Air Conditioning Services And Sales – Great Contracts In Place – Newcastle, Nsw

Business ID: XB165339

Under Management with very impressive annual profits

Established over 20 years, this predominantly service-based business has long-term service contracts in place with Government, Education, Commercial and Industrial Clients. The business has a very experienced, long-term staff and has been run by the GM, who manages the sales, service and administration aspects of the business, with the owner maintaining expense and financial control of the operation.

Operating from excellent premises owned by the vendor, the sale is quite unique in that there is no requirement for the buyer to either purchase or lease (some or all) of the premises. The vendor is happy for the buyer of the business to relocate to new premises if that is their preference.

- 3-year average revenue $4.2M

- 80% of revenue from technical services

- 60% of service revenue is under contract

- Very strong income to owner

- 7 qualified full-time technical staff

- 2 Apprentices

- 1 full-time installer (sub-contract)

- 3 Administration, Service Management and Accounts staff

- 1 Sales (GM)

- Secure 700sqm premises with room for expansion

- New 15Kw solar system with battery fitted to premises

- Security cameras and alarm fitted

- Excellent fleet of company-owned vehicles

Terms of settlement: The vendor is looking for full payment at settlement and has priced the business extremely fairly, bearing in mind the profit it achieves and that a number of the contracts are long-term and with Government and Education clientele.

This is a business that has an enviable reputation within the region it operates in. It is very particular about the customers it works with, and as a result, has average debtor days well below 30 days and has few (if any) bad debts. Residential customers all pay a deposit, with full payment due on or before installation.

With many customers under contract, a good proportion of revenues is already secured, and one major contract has only just begun, and as such, the accounts do not yet reflect a full year’s revenue from this client.

This is an absolutely rock-solid opportunity for many types of buyers, including competitors, service-focused businesses or individuals looking for either an opportunity that is run under management or one that they can work in (full or part-time) and stamp their own mark on.

Asking Price: $2,240,000 plus SAV (typically $100,000)

Property Code: 4695