Business Description

Unique opportunity to acquire a fast growing HVAC, plumbing, and electrical services company, typically functioning as a specialty MEP (Mechanical, Electrical, and Plumbing) contractor in Texas. 26.4% profit margin in 2023. $21.6M in revenue in 2023, with 20% CAGR from 2020. Company founder and CEO, leads the family-owned business with his family holding 100% ownership. There is an option to purchase the real estate along with the company. 

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Key Metrics

$29.6M TTM July ’24 Revenue

$6.4M TTM July ’24 ADJ. EBITDA 

$21.6M 2023 Revenue | 20% CAGR 2020 – 2023

$5.7M 2023 EBITDA | 60% CAGR 2020 – 2023

Background

The company excels in Mechanical, Electrical and Plumbing (MEP) contracting work with extensive experience in commercial and residential projects, new builds, renovations, and diverse construction projects. Projects range from municipal (public schools), industrial/commercial (office buildings, warehouses), retail (auto dealerships, healthcare, grocery stores), and residential (multi-family projects).

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Key business details

• Substantial revenue growth: The company has achieved a 20% CAGR since 2020, with 45% YoY growth 
• Industry leading margins and cash flow: With 34% gross margins and 25% Adj. EBITDA margins (60% CAGR from 2020) and $6M Adj. EBITDA in 2023, the company ranks among the top performers in the industry. 
• Balanced Revenue Mix: The company currently generates approximately 56% of revenue from HVAC services, 26% of revenue from plumbing services, and 18% of revenue from electrical services.
• Tier 1 Market Dominance: The company holds a leading market position, with established infrastructure, in an attractive market in Central Texas, ensuring strategic advantages and a strong customer base
• Strong backlog and pipeline: With $42M of contracted work currently in the backlog, the company has a steady stream of projected income.
• Recurring business through strong partnerships: The company has established strong, long-term partnerships with general contractors, who have awarded the company most of its projects. 

Growth opportunities

• Expand electrical division: The electrical division currently specializes in smaller residential and commercial projects. Strategic investment in additional resources would enable the division to pursue and secure larger municipal contracts.
• Broaden HVAC and Plumbing Project Sectors: By capitalizing on strong market demand within the commercial and residential sectors, the company can unlock new revenue streams for its HVAC and Plumbing divisions.

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