Employee Acquisition of HVAC Company He Helped Build

HVAC company acquisition goes to a loyal employee who worked his way up from technician to GM and is now owner! Glad we could help.

Here’s the story behind the American dream:

Mark was a very loyal employee for over two decades at the HVAC company he worked for. He had moved up in the ranks from a technician all the way up to the GM in charge of all operations.

When the old man, (Tony), wanted to retire, he felt his loyal employee Mark was the perfect candidate for the acquisition to succeed him. Mark just didn’t think he stood a chance of getting a loan to buy an HVAC company worth $5 million. However….Tony knew us!

He called Ivanhoe Capital Advisors and told us the situation. When we received Mark’s PFS we noticed he had a retirement account with about $150K in it and another $50,000 in cash he could use.

He also told us he could get a gift from his father for about another $50K which brought him to about 5% of the total project cost. We asked Tony if he could inject another 5% on standby and he said he would do whatever it takes to get it done.

That’s when we knew we were in business!

Here’s the capital structure on this employee acquisition of an HVAC company:

• $4.5 Million loan amount (10 year term)
• $250K Cash injection from Mark (50K of that being a gift from Dear old Dad)
• $250K Injection from Tony the seller on standby (With new SOP he could start getting payments in three years which is very nice!)

$5 Million Total Project Cost

We had a deal and now Tony can enjoy sunny Sarasota, FL and not deal with the harsh Midwest winters any longer. Mark has changed his family’s trajectory forever and can really can develop some generational wealth if he plays his cards right!

He is super excited and grateful! Another deal closed, another success story for the books!