Alternative Energy Systems Installer - Commercial Energy Efficiency

$3.4M

Revenue

$857K

SDE

3.7x

Multiple

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Full Editorial Writeup

This well-established and highly profitable alternative energy systems company serves the New York Metropolitan region, specializing in the sale, installation, and maintenance of energy-efficient... Businesses Franchises Brokers Loading... Supplier of Alternative Energy Systems Suffolk County, NY Asking Price:$3,200,000 Cash Flow (SDE):$856,580 EBITDA:Not Disclosed Gross Revenue:$3,395,024 Established:1992 Supplier of Alternative Energy Systems Business Description Profitable Business with Ongoing Maintenance Contracts This well-established and highly profitable alternative energy systems company serves the New York Metropolitan region, specializing in the sale, installation, and maintenance of energy-efficient solutions for commercial and industrial facilities. Founded in 1992, the organization has maintained consistent profitability throughout its operational history.The company delivers comprehensive turnkey installations that typically achieve 30-40% annual energy cost reductions for clients. Its technical excellence has earned recognition from prestigious organizations including the United States Environmental Protection Agency, Department of Energy, and Energy Star program.Revenue Structure:The business operates on a diversified revenue model with two primary income streams: sales and installation services (47% of revenue) and ongoing maintenance contracts (53% of revenue). This balanced approach provides both project-based income and recurring revenue stability.Target Market:The company serves a diverse commercial and industrial client base including nursing homes, assisted living facilities, condominium complexes, hotels, and manufacturing facilities throughout the New York metropolitan area.Financial Performance:The organization demonstrates strong financial fundamentals with consistent year-over-year revenue performance, robust cash flow generation, and reliable profit margins. The company has achieved profitability in every operating year since inception.Operational Excellence:With over three decades of market presence, the company has established proven operational systems, technical expertise, and client relationships. The maintenance contract component ensures ongoing customer engagement and predictable revenue streams.This opportunity represents an established market leader in the growing alternative energy sector with demonstrated operational stability and growth potential in an increasingly environmentally conscious marketplace. Ad#:2512929 Detailed Information Inventory: $125,000Included in asking price Furniture, Fixtures, & Equipment (FF&E): $63,000 Included in asking price Employees: 8 (6 Full-time, 2 Part-time) Facilities: Warehouse and Office Building Competition: Minimal Growth & Expansion: The market provides numerous opportunities for growth. The sellers will detail these opportunites for potential buyers. Support & Training: Sellers will stay on as needed to assure a smooth and successful transition. Terms to be negotiated. Reason for Selling: Retirement Business Location Location: Suffolk County, NY Real Estate: Leased Building SF: 4,000 Rent: $5,515.00 Demographic Information for Suffolk County Area Household Income Population Age Population Trend Population by Race/Ethnicity BizBuySell EDGE Financial Benchmarks for New York Electrical and Mechanical Contracting Businesses Gross Revenue Benchmarks Cash Flow (SDE) Benchmarks EBITDA Benchmarks BizBuySell EDGE Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Tony Torella Excelsior Business Group LLC View My Listings Phone Number 862-343-9970 Voice only (no SMS) Memberships & Certifications: Ad#:2512929 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number* Enter Phone Number Email Address* Enter Email Address Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. Optional: Check if you want to use IRA/401k funds ($75K+) to buy a biz - Guidant will call Send Message By clicking the button, you agree to BizBuySell’s Terms of Use and Privacy Notice Business Listed By: Tony Torella Excelsior Business Group LLC View My Listings Phone Number 862-343-9970 Voice only (no SMS) Your request has been sent. What Happens Next? is reviewing your details. A representative will reach out soon to discuss your options. Expect a response in 1-2 business days. Report an issue with this listing Similar Listings Electrical and Mechanical Contracting Businesses for Sale HVAC Businesses for Sale All Businesses for Sale in Suffolk County Highly Profitable Environmental Remediation & Abatement Contractor NY Asking: $4,250,000 Well Established HVAC Business | ~$6M Revenue Suffolk County, NY Asking: $8,500,000 Building & Poured Foundation Supplier, Hardware- Hudson Valley,NY Orange County, NY Asking: $3,200,000 Granite Garage Floors Franchise Opportunity Cash Required: $50,000 ©2026 CoStar Group Send Message Listing Shared via Email a6301374279843840.cdn.optimizely.com a6301374279843840.cdn.optimizely.com is blocked This page has been blocked by an extension Try disabling your extensions. 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Why we like it

