RETIREMENT: CASE STUDY

RETIREMENT:
Rocky Mountain High
Coffman & Co. Heating & Cooling
Sellers of this family HVAC business, a husband and wife team, were ready to hand over the keys and ride of into the sunset…
OVERVIEW AND BACKGROUND
Coffman & Co. was a residential heating, air conditioning, plumbing, and electrical contracting company that served the Denver metropolitan area. It had been privately owned by a husband/wife team since 1991 and boasted a customer base of 65,000+. The company's primary operations were residential HVAC services.
Denver, CO.
coffmanco.com
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GROWTH AND EVOLUTION
1
1991
Revenue around $500,000
2
1997
Revenue over $1,700,000
3
2004
Expanded to four locations
4
2008
Survived great recession, consolidated to one location
5
Pre-Sale
$3.5m-$4m in sales with Normalized EBITDA of $550K-$600K annually
EXIT PLAN
Owner's Situation
The owner of Coffman had reached an age where he was not prepared to invest large sums of money in growth. Nor did he have a succession plan or children in the business to take over.
Selling Strategy
However, he was willing to sell the business to the right buyers/operators. Pat had a particular type of buyer in mind who could work with the internal team to continue Coffman's legacy.
Leadership Transition
Coffman had a longtime employee who would step into a leadership role, making the transition smooth and worry-free for the buyers, sellers, and employees.
TRANSACTION PROCESS
Financial Analysis
Good Hope Advisors analyzed Coffman's financials to determine an estimated valuation for the business based on the current market conditions.
Valuation Presentation
Good Hope presented the estimated valuation, multiples, and pricing range, with sights set, as always, on pushing for the top of that range.
Buyer Outreach
Good Hope commenced outreach to our curated database of private equity investors and strategic buyers, screening dozens of buyers to find the right fit.
Efficient Process
This saved everyone time and effort in the acquisition process, allowing suitable acquirers to get through, followed by a successful outcome.
CLOSING A DEAL
Introduction
In 2017, Good Hope Advisors introduced The Seer Group to Coffman.
Due Diligence
Following initial reviews, in-person meetings, and due diligence, etc.
Successful Sale
Coffman closed the sale of the business to SEER HVAC platform.
Favorable Outcome
The deal closed at a higher-than-expected value (!) and favorable terms.
This allowed the Quinlan's to transition away from Coffman while being able to sleep at night knowing the business and its employees were in fantastic hands.
TODAY
Expanded Reach
The Seer Group now boasts a location map that covers most states west of the Rockies and up and down the entire West Coast.
Coffman's Legacy
Coffman & Co. is a big part of that.
Retirement Success
The Quinlans spend their time traveling, enjoying time with their grandkids, and a well-deserved retirement they have earned.
SUCCESS STORY
1991
Founded
Year Coffman & Co. was established
65,000+
Customers
Loyal customer base built over decades
$4M
Peak Revenue
Annual sales before successful exit
2017
Acquisition
Year of successful sale to The Seer Group