HVAC has been one of the most actively acquired trades in the United States for several years, and the buyers are not who they were. Alongside a local competitor buying a route, there are private equity backed platforms rolling up contractors region by region. They pay for different things, and knowing which you are talking to changes how you present the business.
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Service agreements are the asset
Recurring maintenance contracts are contracted revenue with a renewal history, and they are what turns a contractor into something a fund will buy. Installation revenue is real but lumpy and follows the weather and the housing market. A company with a large maintenance base prices differently from one with the same profit made entirely from replacements.
Owner dependence and the license
If the license the business trades under is held personally by you, the buyer needs a plan for that from day one. If you are also the estimator, the salesperson and the person the good technicians work for, the buyer is pricing a business that may not survive your departure. Both are solvable with time and neither is solvable during exclusivity.
Technicians are part of the deal
In a labor constrained trade the crew is a large share of what is being bought, and buyers will ask about turnover, pay rates and whether anyone is on a non compete. Retention arrangements for key staff are commonly agreed before closing, and a seller who has never documented pay structures should do that before going to market.
Questions people ask about sell my HVAC business
Do I need an HVAC specialist broker?
Not necessarily, but you do need someone who has sold trades businesses and understands service agreements. A generalist who prices your maintenance base as ordinary revenue is costing you money.
Will a buyer want me to stay?
Usually for a transition period, and longer if the customer relationships or the license are personal to you. That period is negotiated with the price, not after it.
What raises an HVAC company's price most?
Converting one off customers to maintenance agreements, and removing yourself from selling and estimating. Both take a year or more and both change the multiple, not just the earnings.