Union Mechanical Contractor For Sale

Business description

The March Group currently represents a successful and well-established full spectrum HVAC contractor that offers a wide range of mechanical contracting needs for a major Midwestern market. Offers full scope design/build, modification and pipefitting services, from draft and layout to full field installation for commercial and industrial HVAC, ventilation, and process piping. Undertakes a healthy diversity of projects, including jobs for new construction (40 percent of 2008 revenue), renovation (30 percent), service/maintenance (20 percent), and tenant finish (10 percent) markets. A growing service portfolio includes 30 to 40 recurring revenue-producing service contracts, and the market exists for a more prominent service division to capitalize on even greater growth opportunities. Benefits from a highly skilled union labor force with minimal turnover. One of only a handful of LEED (Leadership in Energy and Environmental Design) Green Building approved contractors in the local market. Despite the down economy, 2008 performance was very strong, with revenue surpassing $2.0 million and EBITDA plus owners’ compensation of $299,031. Revenue is forecast to be flat at $2.0 million in 2009, then increasing at a 10% CAGR. Duct work is currently outsourced to local sheet metal shops; an investor willing to bring manufacturing in house could substantially widen profit margins.

Property information

Real Estate:

Lease

Premises details:

Lease a 6,000 sq. ft. facility (2,000 sq. ft. of office and 4,000 sq. ft. of warehouse space).

Size in square feet:

6,000

Other information

Competition / Market:

Management believes that, given the appropriate resources, the Company could easily leverage its existing relationships and expertise to increase its commercial/industrial business and continue to expand the service division. Additionally, new owners willing to accept greater risk and take on larger projects or invest in an in-house sheet metal shop could substantially increase revenue.

Support & training:

The founding President, who holds deep connections in the local market, would be interested in retaining a management position.