Similar businesses sell at 1.2x to 5.3x SDE. Compare live listings and connect with sellers.
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This is a great family owned Louisville, Ky business that has been operating since 2019. They specialize in commercial refrigeration and HVAC repair. The staff is highly skilled and is able to repair all types of refrigeration from stand up refrigerators to large walk-in freezers and coolers. Their client list is extensive and consists mostly of single unit and multi unit restaurants. They perform work for some of the largest restaurant brands in the United States. The business has increased its revenue close to 20% for each of the past 3 years. Phenomenal growth!! This business is full of potential and just needs the right ownership to take it to the next level! A typical job begins with a service call, followed by on-site troubleshooting and diagnosis. When replacement parts are needed, the owner sources the necessary components and returns to the customer’s site to complete the repair. Most jobs are completed within approximately 3 to 4 hours, creating an efficient and flexible service model with limited facility overhead. The business is currently run by one owner/operator and his tech team. Its home-based model keeps overhead low while allowing the company to respond directly to customer needs in the field. This presents a strong opportunity for a buyer seeking an owner-operated service business or a strategic add-on in the commercial refrigeration, restaurant equipment repair, or HVAC service sectors.
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Fantastic opportunity to own an HVAC company in Louisville, Kentucky. They are 45% residential, 55% commercial with no new construction and no refrigeration. They have flat rate pricing in place, and currently have 230 residential, 33 commercial maintenance agreements. The accounting software they use is QuickBooks, and they currently have a CRM in place.
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.
