Business Description
For sale is a 44-year-old HVAC, refrigeration, and environmental abatement company in New Jersey. The company is in an industry-rich area within an hour’s drive of Manhattan, NY. It offers HVAC and refrigeration services for commercial, industrial, and public facilities. Environmental services such as lead remediation and asbestos abatement are provided to various Health Departments, schools, and residential properties.
Revenue per job ranges from $1K to $10K. Currently, there are 5 HVAC preventative maintenance contracts in place. HVAC and refrigeration account for 65% of the revenue and lead remediation accounts for approximately 35%. Earnings were down in 2021 due to added expenses from the Covid pandemic. In July of 2022, a new law regarding lead-based paint in rental properties went into effect. The law requires all non-exempt NJ rental properties to complete their initial Lead Safe Certification inspection upon their first turnover or within two years of the effective date. These inspections increased demand for lead remediation and made 2023 a profitable year.
The company currently has approximately $349K of lead remediation work in progress that has not yet been invoiced, plus approximately $278K of contracted lead remediation work that has not yet commenced, representing approximately $627K of current lead remediation work in progress and backlog. Based on current performance and the existing pipeline, the seller expects the business to generate more than $300K in Seller’s Discretionary Earnings (SDE) on a cash basis in 2026.
Operations are supported by an experienced team that includes office management, HVACR service and operational management, and on-site supervisors. Several employees have long tenures with the company, and ownership expects the team to remain following a transaction. A buyer will need to maintain the required HVACR licensing or retain and appropriately compensate a qualified license holder. General business and management experience, along with construction industry knowledge, would be beneficial.
Prospective buyers should be aware of an outstanding lawsuit that the sellers expect to be dismissed. Legal counsel is actively pursuing dismissal and currently estimates that resolution could occur as early as the end of September 2026. Resolution of this matter is required before the seller can support SBA financing for a transaction. Additional information will be available to qualified buyers as the matter progresses.
