co. for sale/HVAC

ernie_3

Been wrestling w'a few questions lately. I own and operate a small HVAC co, out of Arl. Ma. Have way more work than I can handle. I just started my fifth year in business and have turned a profit every year. I'm probably too fussy for my own good. Can't find an employee to share the work load.
I've accepted an installation mngr's position w' a 'mid-cap'
company.I'd like to sell my company rather than dissolve and cash out. I have about 90k worth of contracts in place.
Would like to find a suitable buyer who will maintain the company name and work, w' integrity. Assets include a GMC one ton extended wheel base van w' 52k on it. Maintained well and still washes up nice. About 4-5k in stock. Sorry tools stay w' me. EJG MECHANICAL, Every Job Guarateed is the co. name. This name speaks for itself as far as my reputation. Tag line is "We'll keep you in heat or tell us to cool it!" My company work load is 75% installation 25% service, w' a customer base of around 120. I get plenty of referral work and have maintained good standing within my community. Email me if you're interested. I wouldn't take under 40k, so, serious buyers only. EJGMECH@yahoo.com

Ken_8

Don't do it.

As hard as it is to be a one man show, it is still your show and only yours.

I too have been very fortunate in business and the reason I went into it was because I was sick of working for morons who never had a clue. I rise and fall purely by my own doing. That reality is all I need. When you bail out on EJG you will join the swollen ranks of folks who are controlled by others - and typically hate their job.

Surely you can make more money with EJG? Surely you have total control over your life with EJG. I cannot fathom working for someone else. Unless of course, it is the offer of a lifetime and something I like more than what I do now. Speaking of which, I am looking at a little part time job doing something I do love. That being teaching.

I am 61 and want to retire to have more free time and start breaking 100 more than once or twice a year. My son is the heir apparent and more than qualified to run the show. I'd love to hear why you are contemplating a bail out of a successful business to work for someone else.

Care to share that with us?

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jim lockard

I'm with Ken

Hang in there Ernie. Take advantage of all you have accomplished. Best Wishes J.Lockard

hr

Follow your heart

Sounds like you are a one man shop? That can be a really tough go. I've been one man for 9 years now and it's a lot of work to turn a profit AFTER paying yourself a good wage.

Often I'm tempted, like you, to take a job with real hours, benefits, days off, someone else to answer the phone and return calls, etc, etc. Even one employee can make a huge difference to share the load. I have a great guy helping me part time and it really has lightened the load.

As far as selling your company, parts, tools and hard goods can be priced. Hard to put a price tag on good will, company rep, and potential customers. Your competitors will get you customers by default should you call it quits. No reason for them to pay for that :)Possibly a good YP position ads value esprcially to other HVAC companies in your area looking to expand. Your phone number is another sell- able item, if you have tracked traffic. Lots of ways to sell you number and get a percentage of the take form the number.

I could put you in toch with folks that have both bought and sold small plbg and HVAC companies recently.

Sit down, make a list of pros and cons, and talk it over with your family. It a decision you need to make before you burn out Good luck either way.

hot rod


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John R. Hall

Only you

You are the only person you have to answer to when making this decision. But I bet there are a lot of folks here who would love to bend your ear a little bit more. I'd be happy to talk with you or suggest someone to talk to about your business decision. Hey, maybe you can hold off and bend an elbow with folks at the upcoming ISH-NA show in Boston or Wetstock in Providence.

Bill Nye

What Ken said........

.......is true, you will be controlled by others. I have been on both sides of the fence. At first the new job is nice, but then, when some one starts telling you how to do your job, telling you when you can or can't have a day off, etc.

After being self employed it is hard as h^%$ to start taking orders. You sound like you have a lot of integrity and care about your customers and the quality of your work. What happens when your boss tells you to install an inferior product or cut corners and so on. That sense of pride and satisfaction of a job well done tends to get lost when you slave in a sweat shop low bidder contractor environment.

Think it over. I truly regret not sticking it out myself. I keep thinking I'll go back out...................

chris_28

a couple

of years ago, I went out of business. It truely was the hardest decision I have ever made. I didn't sell the business, just cashed out.
I went to work for another company. That was very difficult!!

I am no longer in the trades, or working for anyone else thank goodness. I still install a system here and there, but it has become more of a hobby than a job. Some of my old customers still hire me for their projects.

Things are not easy on either side, but you have to make the decision that is best for you and your family.

I think I am happier now than I have ever been, and looking back on it, I know I made the best choice!

good luck!!

Chris

ernie_3

a lot of good advice

Thank you for all your responses. I urge all to read Dale Carnegie's "Think and Grow Rich". I don't make my decisions flippantly. I carefully weigh things out ( I even draw a fulcrum, to see how pros and cons weigh out.)
My son quitting realy took the wind from my sails. I'm going to manage eleven installation crews. Their screening process is a true gauntlet. Which isn't to say a pidgeon brain can't slip through once or twice. I've tried w' 'some' degree of success to have boundaries w' my business.I can feel good about not failing. I've already found a potential buyer, one whom I've done business w' for the past five yrs. He has integrity in spades. I've greatly enjoyed bringing my personality and ability to customers homes, and have been doing so for 22 yrs. I will not part w' my tools as they have been true friends to me.
Again thanks for all your input.

Grumpy_2

One last caution

If I were in your shoes, I would be very cautious about signing a non-compete contract with anyone if it is requested of you. Many times the buyer of your company will ask for such a letter, but it will legally prevent you from returning to the ranks of the self employed for a specific period of time. That might be bad, especially if the new job you take turns out to be less than you had hoped for. Your future employer might also request it of you, knowing your past experience as a self employed person. Either way, best of luck on the decision that you finally make.

Leo

It is now his name

As an employee who worked for a large oil company (they buy out companies)and being an observant police officer prior to this field I have seen a lot of things. You stated you are very fussy about hiring the right help. The new company will OWN YOUR NAME and will be free to strengthen it or RUIN it. With the amount of people you will be managing in the new job the odds are there you will find a couple who will not meet your high standards.
Whatever your choice, good luck,

Leo

ed wallace

selling a business

good luck ernie as for signing a non compete claus in Ma. its un enforceble when it comes to the trades


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Grumpy_2

How so?

How could anyone hope to sell a business in Mass., without a buy/sell non-compete? Or better yet, why would anyone want to buy one, without one? What would prevent the seller from opening a new business the next day? He would have access to his old customers rendering their value moot to the new purchaser of his old business. It may be un-enforceable as far as an employee or member of a bargaining unit, but for the principles of the business? I'd never buy a business without that form of protection.

ed wallace

non compete clause ok

the theory behind it is you leve company A they require you to sign a noncompete clause that you wont work in the same field for 1 yr so this would prevent you from working at another company in the same field

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Grumpy_2

My point exactly

If I am buying your business, it will be one of two ways:
A.) Value based on fixed assets and inventory plus an agreed upon amount for the customer list, company name, phone numbers, goodwill, tax considerations, and a host of other intangibles. This requires a non-compete agreement and will result in a much higher sale price realized by the seller.

B.) No non-compete - negotiated value of fixed assets and inventory only. Read that as somewhere between $.30 and $.80 on the dollar.

Unless the seller is willing to sign a non-compete, he is better of selling the assets at an auction.