Established HVAC Contracting Company

New Orleans, LA
Orleans Parish

Metro Area

Asking Price: Annual Revenue:
$325,000 $359,665

Services: Construction, Contractors

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RE: Established HVAC Contracting Company Broker: Michelle Seiler Tucker

Quick Facts

Asking Price: $325,000
Annual Revenue: $359,665
Net Profit: $93,447
Cash Flow: Not Disclosed
Total Debt: Not Disclosed
FF&E: $44,000
Real Estate: Not Disclosed
Year Established: 1984
Employees: Not Disclosed
BBN Listing #: 365953282
Broker Reference #: 3394

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Business Overview:

It’s hot, hot, hot outside, and so is this deal!

Cool down with this A/C, Heating, and Refrigeration Service company established 1984.

Looking for something recession-proof? Easy to learn? With $360,000 in sales and a customer base that has stuck around for more than 30 years, there’s no need to look any further to step into the business of your dreams!

This award-winning emergency service company renovates, repairs, and maintains any breakdowns of essential home services, specializing in air-conditioning-heat, and refrigeration, as well as provides same-day services in gas, electric, plumbing, painting, sheetrock, roofing, patios, decks and awnings for both commercial and residential properties. This company has more than three decades of experience serving customers in Louisiana, and is on track for three more good decades in this recession-proof and highly regarded and essential business that stands out among the rest.

So what are you waiting for? Inquire today!!

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Market Competition and Expansion:

The trend for the HVAC—Heating, Ventilating, and Air Conditioning—industry suggests that consumers strongly demand high quality service as households want to ensure the comfortability of their homes. Industry trend also indicates that there is increased consolidation within the HVAC industry. This consolidation trend is expected to continue for the next 10 years since this line of business demands high technical workers, and the supply of workers with expertise is scarce. The shortage of workers is expected to increase, because of the overall push for college education among high school graduates. There are not enough young people joining the trades industries, so pricing is increasing, as manpower becomes less and less available. Managers must also have technical skills or have enough resources to pay for experts. Ideal workers are not only expected to possess technical skills, but also are expected to possess interpersonal skills as they regularly interact with homeowners. Consolidation is more cost effective rather than training new, inexperienced employees, so stronger businesses are acquiring smaller, weaker competitors. Moreover, residential service and replacement businesses such as HVAC are relatively recession proof. This is attributable to the fact that most homes in the United States have heating and/or cooling in their homes. However, HVAC businesses that are more commercial-oriented may not be as recession proof as residential-oriented businesses. Although the HVAC may be recession-proof, consolidation can further increase if the economy slows again. Although larger businesses are acquiring mid-size and smaller businesses, the barriers to entry are high for home energy services, due to high certification and equipment costs. The industry offers significant margins, and competitive advantages can be obtained through certain controls and differentiation. Fortunately for this Company, it is well established and has been serving the Greater New Orleans area for over three decades. The historical financial data does not accurately depict the Company’s true potential as the team is rather small, and the manager has not been able to put in as much time and effort due to health complications over the past few years. Furthermore, the projected financial data is calculated using a conservative approach. The new owner would immediately retain tangible value and intangible value such as equipment, established customer base, and less competition in a market with high barriers to entry. Synergy would be created if the new owner already has an existing HVAC business in the Greater New Orleans. Nonetheless, the new owner should see immediate improvements on the top (revenue) and bottom (net income) lines of the business with the right amount of time and focus.

Reason for Selling:

Health Issues.

Additional Details:

  • The property is owned.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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