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SELL YOUR BUSINESS

Do you own a well-established HVAC business? Do you have residential or commercial preventive maintenance accounts?

If so, Cold Craft may be interested in purchasing your business.

Do It Right

We would prefer to see a formal business appraisal from a licensed broker.

The documents you will need to get your business appraised usually include an adjusted balance sheet and a "statement of seller's discretionary income. It’s a good idea to prepare a spreadsheet that shows the numbers from the business last three years tax returns, with the following adjustments noted to add back your salary, depreciation deductions, contributions, interest expense, interest income, and any other items of income or expense that are not integral to the business.

This document will show your discretionary income for each of the last three years. The adjusted balance sheet that you prepare (or ask your accountant to prepare for you) will adjust your company's assets to fair market value and eliminate assets and liabilities that a buyer will not acquire, such as cash and leased equipment.

Once you have those documents prepared, hire an experienced business appraiser to give you a professional opinion of your company's market value. This number will lend credibility to your asking price.

Preventive Maintenance
We also buy preventive maintenance and service accounts.

Asset Sale
You may want to consider structuring the transaction as an asset sale rather than as a sale of the business entity. An asset sale gives the buyer certain tax advantages and frees the buyer from certain legal liabilities attached to business ownership.
Give us a call at: (408) 374-7292 for more info.