Commercial Air Conditioning Opportunity – For Sale by Expressions of Interest

Commercial Air Conditioning Business - Sydney

POA

Overview

This business is a well-established commercial air conditioning and refrigeration installation, maintenance and repairs service provider based in Sydney.

The business has a strong reputation developed from a focus on effective project delivery, quality, reliability and strong industry relationships which has resulted in a loyal and repetitive customer base, a solid baseload of work and stable financial results.

Investors have the opportunity to operate this business which has grown revenues and earnings over FY2016-FY2018, delivers excess owner returns and has significant growth prospects within its market.

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Quick Facts

  • Well-established air conditioning and refrigeration installation, maintenance and repairs business.
  • Primarily services clients within commercial property management markets as well as commercial and industrial construction markets.
  • Business generated revenues in excess ~ $1,500,000 and earnings of ~$300,000 for FY2018. 
  • Significant business development opportunities demonstrate a strong capability for further growth potential. 
  • Annual revenue and earnings growth of 6.4% and 13.2% respectively YoY FY2016 – FY2018 (average compounded rate) 
  • Expenses declining by approximately 3.6% YoY FY2016 – FY2018 (average compounded rate)
  • Established a solid reputation and concrete relationships with large commercial clients.

Business Opportunity

This business presents a unique investment opportunity for investors with an interest in the air conditioning and refrigeration services market. Operational for over 20 years, the business has an established presence throughout Sydney and has experienced strong financial performance and stable growth within its market.

JPAbusiness has been engaged by the Vendor to identify interested parties with an appetite for investments offering superior returns including:

  • Existing market players (in Sydney or out of state, either in commercial/industrial, residential or both) operating within air conditioning and refrigeration with an appetite for expansion.
  • Facilities management businesses looking to increase service offering to complement existing product lines with a solid bolt-on business.
  • Individuals or investors searching for an established business opportunity that provides stable and solid investment returns with strong prospects of future growth.

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Financial Performance

  • Revenues in FY2018 were $1.5m which have grown an average of 6.4% YoY since FY2016.
  • The business increased overall operating efficiency with expenses declining at a compound annual rate of 3.5% over FY2016-FY2018.
  • Earnings before interest taxes was approximately $275,000 in FY2018 which grew at a compound annual rate of 13.2% over FY2016 – FY2018. 

Customers & Markets

The business services the commercial and industrial markets and has a network of clients and customers in commercial offices, disability and aged care facilities and retail premises throughout Sydney.

The business has established a strong reputation amongst its customer base which have generated multiple business relationships and created a solid base load of recurring maintenance and repairs work. This has provided a valuable recurring revenue stream and earnings stability for the business.

There is strong opportunity for existing players or other facilities management and property services investors to expand through leveraging existing relationships with its property management clients by offering complimentary facilities management services or expanding throughout Sydney with increased business development.

Business Location

The business is located in Sydney in a light industry/commercial setting with easy access to main roads and highways and operates out of a leased commercial unit estate. The current lease is set to expire in June 2021.

The premises contains functional office space and adequate storage areas for which to house materials for scheduled and upcoming jobs.

Rent paid is currently $3,000 per month including GST and outgoings which is in line with market rates for the area. The landlords have indicated a willingness to negotiate commercial terms with the new owners.

Point of Difference

This business is well positioned in its market. Key competitive advantages include:

  • Unique business positioning to work closely with large property management clientele to deliver value and meet the service demands of tenants and landlords. 
  • Extremely effective at providing solutions and fixing key issues of larger clients which have allowed it to benefit from enhanced margins relative to competitors.
  • Reputation with commercial clients and property managers has resulted in a loyal customer base, locked in business relationships and a solid base load of recurring work.
  • Effective operating procedures and internal systems make this an efficient business with high quality project delivery. In addition, the breadth of staff understanding of the business and operational management have also reduced significant reliance on senior management which will assist in a smooth business transfer.

People

In addition to the owners who manage the operations and administrative functions, the business employs four technical employees who add over 30+ years of industry experience to the business.

Staff are highly skilled and have an in-depth understanding of core business operations, systems and processes, and are focused project delivery and providing effective and meaningful solutions to all clients.

With an effective and dedicated team in place, investors can be assured the business will continue to deliver high quality results following the transition of business operations. 

The owners also are prepared to provide sufficient support to ensure operations, systems, processes and relationships and are adequately transitioned to new ownership. 

AirConditioningWorker

Expressions of Interest

We are seeking Expressions of Interest for the business as a going concern, including goodwill, related assets and operational plant and equipment, by 30 September 2018. Interested parties should contact JPAbusiness for more information, including a detailed Information Memorandum relating to the business.

The asking price for the going concern business and operational plant and equipment will be provided on application.

 

Enquire About this Business Now

Quick Facts

Print Brochure
  • Well-established air conditioning and refrigeration installation, maintenance and repairs business.
  • Primarily services clients within commercial property management markets as well as commercial and industrial construction markets.
  • Business generated revenues in excess ~ $1,500,000 and earnings of ~$300,000 for FY2018.
  • Significant business development opportunities demonstrate a strong capability for further growth potential.
  • Annual revenue and earnings growth of 6.4% and 13.2% respectively YoY FY2016 – FY2018 (average compounded rate)
  • Expenses declining by approximately 3.6% YoY FY2016 – FY2018 (average compounded rate)
  • Established a solid reputation and concrete relationships with large commercial clients.

Important Information for Prospective Purchasers:

All information in this document is of a general nature only and not exhaustive. Interested parties should conduct their own due diligence and feasibility assessments. The Vendor of Commercial Air Conditioning Business, and advisers, JPAbusiness, are not liable for any loss or damages associated with reliance on this information or the Expressions of Interest process.

JPAbusiness Pty Ltd operating under Principal Business Agents License No. 1710192

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