BUSINESS SUMMARY
Amazing turnkey HVAC opportunity based in DFW, Texas. The business has been pre-approved for SBA financing for full asking price. $420K SDE in 2023, with 20%+ SDE margin in each of the past 2 years. $1.6M in revenue in 2023, with 4x increase in revenue from 2021. The company has an operations manager in place to help manage business day-to-day and ensure smooth transition post-acquisition.
KEY METRICS
$1.6M 2023 revenue | 98% CAGR from 2021 to 2023
$420K 2023 SDE | Consistent 20% profit margins from 2022 to 2024
BACKGROUND
This Commercial HVAC business was founded in 2020 by an industry veteran with over 50 years of experience. The business was created with scalability and efficiency in mind, operating on a subcontractor-focused model that allows outsourcing of all operations. There is no real estate necessary to run the business, and all office tasks are performed from home. Job supervision occurs on site, and is currently performed by the owner and the operations manager. The owner is preparing for retirement, and as a result, brought on a veteran operations manager in early 2024 to help support ongoing operations and help manage any transitions post-acquisition. This experienced operations manager is also expected to contribute to sales growth in the full year of 2024. The company focuses on a wide range of commercial clients covering retail, office space, multifamily, and hospitality.
KEY HIGHLIGHTS
- Home-based and low-overhead: Business was built on a remote-first model, allowing all administrative tasks to be handled from home and eliminating any expensive office costs.
- Scalable subcontractor model: Independent contractors are used on a per-project basis, reducing fixed labor costs, allowing for job specialization, and making it easier to scale up the business with increased demand. These subs have been with the company for the last 4 years and are trusted partners.
- High customer-repeat rate: Almost all business comes from repeat customers, showing the high quality of work, customer satisfaction, and revenue stability.
- Consistent revenue growth and profit margins: Over the past few years, this business has shown 98% CAGR in revenue and consistent 20% SDE margins.
- Licensing and certifications in place: The business has relevant licenses to operate an HVAC business in TX and boasts over a dozen advanced HVAC systems certifications that provide a competitive advantage
GROWTH OPPORTUNITIES
- Hiring an Additional Estimator/ Project Manager: By adding an additional PM, the company could take advantage of excess demand they currently turn away.
- Expand geographies and customer base: Business is very focused on Dallas-Fort Worth area but could grow into neighboring regions or other cities within Texas
- Addition of new service lines: With core operating structure in place, the business could support new HVAC solutions, more verticals, or similar services like maintenance contracts and energy efficiency consulting.
- Vertical integration: Acquiring or partnering with companies in related services sectors, such as plumbing or electrical services, could help organically grow the customer base.
