Similar businesses sell at 1.2x to 5.3x SDE. Compare live listings and connect with sellers.
NorthBase Advisors is pleased to present an established residential plumbing and HVAC business serving one of Colorado's fastest-growing communities. The Opportunity This is a proven, cash-flowing operation with a 57% EBITDA margin and zero advertising spend. The business is currently operating at full capacity and turning away work it can't get to. Business Highlights $527K TTM Revenue | $299K TTM Adjusted EBITDA | 57% EBITDA Margin 70% repeat customer base — built entirely on referrals and word-of-mouth 99% Residential. No new construction work 70% Plumbing / 30% HVAC Who This Works For This opportunity is well suited for a licensed plumber or HVAC technician looking to own their own business, or an existing home services platform looking to expand with an established customer base and a proven digital reputation. Our Process The CIM and data room are available upon execution of an NDA. Please click "Inquire" from the listing page to sign our NDA and access the data room.
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Wonderful opportunity to own a commercial HVAC company serving El Paso county in Colorado. They are 20% residential, 80% commercial with no new construction and less than 1% refrigeration. They have flat rate pricing, 209 residential and 150 commercial agreements in place, and 4,626 active customers in their database. The accounting software is QuickBooks and payroll is handled in house.
National transaction benchmarks for hvac 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 HVAC business acquisitions.
The most reliable indicator of HVAC business quality is the size and retention rate of its maintenance agreement (MA) base. Each MA typically generates $150-$300 in annual recurring revenue and produces 3-5x more replacement leads than non-agreement customers. Ask for MA count, renewal rate, and how long agreements have been in place. A business with 500+ active MAs and 80%+ renewal rate commands a significant premium over one without.
Businesses using flat-rate pricing are substantially more transferable than time-and-material shops. Flat-rate systems remove individual technician pricing discretion, making revenue more predictable, margins more consistent, and the business easier for a new owner to manage. When reviewing listings, flat-rate pricing is a positive signal. Time-and-material shops can be converted, but budget for a 6-12 month transition period.
Every state requires HVAC contractors to hold a valid license, and most are tied to a specific qualifying individual - typically the owner or a designated employee. When a business sells, the buyer must hold their own license, hire a licensed qualifier, or negotiate a transition period. Confirm the license situation early in diligence. Businesses where the owner is also the qualifier carry key-person risk that will directly affect valuation.
Residential HVAC businesses tend to be more transferable - customer relationships are distributed across thousands of households rather than concentrated in a few commercial accounts. Commercial-heavy businesses (50%+ commercial) warrant deeper diligence on contract terms, renewal dates, and whether contracts are assignable to a new owner. A residential business with a strong MA base and diversified customer geography is typically the most straightforward acquisition.
HVAC businesses are highly seasonal - revenue peaks in summer (cooling) and winter (heating), with shoulder months in spring and fall. Ask for monthly revenue breakdowns across at least two full years to understand the true seasonal pattern. Buyers who close during peak season may not see trough cash flow until months later. SDE calculations should normalize for seasonal working capital and owner compensation timing.
The presence of a modern field service CRM - ServiceTitan, FieldEdge, Housecall Pro - indicates the business has been run systematically rather than from the owner's memory. CRM-equipped businesses have documented customer histories, job costing data, and technician metrics that support a clean transition. Businesses without a CRM are not disqualified, but plan for 3-6 months of systems implementation post-close.
Answers to common buyer questions for this market.
