Hawaii HVAC & Metal Fabrication W/Real Estate

Business Overview:

We are presenting an extraordinary opportunity to own a successful HVAC and sheet metal fabrication business, inclusive of its fee owed real estate (office, fabrication shop and warehouse), in the heart of Hawaii’s paradise.This well-established, long tenured, and highly reputable HVAC company is now available for acquisition due to the pending retirement of the owner, presenting buyers with a golden opportunity to build their legacy in the Aloha State.

This company services commercial, governmental, and residential customers with focuses on: HVAC sales, service and installation, duct fabrication, ductless A/C services, heater repair and installation, A/C and duct repair, architectural sheet metal fabrication and installation.They are non-unionized and do both prevailing and non-prevailing wage jobs.Their current scope of work is about 59% metal fabrication and 41% HVAC services.

The fundamental drivers for their work include Hawaii’s general economy and population growth, contractor work (primary commercial, residential and government), and (indirectly) the health of the Hawaii visitor economy, which is one of the largest individual segments of the Hawaii economy.Their future demand looks strong.

In 2023 their sales were $3.09 million which generated $554,507 of Seller’s Discretionary Earnings (“SDE”) after normalizing for market-based lease rent (income tax return-based data).

The building used by the Business is owned by an affiliate of the Business owner.It has 9,100 square feet of interior space, on ½ acre of land in a new, centrally located industrial park. By owning this real estate, the Business owner saves $194,400 per year in third-party lease rent.

For the YTD November 30, 2024 period, their sales were up 13.6% to $3.04 million which generated lease rent normalized SDE of $734,419 and total cash available for business and real estate debt service of $912,619.

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Property Features and Assets:

• Status: Real estate owned by an affiliate of the business owner is included in the offering.
• Low cost and close to customers
• Building size: 9,100 Square Feet.
• Fee simple
• ½ acre of land in new industrial park
• Current Annual Real Estate Operating Expenses including Real Estate Taxes: $25,900, included in the business expenses.
• Valued at $3.5 million

Market Competition and Expansion:

• Modest direct competition
• The Hawaii market continues to do well as the commercial and residential construction market is healthy and growing.
• The first growth opportunity for a buyer is to focus more on sales and marketing activities since they do virtually no marketing.
• Expanding their work in commercial and residential AC service and repair to a broader array of customers.
• Market on other Hawaii islands

Reason for Selling:

Additional Details:

Documents:

Relevant Links:

• View more Hawaii businesses for sale
• View more Businesses For Sale in the same industry
• Sell a business online
• Find a business broker