Commercial and Industrial Mechanical Contractor – West Michigan

This dynamic opportunity presents itself as a vibrant commercial and industrial mechanical contractor, offering complete plumbing, heating, and cooling services. The Company, which specializes in catering to commercial and industrial customers throughout Western and Central Michigan, seamlessly guides clients from the initial design consultation through the construction phase, leveraging long-standing relationships and recurring revenue-based maintenance and service agreements to drive business.

With a rich history dating back over 65 years, the Company was transitioned to its current owners approximately 25 years ago. One Owner is committed to the day-to-day operations of the Business, serving as the Company’s President and dedicating roughly 50 hours per week to fulfilling Business-related duties. The owner’s most important responsibilities include general strategy formation, labor scheduling, and materials procurement.

Full-Service Commercial and Industrial Mechanical Contractor

Current ownership desires to sell the Business to begin transitioning into retirement; however, the active owner is willing to remain employed by the Company for an extended period of time post-sale (up to 5 years).

The Company boasts a seasoned leadership team with a wealth of experience, adeptly handling many operational functions, from nurturing customer relations to expertly managing finance and accounting. The recently appointed salesperson, who specializes in building and maintaining the Company’s long-standing customer relationships, has been instrumental in the Company’s success as they routinely perform repeat work for customers as technology continues to evolve. The Company also has several highly skilled project managers who meticulously coordinate resources and field personnel based on current projects and work alongside crews in the field.

The Company currently operates out of a facility owned through a related real estate holding entity. The facility was built in 1999 and later expanded in 2018; the Company moved into the facility in 2016.  The facility is divided between office and shop space and has been renovated on an ongoing basis to ensure that the facility remains in good condition. The facility has an estimated market value of $550,000. Ownership is flexible regarding the sale or lease of the real estate.

Financial Information

2022 Revenue: $11,830,755

2022 Cash Flow: $2,204,718 (Adj. EBITDA)

December 31, 2022 Inventory: $151,641

Estimated Real Estate Value: $550,000

Additional Information

Number of Employees: 32 (including one owner)

Facilities: The Company operates out of a facility totaling 8,000 square feet. The facility is owned by a related real estate holding entity. The Company’s facility includes office space and shop space with two overhead doors. The office was built in 1999, and the shop space was added in 2018. The facility was purchased by the owner in 2016, and the owner prioritized routine maintenance of the building to ensure it remains in good condition.

Support/Training: Ownership is willing to provide reasonable and customary assistance during the transition period. The active owner is open to remaining employed by the Company for an extended period of time, up to five years, under the correct compensation and conditions.

Reasons for Selling: Ownership wishes to begin transitioning into retirement.

Investment Highlights

(1) Strong Base of Recurring Revenue: The Company handles all project stages, from initial design to ongoing maintenance. The Business maintains long-standing customer relationships that allow for approximately 15% of Company sales to be predictable recurring revenue. As the Company grows its customer base through new design projects, this recurring maintenance customer base is expected to increase.

(2) Focus on Commercial and Industrial projects: The Company generates approximately $97K of revenue on average per customer. By focusing on larger projects in niche industries, the Company can reduce customer acquisition costs while maintaining high margins from lack of competition.

Growth Opportunities

(1) Further Pursue Niche Market Opportunities: Much of the Company’s recent growth is attributable to an increasing focus on niche industries that are not as widely serviced by the broader market. As a greater portion of the Company’s revenue came from these niche industries, total sales volume and margins grew substantially. Building a reputation in these market segments could lead to sustained competitive advantage and superior financial performance.

(2) Increased Industry Affiliations: Part of the Company’s recent growth is due to revamped sales efforts and cementing a reputation within the industry. Many industry associations exist that Company has not pursued membership for. These memberships may increase recognition among customers and other industry operators, which could bolster sales in the future.

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Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this Commercial and Industrial Mechanical Contractor for sale!

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Financial Performance

  • Year End Dec 2022 Revenue

    $11,830,755

  • Year End Dec 2022 Adjusted EBITDA

    $2,204,718

  • Real Estate Value

    $550,000





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