Commercial & Industrial Heating & Cooling Solutions Business
Location
Burlington, MA — Immediate Boston area to North of Boston
Industry
Business Broker
Situation
Two brothers launched this commercial HVAC company on April Fool’s Day, indicative of their level of confidence as to if they could make a go of it. More than 30 years later, the brothers had built a successful business and were ready to retire. Their CPA referred them to BayState Business Brokers where they met business broker Brian Labonte.
BayState Business Brokers’ Approach
Brian and the two owners connected immediately as they discussed their business, and Brian explained the process of taking the business to market. After Brian reviewed the financials and presented the valuation, the owners surprised Brian by doubting they would get the suggested asking price. They trusted Brian as their business broker to market their business for $1,675,000.
Two letters of intent (LOIs) were submitted, and Brian and the owners evaluated each of them, one from an individual buyer and the other from a small private equity group.
The offer from the private equity group was a solid offer with better terms and gave the sellers the comfort that their employees would be treated well and taken care of. The private equity group was in the process of acquiring another HVAC company but chose to acquire both in parallel due to the attractiveness of this business.
Results
Since determining the business valuation to go to market, business broker Labonte highlighted how the company’s performance had exceeded projections for multiple quarters. Results for 2023 exceeded projections and 2024 was outperforming expectations as well. With the revised forecast, the buyer offered more than the initial asking price to the delight of the sellers.
The private equity group successfully acquired a solid HVAC business with recurring revenue streams and the two owners were able to achieve their goal of moving on to retirement.
What Our Clients Say
Brian was great to work with. Always kept us updated and answered all phone inquiries. Wouldn’t have been set in retirement without his help. He definitely earned his commission.
Bob Walker
Seller
