Issue link: http://deals.uberflip.com/i/1538920
Residential and Commercial HVAC Service, Repair, Maintenance Located in South Central US #68887 Sign NDA ► DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Jacob Mangalath Vice President - M&A Email: JMangalath@generational.com Mobile: 469-828-2791 Generational Equity 3400 N. Central Expressway, Suite 100, Richardson, TX Fax: 972-392-1124 BUSINESS HIGHLIGHTS The Company is a top-tier HVAC contractor, specializing in retrofitting and servicing while excelling in installing, replacing, and maintaining HVAC equipment up to 25 tons. The Company is an Trane Comfort Specialist, offering competitive pricing and access to dealer programs for rebates. The Company is also an authorized Rheem dealer servicing a controlled territory. Approximately 33% of revenue is derived from contract maintenance agreements. The owner is willing to stay on during the transition period and continue as a consultant afterward. Additionally, all key employees will be available to stay with the new ownership beyond the sale of the Company. The Company operates from a home office and 500 sq. ft. of storage space, strategically located to ensure efficient travel times for the region it services. INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 - 2022 - 2024 COMPANY STATS > In Operation 7+ Years > 75%+ Repeat Business > 1,600+ Active Accounts > 400+ Service Agreements > Diversified Market Base > 3 Full-Time Employees > Authorized TRANE Dealer > 50+ Installations in 2024 INVESTMENT APPEAL • Diversified Customer Base: The Company has developed an excellent reputation within the local area for supplying high quality and high value HVAC contracting services. Over the historical period, the Company experienced no significant customer concentration. • Scalable Operating Expenses: The Company has built an effective organization capable of sustaining projected growth. The Company maintains fixed operating expenditures, and future revenue growth will greatly improve profitability. Any increase in revenue will not result in meaningful changes to projected operating expenses. Operating expenses have been trending lower, decreasing as a percent of sales from 24.4% in 2022 to 20.1% in 2024. • Exceptional Profitability and Strong Financial Performance: The business boasts an exceptional gross profit of $514,000 in 2024 represents a ratio of 41.2%. The Company's ratio is higher than the plumbing and HVAC industry average for companies of its size at 34.9% . The Company has experienced strong growth in EBIT, from $158,000 in 2022 to $262,000 in 2024, representing a compound annual growth rate of 29.0%. • Strong Net Working Capital: In 2024, the Company's Net Working Capital (NWC) was $141,000. A strong NWC provides a pool of resources from which the Company can draw for continued growth and a strong buffer to maintain operations in the event of various systematic and unsystematic risks. GROWTH OPPORTUNITY > Expand Maintenance Program > Expand Geographically to Broaden Client Network > Increased Marketing Efforts Revenue Mix 2025 Revenue Est. $1,400,000 2025 SDE $475,000 (33.9% of revenue) Customer Mix