Earnings quality is strong and unusually durable for a contractor. The business throws off $856,580 in SDE on $3.4M revenue, a 25% margin, and 53% of that revenue comes from recurring maintenance contracts rather than one-time installs. That recurring base is the part you underwrite to, and it makes the 3.74x multiple far more defensible than a pure project shop.
The moat is built on three decades of relationships and switching costs. Founded in 1992 and profitable every year since, the company holds maintenance contracts on critical building systems where ripping out an incumbent who knows your equipment is painful and risky. EPA, DOE, and Energy Star recognition add credibility that helps win institutional clients like nursing homes and hotels.
Market tailwinds are real and policy-driven. New York has aggressive building decarbonization and energy efficiency mandates, and clients are motivated by 30-40% energy cost reductions that pay for themselves. Rising electricity prices and tightening regulations make these systems a need rather than a nice-to-have, especially for commercial operators watching margins.
The customer base is recession-resistant and essential. Nursing homes, assisted living, condos, hotels, and manufacturers all need their HVAC and energy systems maintained regardless of the economy. Energy efficiency upgrades also get prioritized in downturns because they directly cut operating costs, which protects both the install and the maintenance lines.

How to improve it

Audit and tighten the maintenance contract book in the first 90 days. Map every contract by renewal date, pricing, and margin, then institute annual price escalators tied to CPI or labor cost. Many legacy contractors underprice long-tenured accounts, and even a 5-8% bump across a $1.8M recurring base flows almost entirely to the bottom line.
Systematize the install-to-maintenance conversion. With 47% of revenue from installs, every project should automatically roll into a multi-year maintenance agreement at close. Build this into the sales process and comp structure so the recurring base compounds instead of leaking after the warranty period.
Invest in lead generation beyond word of mouth. A 30-year-old firm with minimal competition almost certainly relies on referrals and repeat clients. A modest spend on a targeted outbound effort to property managers, facility directors, and condo boards across the NY metro could meaningfully accelerate the install pipeline.
Document and de-risk the owner's knowledge. With retirement-driven sellers and only 8 employees, key technical and relationship knowledge likely sits with the owners. Use the transition period to build SOPs, transfer client relationships to named team leads, and certify technicians so the business is not dependent on the founders.
Pursue available utility rebates and government incentives as a sales tool. New York and federal programs offer significant rebates for efficiency upgrades. Packaging and handling that paperwork for clients lowers their effective cost, shortens sales cycles, and creates a differentiated offering that competitors may not bother to provide.
Layer in equipment monitoring and remote diagnostics. Adding sensors and remote performance tracking to maintained systems creates a higher-margin premium tier and identifies replacement and upgrade opportunities before failures occur. This turns reactive maintenance into proactive revenue and deepens client lock-in.

Diligence notes

Verify the recurring revenue claim contract by contract. Pull the maintenance agreements, confirm they are written and assignable, and check terms, auto-renewal language, and historical churn. The entire investment thesis rests on that 53% being genuinely recurring rather than recurring-in-name-only one-year handshake deals.
Scrutinize customer concentration. With a client base of nursing homes, condos, and hotels, find out what percentage of revenue and cash flow comes from the top five accounts. Losing one anchor institutional client could materially dent the $856k SDE, and you need to know if any contracts are up for renewal soon.
Confirm the SDE add-backs and owner compensation. At a 25% margin, scrutinize what is included in the $856,580 figure, including the two owners' salaries, vehicles, and any personal expenses. Determine the true cost to replace the departing owners with a manager, since they appear to be hands-on operators.
Assess workforce and technician dependency. With only 6 full-time employees doing skilled energy and mechanical work, identify which techs hold critical certifications and relationships. Confirm wage rates, tenure, and retention risk, and whether any are family members who may leave alongside the retiring owners.
Review the lease and facility terms. The business operates from a leased 4,000 sq ft warehouse and office at $5,515 per month. Confirm remaining term, renewal options, and whether the landlord is related to the sellers, since an unfavorable or expiring lease could disrupt operations post-close.
Examine revenue consistency and the project pipeline. The listing claims consistent year-over-year performance but installs are inherently lumpy. Request 3-5 years of financials, current backlog, and signed install commitments to confirm the 47% install line is not propped up by a single large recent project.

Source

Originally listed on BizBuySell. View original listing →