Similar businesses sell at 1.2x to 4.2x SDE. Compare live listings and connect with sellers.
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*****Please check your SPAM folder for NDA**** For more than 35 years, AJ Heating & Cooling has been a trusted name throughout the Michiana region, serving homeowners across Northern Indiana and Southwest Michigan. This established residential HVAC company has built a loyal customer base of approximately 3,200 customers and a reputation for quality service, reliability, and long-term customer relationships. The business provides a diversified mix of heating and cooling installations, service and repair, water heater replacement, maintenance, indoor air quality solutions, and emergency HVAC services. A balanced revenue mix and highly fragmented customer base create stable year-round demand with no significant customer concentration risk. Financial performance has demonstrated strong momentum. Revenue has grown from approximately $634,000 in 2023 to more than $1.09 million on a trailing twelve-month basis. Seller's Discretionary Earnings (SDE) have increased to approximately $372,000, providing a compelling earnings profile for an owner-operator or strategic buyer. The company has earned strong local recognition, including a BBB A+ rating, and benefits from decades of referral-driven growth. Its established brand, extensive customer database, and reputation within the community create a strong competitive advantage that would be difficult and costly to replicate today. The current owner is preparing for retirement and is committed to providing a smooth transition. Continued involvement during the handoff period can help preserve customer relationships, operational continuity, and institutional knowledge, positioning a new owner for long-term success. Growth opportunities remain substantial. A buyer could expand the service territory, add technicians, implement maintenance membership programs, increase marketing efforts, pursue commercial opportunities, or broaden service offerings. The business provides a strong platform for both organic growth and strategic expansion. This opportunity is ideally suited for an HVAC operator, industry buyer, search fund entrepreneur, independent sponsor, or SBA-backed owner-operator seeking an established, profitable business in a recession-resistant industry where heating and cooling services remain essential regardless of economic conditions.
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8-year-old HVAC business located in Northwest Indiana with a 4.9-star Google rating and 5.0-star Facebook rating. Year over year revenue and profit growth have followed their business model primarily focused on Residential and Light Commercial HVAC Replacement, Installation and Repair. They have a substantial number of clients on installation labor contracts with spring and fall tune-ups, which leads to additional service work. 98% residential No refrigeration No new construction
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35-year-old residential heating and air company serving Northern Indiana and Southern Michigan. 35-year track record of providing quality service to long term customers. Well trained staff in place. The business currently has 80 active maintenance agreements in place and has completed 204 HVAC system change-outs over the past 12 months. Approximately 95% of revenue is generated from residential customers, with little to no refrigeration work performed. Less than 10% of the company's revenue is derived from new construction projects, resulting in a business model that is primarily focused on service, repair, and replacement work. The company primarily offers equipment from Amana and Rinnai and maintains a database of more than 3,100 active customers. Included in the sale is approximately $40,000 of inventory. Financial records are maintained using QuickBooks, and payroll administration is outsourced through ADP. The business does not currently utilize a CRM system, presenting an opportunity for operational enhancements and customer relationship management improvements. Additionally, there are no pending lawsuits or workers' compensation claims, providing buyers with confidence in the company's legal and operational standing.
National transaction benchmarks for building and construction business businesses.
Under $500K
$500K to $2M
Over $2M
A variety of factors can cause businesses to trade outside this range, including earnings quality, operational transferability, key-person risk, growth trajectory, and geography, so a listing priced above or below the typical multiple usually reflects real differences in the underlying business.
Cofounder & CEO
Key diligence, valuation, financing, and transition considerations for buyers evaluating building and construction business acquisitions.
Signed contracts, change-order patterns, and bonding capacity tell you what you're really buying; a big trailing year with an empty pipeline is a trap, and bonding is often tied to the owner personally.
Many trades require a licensed qualifier that may leave with the seller. Verify what you must hold before you can legally operate.
A plumbing or HVAC company with a service-and-maintenance base is worth far more than one living on new-construction bids — service agreements generate steady recurring revenue and replacement leads.
Receivables, retainage, and work-in-process tie up real cash between billing and collection; establish the need and whether it's in the deal.
The estimator, project managers, and lead crews carry the business. Identify the key people, their pay, and retention after close.
Trucks, heavy equipment, and related-party rent distort earnings. Tour the fleet, check deferred maintenance, and stress the discretionary earnings.
Answers to common buyer questions for this market.
