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Established in 2022, this residential HVAC service, repair and replacement company serves the Wasatch Front corridor of Utah from a home-based operation with take-home service vehicles - no shop, no warehouse, and no facility lease to assign at closing. 2025 revenue was $821,991 on normalized seller's discretionary earnings of $284,518, a 34.6% SDE margin. Revenue grew 67% between 2023 and 2025, and July 2026 set a company revenue record. What makes the business unusual is how it gets its work. Total 2025 advertising spend was under $400. Roughly 75% of revenue arrives through earned preferred-vendor standing inside multiple national home-warranty networks and an exclusive property-management relationship - channels awarded on measured performance sustained over three to four years, not on marketing budget. The largest network's own vendor portal reports 1,710 completed work orders, a 95% claim approval rate and a 91% completion rate, each above the network's required threshold, and about a third of regional HVAC dispatch volume. A better-funded competitor cannot advertise into this channel; it has to out-perform in it, from behind. Work mix is approximately 49% system replacement, 41% service and repair, 5% maintenance agreements, 3% indoor air quality and duct, and 2% new construction - almost no exposure to the cyclical construction segment that buyers discount. Recurring revenue comes from 57 monthly maintenance agreements carrying a three-year workmanship warranty conditioned on continuous membership, with no churn to date. Reputation is near-five-star across every major review platform, earned entirely on referral and repeat work with no advertising or reputation-management spend. The team is three field employees plus the owner-operator: a lead installer carrying the trade experience, a service technician with three years, and an apprentice who started in July 2026. All positions are at-will and no employment agreements transfer. Every operating process runs on commercial field-service software rather than institutional memory, which is what makes the owner's role replaceable by a general manager, costed at $90,000 in the financial presentation. Included in the sale: service vehicles, complete service and installation tooling, about $6,000 of parts inventory at cost, the field-service software configuration and flat-rate pricebook, the full customer database and service history, business name, phone number, website and online review history, and active vendor approvals and warranty portal access. Growth levers a buyer inherits unused: consumer marketing has never been switched on; additional trades can be activated through the existing warranty portals; commercial tenant-improvement work is untouched; indoor air quality and duct services are already offered but under-sold; and the maintenance agreement base has substantial room to grow. None of this is priced into the asking price. Financing: SBA 7(a) qualified. At the asking price with a 10% equity injection, debt service coverage is approximately 1.53x after paying a new owner a $90,000 market salary, against the 1.25x minimum under SBA SOP 50 10 8.1. Buyer requirement: Utah replaced the S350 HVAC license with the H100 classification in April 2026, and the licensed entity must have a qualifier. You do not need to hold the license yourself. Under Utah Admin Code R156-55a-304 the qualifier can be an officer or manager paid W-2 wages, with no ownership, working a minimum of twelve hours a week, so an operator buyer hires a qualifier rather than becoming one. The seller's license does not transfer, and on an SBA deal he cannot serve as your qualifier. The seller has identified a licensed contractor who would consider the role. Reason for sale: owner relocating. Structured training and transition included on compensated terms. Full financials, filed tax returns and a complete data room are available to qualified buyers under executed non-disclosure agreement.
The company is a commercial HVAC service that provides fast and reliable service to long term clients. They specialize in preventative maintenance contracts (30+ current contracts) with building owners that include tune-ups, diagnostics, checking, fixing, and replacing filters, belts, freon, and more. Another major service provided is the installation and maintenance of Alerton brand DDC (Direct Digital Control) HVAC systems. Various other projects are added to their workload throughout the year when needed. The company has a very reliable base of revenue and has grown steadily since 2014 with 2021 being a down year due to a hold on new projects starting in 2020 related to Covid restrictions. Revenues are directly related to current relationships with building owners. There is no budget for marketing or advertising as it is not necessary. The ideal new owners should have extensive experience in HVAC and all related licenses necessary to do work in the state of Utah. Established HVAC companies looking to grow through acquiring maintenance contracts would be a good fit.
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.
