Generator Service and Distribution Business with Recurring Revenue
With over 25 years in business, the business is an authorized dealer of one of North America’s leading generator manufacturers. The company offers residential and commercial generator installation, maintenance, and repair services. The business has licensed gas fitters and electricians capable of providing high-quality service, achieving a 95% customer retention rate. The client base is comprised of a mix of residential, commercial, and industrial clients.
The business's revenue comprises new installation/project-based and recurring service revenue, split approximately 40/60, respectively. With a CAGR of over 8% over the past four years, the business demonstrates consistent revenue growth and promising prospects.
The generator market is a thriving industry, having surpassed $5.5 billion in 2023. Projections indicate that this upward trajectory will continue, with a 2% CAGR, reaching $6.1 billion by 2028. Several key factors are driving this growth, including the increasing frequency of severe weather events leading to power outages, the growing demand for uninterrupted power supply, and the need to address aging power grids and escalating data center outage costs. Furthermore, developing infrastructure and real estate growth present additional opportunities for market expansion, making this an exciting time to enter or expand within the industry.
The business has low owner dependence. The current owner oversees operations and business development and will assist the new buyer in an advisory capacity for a negotiated transition period. This is an ideal opportunity for an experienced HVAC or mechanical contractor to add generator sales and servicing to their business or another generator service and installation business that wants to expand its client base.