- Established Leadership and Reputation in Residential, Commercial & Industrial Sector: This company is a leading and well-established player in Ontario’s mechanical contracting industry. The Business, being the largest mechanical contractor in its region, specializes in HVAC, plumbing, piping and boilers, serving commercial, residential, and industrial sectors. Furthermore, the company is well-regarded for delivering high-quality, professional service with minimal call backs, and has become the go-to brand amongst customers in its region and beyond.
- Robust Revenue Model: The company has a diverse range of offerings, with approximately 60% of its revenue generated from the commercial sector, 20% from the residential sector, and 20% from the industrial sector. It boasts an attractive revenue model, with around 30% of its revenue coming from service-based work.
- Solid Financial Performance: The company has demonstrated a strong year-over-year upward trend in Revenue, Gross Margin, and Seller’s Discretionary Earnings (SDE) as a percentage of revenue over the past eight years. From 2017 to 2024:➢Revenue doubled to $35M
➢Gross Margins went up from 10% to 16%
➢SDE of $4.6M in 2024
- Diversified Customer Base: The business maintains a well-diversified customer base, with varied customer concentration year over year and no overreliance on any single customer
- Skilled Workforce and Streamlined Operation: The business is powered by a loyal, dedicated, and highly skilled team, which plays a critical role in optimizing operations and boosting profitability. The company employs a large team of committed employees across various functions, including unionized technical professionals, such as licensed plumbers, gas fitters, and HVAC journeymen, along with non-union personnel. This streamlined operation, combined with a well-structured team, lays a strong foundation for ongoing success.
- Smooth Transition with General Management: The business is currently owned by existing working shareholders who are seeking an exit strategy. The transition is expected to be seamless, as the ownership group is open to a 1-to-5-year transition plan under negotiable terms, with some shareholders willing to remain involved longer than others to ensure a smooth handover. With the existing working shareholders and a large team of dedicated staff committed to their roles, operational continuity is well-supported.
- Revenue Pipeline: With several key contracts in place, the company now has confirmed work extending well into FY2026.
- Quality Repeat Customer Base: The business is recognized as a preferred vendor by reputable companies and numerous institutional organizations. This customer base contributes to both revenue stability and growth potential.
- Valuable Assets Included: The business price encompasses assets of approximately $1.5M, comprising of Commercial Vehicles, Man Lifts, Trailers, Tools & Equipment. Approximately $1.2M of working capital included in the purchase price
- Expansion Opportunities: The business is well-positioned for substantial growth through geographic expansion and enhanced marketing strategies. There are further opportunities to leverage its long-standing brand presence by expanding into new regions and adding other trade or service verticals to become a leading provider of trade services in Canada and beyond.
