Premier Bay Area Union Mechanical Contractor
Business Description
STRATEGIC ADD-ON OPPORTUNITY: 56-year Bay Area mechanical contractor positioned for consolidation. Ideal for PE platforms, regional consolidators, or experienced HVAC operators seeking immediate Northern California presence.
IMMEDIATE VALUE ASSETS:
• $3.9M confirmed backlog (5-6 months revenue visibility)
• 87% repeat client rate—healthcare, data centers, tech campuses, commercial RE
• 100% union workforce (avg 15+ yrs tenure) eliminates hiring/training costs
• 30K sq ft fabrication facility on 2 acres with plasma cutter, welding equipment, CAD design
• Licensed in 35+ CA cities (C20/HVAC, C-4/Boilers, C10, C38, C36)
FINANCIALS:
TTM Revenue: $20.9M | FY24: $23.5M
Current TTM EBITDA: $(505K) negative due to owner succession/revenue decline
Normalized EBITDA: $440K-$490K (based on FY21/FY24 stabilized performance)
WHY LOW PROFITABILITY?
Founding owners (age 65+) scaling back business development while preparing retirement. Revenue dropped $28.8M?$20.9M created margin pressure. Returning to 15-17% gross margins (vs FY22 6.8% anomaly).
VALUE CREATION FOR STRATEGIC BUYER:
• Overhead synergies: $300K-$400K (eliminate duplicate accounting, estimating, insurance)
• Purchasing leverage: $150K-$200K (5-10% material cost reduction)
• Pro forma EBITDA: $1.0M-$1.2M achievable 18-24 months (effective multiple 2.0x-2.5x)
IDEAL BUYER: PE-backed MEP platform, regional consolidator, or experienced mechanical contractor with operational turnaround expertise and capital for 6-12 month stabilization.
INCLUDED: Operations, $3.9M backlog, workforce (retention agreements), equipment/inventory ($737K), licenses, vendor relationships. Optional: 30K sq ft facility purchase.
NOT FOR: Passive investors or first-time buyers without mechanical contracting experience.
MARKET: US MEP services $45B?$102B by 2032 (10.7% CAGR). Bay Area data center boom, aging infrastructure driving demand.
IMMEDIATE VALUE ASSETS:
• $3.9M confirmed backlog (5-6 months revenue visibility)
• 87% repeat client rate—healthcare, data centers, tech campuses, commercial RE
• 100% union workforce (avg 15+ yrs tenure) eliminates hiring/training costs
• 30K sq ft fabrication facility on 2 acres with plasma cutter, welding equipment, CAD design
• Licensed in 35+ CA cities (C20/HVAC, C-4/Boilers, C10, C38, C36)
FINANCIALS:
TTM Revenue: $20.9M | FY24: $23.5M
Current TTM EBITDA: $(505K) negative due to owner succession/revenue decline
Normalized EBITDA: $440K-$490K (based on FY21/FY24 stabilized performance)
WHY LOW PROFITABILITY?
Founding owners (age 65+) scaling back business development while preparing retirement. Revenue dropped $28.8M?$20.9M created margin pressure. Returning to 15-17% gross margins (vs FY22 6.8% anomaly).
VALUE CREATION FOR STRATEGIC BUYER:
• Overhead synergies: $300K-$400K (eliminate duplicate accounting, estimating, insurance)
• Purchasing leverage: $150K-$200K (5-10% material cost reduction)
• Pro forma EBITDA: $1.0M-$1.2M achievable 18-24 months (effective multiple 2.0x-2.5x)
IDEAL BUYER: PE-backed MEP platform, regional consolidator, or experienced mechanical contractor with operational turnaround expertise and capital for 6-12 month stabilization.
INCLUDED: Operations, $3.9M backlog, workforce (retention agreements), equipment/inventory ($737K), licenses, vendor relationships. Optional: 30K sq ft facility purchase.
NOT FOR: Passive investors or first-time buyers without mechanical contracting experience.
MARKET: US MEP services $45B?$102B by 2032 (10.7% CAGR). Bay Area data center boom, aging infrastructure driving demand.
About the Business
- Years in Operation
- 58
- Facilities & Assets
- In-House Fabrication Shop: Fully equipped sheet metal fabrication facility with plasma cutter and Pipeworks welder for precision metalwork and pipe welding, enabling quality control and faster project turnaround
CAD Department: Dedicated Computer-Aided Design department supporting design-build, design-assist, and plan-and-spec project execution
Administrative Offices: Two-story office space housing project management, estimating, purchasing, accounting, and executive functions
Materials Storage: Warehouse space with inventory management for sheet metal, - Market Outlook / Competition
- Strong reputation and skilled worked force
- Opportunities for Growth
- The US MEP services market is projected to grow from $45.3B (2024) to $102.3B by 2032, with smart building systems and IoT integration driving significant demand.
Real Estate
- Owned or Leased
- Leased
- Building Sq. Ft.
- 30,000
- Rent
- $4,375.00 per month
About the Sale
- Seller Motivation
- Retirement
- Transition Support
- Seller will provide training at no cost to buyer.
- Financing Options
- Seller financing available for a qualified buyer with good credit and a significant d
Listing Info
- ID
- 2432160
- Listing Views
Listing ID: 2432160 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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