Asking Price – $3,000,000
| Gross Revenue | $3,744,000 | EBITDA | $762,000 |
|---|---|---|---|
| Location | Harris County, TX |
Sellers' preference is to sell to someone with HVAC experience.
This company is a premier provider of sales, service, and parts for industrial ice-making/refrigeration systems. They serve as a key distributor for a major industrial ice machine manufacturer, for the State of Texas. The business provides specialized installation, repair, and maintenance for large-scale industrial ice machines (2,000–10,000 lbs. capacity). The company serves a high-profile client base, including government agencies and major regional restaurant and retail chains. Operating with low overhead, the business is currently home-based and delivers services directly at client sites.
Top Things to Know About This Business
• Business Model: The company operates as a hybrid distributor and service provider specializing in industrial ice-making systems. Its model is built on three primary revenue streams: high-margin parts sales, large-ticket equipment sales, and technical service labor.
• Dominant Market Position: The company operates as the primary distributor throughout Texas. The manufacturer refers all direct inquiries back to this company, creating a powerful defensive moat around their territory.
• Uncaptured Demand: The business is currently turning down refrigeration work with current and past clients due to capacity constraints. A new owner could immediately capture this revenue by hiring additional technicians.
• Secure Government Contract: The company holds a contract with a government agency, where equipment is replaced on a consistent 2–5 year cycle.
• High-Margin Parts Revenue: A significant portion of revenue is generated from high-margin parts sales, driven by their status as the "go-to" source for the manufacturer's equipment.
• Lean Operations: The business is run efficiently with minimal overhead and no commercial rent expense.
• Turnkey Operations: Company is guided by well-defined systems and processes.
• Clean Books and Records: The seller runs ZERO addbacks through the company.
• Robust Cash Flow Margin: Company has average 20% cash flow margins over the past 4 years.
• Established Brand: Excellent reputation for outstanding on-time and on budget work.
• Marketing: 99% of business comes from referrals and repeat business.
• No Website: The company has no website or real online presence.
• Longevity: Established in 2001, the company has been an industry leader for 25 years.
• Assets: $5,000 in fixed assets, $150,000 in Service Fleets and approximately $32,000 in inventory. To be trued up at the time of sale.
• Training: Seller will train free of charge for one month to ensure smooth transition.
Special Notes
• Cash Flow: The reported cash flow figure reflects a four-year average, intentionally structured to normalize for customer equipment replacement cycles.
• Licensing: Operation of this business requires a Texas Air Conditioning and Refrigeration (ACR) Contractor license. A qualified license holder must be on staff or acquired as part of the ownership transition.
• Customer Concentration: The company's top three clients collectively account for approximately 94% of revenue. This is partially mitigated by the nature of those relationships, which include a government agency under a formal contract with a structured replacement cycle and established regional chains with long tenures.
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