Highly Profitable HVAC and Plumbing Contractor Company for Sale

January 25th, 2012

Ian Joseph

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This Company for sale is a well-regarded, design-build HVAC and plumbing contractor, serving the large-project, multi-family residential, hospitality, and commercial construction markets in Canada and the United States. The Company is strongly positioned as a regional contractor; projects are concentrated in metropolitan markets on both sides of the U.S. – Canadian border. Projects include many large, high-rise residential developments, as well as major commercial and office complexes.

The Company has been able to effectively differentiate itself on a number of fronts, including its long-standing reputation for quality, comprehensive services, strong design-build capabilities and unrelenting focus on customer service. As a design-build contractor, the Company’s core competencies are complemented by in-house engineering and controls capabilities.

An experienced group of division, project, engineering and controls managers represent a core management team which will remain with the business under new ownership. The active owners are available to remain with the business over a multi-year transition period.

Fiscal 2012 sales are forecast to approximate US$12 million and CAN$28 million for the U.S. and Canadian divisions, respectively, with corresponding EBITDA of US$1.7 million (14 percent margin) and CAN$5.0 million (18 percent margin). A backlog of approximately US$25.8 million for the U.S. operation and CAN$44.5 million for the Canadian operation supports current and future year projections.

U.S. Operation

	Actual			Projected
FYE December 31	2008	2009	2010	2011	2012	2013
Sales (In US $000s)	27,014	16,669	9,464	4,800	12,000	14,000
% Growth	–	-38.3%	-43.2%	-49.3%	150.0%	16.7%
Cost of Sales	22,695	9,905	5,201	3,624	9,120	10,360
Operating Expenses	2,768	2,265	1,384	576	1,200	1,400
Depreciation	–	–	49	30	40	50
EBITDA	1,551	4,499	2,878	600	1,680	2,240

Canadian Operation

	Actual			Projected
FYE July 31	2009	2010	2011	2012	2013	2014
Sales (In CAN $000s)	26,811	8,144	14,052	28,000	33,000	35,000
% Growth	–	-69.6%	72.5%	99.3%	17.9%	6.1%
Cost of Sales	21,999	3,380	10,052	20,160	23,760	25,200
Operating Expenses	2,194	2,098	2,198	2,800	3,300	3,500
Depreciation	–	–	–	5	15	25
EBITDA	2,618	2,666	1,803	5,040	5,940	6,300