40 year old HVAC and Electric Company in Middlesex County, MA


Asking Price: $5,999,999

Annual Figures: 2024

Gross Sales: $5,900,000

Net Profit: $1,200,000

Expenses: 2024
COGS: $1,514,968
Salaries & Wages: $2,105,360

Highlights:
- HVAC & Electrical Contractor.
- Located in Middlesex County, MA
- Company started over 40 years ago
- 30 employees - All W-2's, doesn't use many subs
- Owner is there 5 days a week but the business can run by itself
- Breakdown of employees available upon request
- Not a lot of employee turnover. There is a key man in the business.
- 90% residential 10% commercial
- Roughly 500K in assets coming with the business
- 3 licenses with the business
- Service area: Middlesex and Hillsborough county
- Breakdown of revenue available upon request
- Jobs come from Google, different platforms, and a lot of word of mouth because of how long the company has been around
- Not many new construction jobs
- Backlog normally about a month out to make sure they can service the clients properly
- No customer concentration
- Leases office space
- Seller note could be available based on the rest of the offer
- Fully approved with SBA. Pre-Approval is available
- 60-90 transition then can be available on a consultant basis
- Reason for selling: Owner had a plan to sell at some point and he feels this is the right time


From Tax Return
2024- Gross: $5,884,017

Addbacks:
Compensation of officers: $246,200 (owner 1 - $214,113, owner 2 - $180,700) = $394,813 total
Interest: $160,242
Depreciation: $127,111
Business coach & training: $33,748
Equipment (personal): $9,149
Customer appreciation: $10,615
Retirement Simple IRA (owner): $6,947
Retirement Simple IRA (owner): $5,507
Sponsorships: $6,568
Travel: $9,853
Owner vehicle (personal): $7,827
Owner vehicle (personal): $13,662
Amortization: $84,374
Ordinary business income: $301,560

$1,171,976 adjusted net = 20% net profit margins



From Tax Return
2023 - Gross: $6,446,078

Addbacks:
Compensation of officers: $272,256 (owner 1 - $157,654, owner 2 - $240,999) = $398,653 Total
Interest: $165,114
Depreciation: $172,922
Business coach & training: $33,339
Retirement Simple IRA (owner): $6,014
Retirement Simple IRA (owner): $4,994
Amortization: $84,374
Travel: $8,971
Ordinary business income: $416,830

$1,291,211 adjusted net = 20% net profit margins



From Tax Return
2022 - Gross: $3,042,508

Addbacks:
Compensation of officers: $147,000 (owner 1 - $163,887, owner 2 - $36,030) = $199,917 total
Interest: $107,152
Depreciation: $110,961
Retirement Simple IRA (owner): $5,833
Retirement Simple IRA (owner): $2,082
Amortization: $84,374
Ordinary business income: $70,175

$580,494 adjusted net = 19% net profit margins