$8 Million HVAC Business

A major Cincinnati HVAC company engaged 12|21 Financial Consulting Group to assist them in scouting acquisition targets and approaching ownership on a possible purchase. 12|21 FCG was able to assist the owner in securing one of the best-known HVAC businesses in Lexington, Kentucky. The Firm led all negotiations with ownership and its CPA firm, leading to a deal that included seller financing, as well as a favorable rate term note with a local financial institution. This deal allowed the client to double his business revenues and have a presence in a less competitive market. 12|21 FCG also saw a significant improvement in the acquired company’s EBITDA due to the use of the client’s infrastructure and improvements in processes and procedures.

Prior to the acquisition search, 12|21 FCG was asked to work closely with the business’ in-house accountant to help develop a useable cash flow forecasting model, as well as KPI’s to allow management to monitor the business on a weekly basis, as opposed to only looking at month-end financial statements. 12|21 FCG successfully did these two things, which allowed for management to be in a better place to take on the acquisition and not allow it to cause a decrease in margin and earnings at the main Cincinnati office.

After the acquired company was settled into the client’s infrastructure and necessary processes and procedures were put into place, 12|21 FCG was asked to conduct a search for a full-time CFO for the new entity. This included all facets of recruiting and presenting two finalists to the CEO. This search was successful and helped take the business to its next strategic level of staffing.