Established 20+ Years - Very Profitable!
This company designs commercial HVAC and plumbing systems for new and existing construction. They have a stellar reputation among architects, general contractors, landlords, and developers who engage them to ensure that their HVAC systems are efficient, cost effective, and that the plans will pass inspection so that construction can begin. For 20+ years, they have supported construction projects throughout California and 12 other states.
Here’s how it works: An existing client, referral, or new customer with a construction project reaches out and requests a mechanical design and engineering quote. The client provides architectural plans, and if more information is necessary, a site visit, video, or Zoom will typically flesh out any remaining requirements. They charge a fixed price per square foot (which varies across types of projects) for each design. 80% of their bid requests are warm leads, so they are generally awarded the design work. They require a 50% deposit upfront and collects the remaining 50% prior to the plan check. They design the most suitable HVAC and plumbing systems, coordinating with the project architect, electrical engineer, and structural engineer. Their deliverables are construction drawings (via PDF), and once the client is issued a permit, the job is considered complete. They regularly get follow-up work after each design: they’ll consult on the construction (at an hourly rate) or get a second design job for the tenant improvements once a space is leased. They generate 50-60 designs each year, 30-40% are new construction and 60-70% are renovation; the HVAC systems are generally new in either case.
The owner has reached retirement age, and so it’s time to pass the business to a worthy successor. A Buyer should have HVAC or plumbing design experience or mechanical engineering background, personally or on staff. The current owner runs this as a lifestyle business, operating it home-based with ultra-low expenses. A Buyer can run the business "as-is" or operate the company for growth. They rely on their broad existing client base, but a successor who actively advertises and markets can grow the company. They don't currently pursue government projects: this is a huge market, which typically delivers higher profit margins than private projects.
This opportunity is ideal if you’re an engineer looking to own your own business, an existing company looking to grow through acquisition, or an electrical engineering firm looking to expand into MEP services. They have a stellar reputation built over 20+ years, so don’t waste your time building that from scratch! They are very profitable, and you’ll start working with established clients from Day One. High-profit businesses are in demand, and this opportunity will not last long. Reach out to the Agent today!