Mechanical Insulation Contractor For Sale

Business description

This well established and successful energy conservation business specializes in the insulation and jacketing of mechanical systems. It provides material and installation services for the full range of thermal, condensation control, protective jacketing, and personnel protection insulation applications. The company has extensive experience working in the industrial and commercial markets. It generally functions as a subcontractor to mechanical contractors. The company’s impeccable reputation for quality workmanship enables it to receive contracts even when they do not submit the lowest price. This is an exceptional opportunity for a corporate or individual acquirer who wants to own a company dedicated to saving energy.

Property information

Real Estate:

Real Property Included

Premises details:

The real estate includes three buildings consisting of a 3,000 square foot office and warehouse, a 1,140 square foot warehouse with loft, and a two story 5,680 square foot warehouse on one acre of land. The real estate is available for lease or purchase. It's value is allocated at $275,000 of the $775,000 total purchase price.

Business Operation

Expansion potential:

As energy costs continue to rise, conservation becomes more important to building owners and most manufacturing processes. The need for the company’s services has never been greater especially in New England where there are older manufacturing facilities. Significant additional revenue could be generated by pushing for more work in neighboring states and taking advantage of the company’s favorable wage advantage.

Competition / Market:

Because of the need for energy savings and conservation in manufacturing processes, the company’s potential customer base is huge. There are over 27,000 manufacturers in New England, and over 18,000 in the company’s primary market area. Many of these manufacturing facilities can benefit economically from proper thermal insulation of their processing and heating systems, condensation or acoustical control.

Reasons for selling:

The seller is retiring after more than 30 successful years in business.

Employees:

19 Full-Time

Years established:

1977

Other information

Support & training:

Owner will provide transition train for a new owner.

Financing available:

Seller/Bank financing on business $300,000; Anticipated Bank on R.E. $200,000. Total Down Payment $275,000; Inventory Purchase $50,000 Working Capital Needed $200,000

Furniture / Fixtures value:

$250,000 (included in the asking price)

Inventory / Stock value:

$50,000