Plumbing, Heating and HVAC Business With Its Building, Central Minnesota, Seller Carrying on a 30 Year Amortization

The part that makes this rare

Thirty year paper from the seller, and the building the business operates from.

The seller is carrying a substantial part of the purchase price at about five percent, amortized over thirty years, with the balloon six years out. A thirty year amortization is not something a lender writes on the goodwill in a service business, and it is what keeps the monthly note payment small relative to what the business earns. The financing is split into two notes, one against the operating business and one against the real estate, and both are subordinated to the senior lender.

The real estate is the second half of the story. The business has always rented its building from a property company owned by the same person who owns the business. An independent appraisal of the building, prepared for the seller's bank, puts market rent well below what the business pays today. Buying the building with the business replaces that rent with the ordinary costs of ownership, which shows up directly in earnings.

Two independent appraisals, both prepared for a lender

The equipment and vehicle fleet was appraised in October 2025 by an independent appraiser for the seller's bank, with the US Small Business Administration named as an intended user. It reports fair market, orderly liquidation and forced liquidation values, and even the forced liquidation figure is a meaningful share of the business price. For a service company, that is unusually strong hard asset coverage behind the goodwill.

The building was appraised separately for the same bank the same month. Both appraisals are in the package.

At a glance

What we can show you before you sign.

Industry	Plumbing, heating and HVAC servicesResidential and commercial service, repair, replacement and installation, with licensed plumbing and electrical staff
Location	Central MinnesotaExact town and address disclosed after NDA
Purchase price	$4,300,000
What is included	The business and its buildingVehicles, equipment, trade name, phone numbers, websites, customer lists and goodwill, plus an office and warehouse building on under an acre of industrial land
Price allocated to the business
Price allocated to the building	Independent appraisal in the package
Cash to seller at closing
Seller financing	Two subordinated notes, about five percent, thirty year amortization, six year balloon
Monthly seller payment	Combined across both notes
Senior financing	To be arrangedClosing is contingent on the buyer obtaining financing. The seller's existing bank is the anticipated lender
2025 revenue	Per the filed federal return
2025 EBITDA, per the filed return	Before the related party rent
Related party rent paid today	Ends when the building transfers
Market rent, independent appraisal
Equipment and vehicles, appraised	Fair market value. Orderly and forced liquidation values also in the package
Building, appraised as-is	Independent appraisal for the seller's bank
Employees	About seventeenIncluding a general manager, master licensed plumbers and a licensed electrician
Owner's role	Owner, with a general manager running the day to daySix months of transition support after closing, and a five year non-compete
Legal structure	Minnesota S-CorporationAsset sale. The building is held by a separate company owned by the same person
Accounts receivable	Retained by the sellerBuyer arranges its own working capital
Earnest money	Fully refundable through closing
Closing	Within ninety daysOf the effective date of the purchase agreements

The business

A long running local trade with a manager in place and a fleet on the road.

The company does what every household and commercial building in a cold climate needs done: furnaces, boilers, air conditioning, water heaters and plumbing, installed, serviced and repaired. It has operated for more than twenty five years, carries a fleet of service vehicles and a substantial equipment base, and runs day to day under a general manager rather than the owner. The team includes master licensed plumbers and a licensed electrician, which matters in a state where plumbing work runs under an individual's licence.

Revenue has been steady over three years on the filed returns, and the first seven months of 2026 are running ahead of that pace on the company's own statements. The seller also reports a backlog of sold work and additional contracts beyond the normal recurring service.

The package includes three years of filed federal returns, the 2025 statements, the 2026 year to date statements and both appraisals. As with any acquisition, buyers should complete their own due diligence.

Where the upside is

Most of the upside is structural.

The strongest levers here come from owning the building, from an appraised asset base, and from seller financing that is longer and cheaper than a lender would typically write.

End the related party rentToday the business pays rent to its owner's property company. Once the building transfers, that payment is replaced by the ordinary costs of owning it: property tax, insurance and upkeep.
Lean on the asset baseAn independent equipment and vehicle appraisal prepared for a lender, with the SBA named as an intended user, gives you a documented collateral figure to take to your own bank. An asset purchase also resets depreciation on everything you buy.
Keep the licensed peopleMaster licensed plumbers, a licensed electrician and an established general manager are already on the payroll. Retaining them is the operating plan, and the purchase agreement obliges the seller to encourage key employees to stay and to cooperate on licence transfers.
Grow what is already growing2026 is running ahead of prior years on the company's own statements, and the seller describes sold work stretching into the autumn. Service agreements, technician utilisation and pricing are the ordinary levers in this trade, and none of them has been pushed hard by an owner preparing to sell.

The seller keeps the accounts receivable, so buyers should plan working capital for the first collection cycle. Senior financing is still to be arranged, and the lender will set its own requirements. We recommend building your own model from the returns and the appraisals.

Who this fits

Who this fits.

A trades operator adding a territory. An existing plumbing, heating or HVAC business gets a licensed team, a fleet, a building and a customer base in one step, and already knows how to run the monthly books properly.

Buyers who want long, cheap paper. About five percent on a thirty year amortization with the balloon six years out, split across the business and the building. The long amortization is what keeps the seller payment modest.

Buyers with working capital. The receivables stay with the seller, so a buyer who can carry payroll and materials through the first collection cycle is well placed.

Buyers who value documentation. Three years of filed tax returns and two independent lender appraisals give a documented starting point for your own diligence.

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