- Established Leadership and Reputation in Residential & Commercial Sector: Established over 20 years ago, this business is a leading and well-established player in the Plumbing & HVAC sector in Southern Ontario. Serving both residential (80%) and commercial clients (20%), its long-standing reputation highlights its reliability and success in the industry.
- Robust Revenue Model: The company has a basket of offerings which includes Plumbing (70%); HVAC & other maintenance services (30%). The company boasts a highly attractive revenue model, with 90% of its plumbing income derived from service-based work. This consistent revenue stream is bolstered by a diverse and expansive customer base, ensuring stability and minimized risk.
- Skilled Workforce and Streamlined Operation: Business is driven by a dedicated, loyal, skilled, and professional team, crucial in optimizing operations and enhancing profitability. The company employs 37 dedicated staff members (including the owner) out of which 23 are unionized technical professionals – licensed plumbers, gas fitters, HVAC journeymen and 14 are non-union administrative professionals led by a General Manager overseeing all operations. The streamlined operations and structured team provide a solid foundation for continued success.
- Smooth Transition with General Manager: The business is currently owned by an absentee owner who is preparing for retirement. The transition will be seamless, as the owner’s minimal responsibilities—such as quoting residential jobs and handling customer service—are efficiently managed by the existing General Manager and a capable team. With employees committed to their roles, operational continuity is well-supported.
- Solid Financial Performance: The company has demonstrated steady revenue performance with figures of $7.5M and $7.7M in FY 2020 and FY 2021, respectively. Although there was a decline to $6.3M and $6.4M in FY 2022 and FY 2023, this was offset by significant profitability improvements due to operational efficiencies and cost management with average SDE of $350K in last 2 financial years.
- Potential for Massive Growth and enhance profitability: The seller projects FY 2024 revenue to reach $7.2M, driven by aggressive marketing and an enhanced digital presence, with a focus on commercial sector revenue. As of August 2024, the company has secured approximately $5M in commercial contracts through 2024 bids—an impressive turnaround from FY 2023, which saw no commercial project bids. This growth follows the company’s unionization in FY 2020, allowing entry into the commercial market. Operational streamlining over the past two years has improved profitability, and according to the seller, there remains significant potential for further business optimization and profit enhancement.
- Diversified Customer Base: Business customer base is highly diversified, with over 5,000 unique clients annually. No single client dominates the revenue stream, with the top five customers accounting for only approximately 10% of total revenue over the past three years. This broad customer base contributes to revenue stability and growth potential.
- Valuable Assets Included: The business price encompasses approximately $473K of Assets comprising of Vehicles of approximately $401K and Equipment valued at approximately $72K.
- Expansion Opportunities: The business is well-poised for substantial growth through geographic expansion and enhanced marketing strategies. The potential for building a strong brand presence, especially through digital marketing. As demonstrated in FY2024, there is a huge potential for expansion into commercial sector supported by a unionized technical staff. An addition of a dedicated business development manager to focus on the commercial sector would further provide opportunities for scaling operations. Additionally, the company is expanding into electrical solutions, potentially opening new revenue streams.
