Burner Service
Background Information
This business has been in existence since 1986. The current owner started the business and has owned it for 22 years. It operates as a Sole Proprietorship. There is no real estate included as part of the sale as the business leases its space and could actually be a home-based business.
This is a company which deals primarily with oil and propane burner installations and service, serving the communities located in the White Mountains region of New Hampshire. The company is well known and respected in the area, and its service reputation is very strong. Service hours are 24 hours per day, 7 days a week.
The Industry
Although the fuel industry itself has become extremely challenging over the last few years, the installation and service aspect of the business has seen steady growth. Customers looking to install more efficient heating systems coupled with the inherent need to service existing systems has resulted in revenues staying very stable over the last 5 years or so.
The business is located in the White Mountains region of New Hampshire where winter weather patterns favor any heating related businesses. The season runs from October through May when heating demand remains strong, resulting in strong demand for repair and installation services. 24 hour service is required for a burner repair service to remain in business as emergency service is the backbone of the business during the prime heating months.
This company's primary competitors are the services offered by the larger oil companies doing business in the area such as Dead River and Irving. This company's success has come from supplying personal service to locals, by a local. They are available twenty four hours a day, seven days a week, and chances are that they will personally know most of their customers. The bigger guys are known to be more faceless and less approachable for many of this company's customers.
For further information on the state of the burner installation and repair industry in the White Mountains region of New Hampshire, contact the following entities:
ASME Upper Valley New Hampshire
Lawrence Root
603-448-0068
http://sections.asme.org/uppervalley/
Location
This company is located in the heart of New Hampshire's White Mountains. Although the company rents small office space with limited storage space, this business could easily be relocated into a new buyer's home with garage space for inventory storage.
The area is the hub of the White Mountains tourism industry. Myriad hotels, motels, condominiums, service businesses, restaurants, and residents make up the community. There are plenty of opportunities for a boiler installation and repair business to find and maintain customers. Consistent, high quality service is the key to repeat and referral business, and this company has maintained loyal customers because of its strong service reputation.
Physical Condition
The business is housed in a small office space that is in fair condition. There is nothing holding a new buyer to maintain occupancy in this space, although it is available should there be no other immediate alternatives for a new buyer. All vehicles are well maintained and are in good condition. The condition of the minimal furniture is good, and there are sufficient tools in good condition to handle the company's service needs.
Reason for Selling & Other Facts
The owner is ready to semi-retire after being involved in the business for the 22 years that he has owned it and many years previous as he was learning the trade. He is willing to sign a non-compete as he doesn't intend to create another boiler service company after the business is sold.
The current owner is willing to stay on and train for two weeks after the transfer of the business at no charge. He would also be interested in discussing the option to stay on to work for a new owner on a part-time basis.
Inventory of Furniture, Fixtures & Equipment
The office furniture, fixtures, and computers used by this company in its small office area, are valued at $6000. Tools are valued at $14,000. The majority of value in F, F, & E is in the service vehicles, as follows:
- 2006 GMC Van
- 2002 GMC Van
- 2000 GMC Van
- 1998 GMC Van
The total estimated value of the Furniture, Fixtures, and Equipment for this business is $61,000.
Inventory
The approximate total fair market value of saleable inventory to be left at closing is $70,000. An inventory of all items should be taken at the time of closing and the value adjusted (up or down) depending upon its results.
Not Included in the Sale
- Cash on hand
- Business bank accounts
- Accounts Receivable
- Accounts Payable
- Outstanding loans
- Any other security deposits and prepaid expenses
Hours of Operation/Employees
On call 24 hours per day, 7 days per week.
Employees: 3 Full-time, 1 Part-time, all paid hourly
Annual Sales Volume
Available upon completing a Confidentiality Agreement.
Expenses
Available upon completing a Confidentiality Agreement.
2003-2007 Profit and Loss Statements
Available upon completing a Confidentiality Agreement.
Ways to Improve the Business
The current owner believes that a larger geographic area can be covered with more employees and more vehicles as the demand is currently not met due to limited resources. Also, by having a licensed plumber as a buyer or hired on staff will allow the company to handle many aspects of boiler installation that it cannot currently do. This increased scope of service will positively and instantaneously increase revenues.
Recommended Listing Price (RLP)
The RLP justification for this business is as follows:
| The business has Gross Revenues of: | * |
| The business has SDE of: | * |
| Salable Inventory at Cost: | $70,000 |
| Furniture, Fixtures and Equipment: | $61,000 |
| TOTAL RLP: $233,900 |
*Available upon completing a Confidentiality Agreement.
Ownership Transfer Specifications
The current owners are asking $233,900 total for the business. He is willing to offer financing terms to a qualified buyer.
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