime real estate for purchase (already built-out for future growth).  This company would make an appealing acquisition to (1) a buyer already in the HVAC industry, (2) a buyer in a related field such as plumbing or electrical contracting, or (3) someone experienced in construction wanting to live in this popular city. Contact Ron Brasch.

  Business Summary 

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.