Similar businesses sell at 1.2x to 5.3x SDE. Compare live listings and connect with sellers.
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Amazing opportunity to own an HVAC company located in Prince Georges county. They are 80% residential, 20% commercial with no new construction or refrigeration. They have a CRM in place, flat rate pricing, and 150 maintenance agreements. The accounting system used is QuickBooks, 30 changeouts in the last 12 months, and the split is 65% plumbing, 35% HVAC.
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Amazing opportunity to own this 30 year old heating and air, plumbing and electrical company serving Baltimore, Northern Virginia and Delaware. 35% of revenue comes from plumbing, 60% from HVAC, and 5% from electrical. 25% residential customers and 75% commercial. less than 2% comes from new construction. Long term well trained staff in place. Great customer base and 110 maintenance agreements in place
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The company was established 16 years ago and currently maintains a database of 2,500 active customers. Its client base is primarily residential 90%, with 10% commercial, and it does not engage in new construction projects. The business's service offerings are divided between plumbing and remodeling 45% and HVAC 55%. Currently, the company has 110 active maintenance agreements. Accounting functions are managed using QuickBooks, while payroll processing is outsourced to ADP. The company utilizes Jobber as its CRM system.
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.
