Property Id : 20020
Price: $ 1,500,000
Gross Revenue $: 1,070,000
Cash Flow $: 490,000
FF&E $: 300,000
Inventory: Included in asking price
Year Established: 1985
Employees: 10 FT/2PT
Real Estate: Owned
Reason for Selling: Owner retiring and moving.
Support & Training: 90 day transition, longer if needed.
Growth / Potential: The duct cleaning industry is in its infancy and people are becoming aware of the health hazards associated with the air we breathe and the dangers of mold. Building engineers are insisting that air ducts be cleaned in new construction. The largest builder in the area has contracted with the company to clean their brand new houses. Home buyers are requiring sellers to have ducts cleaned as a contingency of the sale. The company works with many remodeling firms and retirement communities and apartment managers are requiring air duct cleaning when a unit becomes vacant. HVAC systems manufacturers often require that the air ducts be cleaned or the warranty could be voided. Commercial buildings owners continue to see value in the the service provided.
The hard work is done. The equipment is in place. The staff is trained and excited about coming to work every day. Key client relationships are established and the company has had an average 20%, year over year, sales growth. Continued growth is expected and key investments in equipment are in place in preparation. None of the equipment is leased and all equipment is up-to-date and in excellent working order. The company is debt-free and profitable.
This is an established cash based business with short cash flow cycle and is viewed as the industry leader in the Kansas City metro area. The company is ready for the next level---$2 million in annual sales.
Market & Competition: Marketing is simple with a website and phones that are answered promptly and pleasantly. As most people use Google to look for local businesses, one look at the 70, 5 star reviews (from legitimate clients in the KC area) and this company gets the calls. Competition is minimal. and the company's patented proprietary truck system is paired with certified technicians that make it the industry leader. The results are unattainable by any of their competitors. The company is #1 in Google reviews not only in the area, but also in the entire franchise network. Though the company’s price is not lowest, clients do not want the cheapest; they want the best results. They stay booked 2 weeks or more, out. The company also has a small presence on Angie's List and Home Advisors.
Financing Notes: $210,000 @7%, 48 mo. with 12 mo. standby
Willing to co-broker?: -
Principals only?: -