Location: Woodbridge, VA
The attached spreadsheet model is for the Dominion Services Heating & Air LLC, which is located in Woodbridge, VA, and currently listed for sale at $250,000. This model includes a pro forma income statement and balance sheet for Dominion Services based on market assumptions in the area and an analysis of the costs of capital and internal rate of return forecasted for the company. The model allows variables to be changed for all major inputs of the computations and includes citations for assumed values in the models.
In the model with the input values chosen, the company would have a weighted average cost of capital and internal rate of return equal to approximately 9%. This is assuming that we are another HVAC company that is purchasing Dominion Services. Dominion Services appears to be a small, family-run business that could have a lot of new business if marketed and expanded properly. We also
believe the buyer would be licensed for not only VA, but DC and MD too, thus expanding its business and bringing in a higher return.
For this reason, we believe the listed sales price for Dominion Services is a reasonable amount. However, if the buyer has no experience in the industry and doesn’t already have business across Maryland, DC, and Virginia, then we believe the company should not be purchased.