New Jersey HVAC-R and Lead Remediation Company

Business Description

For sale is a 43-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.

Support staff members include an office manager, an HVACR service manager, an HVACR manager, and on-site supervisors. Some of the staff are long-term employees, and the owners believe the employees will remain with the buyer. The owner will need an HVACR license or compensate an employee who also holds the license. General business, management skills, and construction knowledge would be beneficial.

2021 2022 2023
Revenue $2,543,989 $2,854,591 $3,331,119
Earnings $179,423 $296,967 $334,420

Financial Overview

Asking Price: $1,100,000

Revenue: $3,092,855 (2 Yr Avg)

Income: $315,694 (2 Yr Avg)

Multiple: 3.5x

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