Northern New England Commercial HVAC/P&H with Expanding Service Div

Asking Price$18,350,000

Revenue$17,682,131

EBITDA$3,060,000

Cash Flow-

Description

Well-established commercial HVAC contractor serving a diversified base of commercial customers through longstanding, repeat relationships. The company performs primarily project-based work, supplemented by a rapidly expanding service and preventive-maintenance platform. Approximately 74% of revenue is generated from commercial construction and retrofit projects, including roughly 75–80% ground-up construction and 20–25% retrofit work. Service represents approximately 26% of revenue and grew approximately 150% in 2025, with 72% growth YTD in 2026. Residential service is limited to approximately 4.5% of total company revenue. The company’s annual preventive-maintenance contracts currently generate approximately $350,000 of recurring revenue. Existing agreements generally provide scheduled annual or semiannual cleaning and lubrication, while parts, repairs, replacements, and equipment upgrades are billed separately. This provides an attractive opportunity to expand recurring PM revenue while increasing service, repair, and replacement activity from the installed customer base. The customer base is diversified. Though there is some concentration and that is by design. The Company cherry-picks the GCs and Developers with whom they want to work. Financial Highlights: LTM revenue of nearly $18.0 million and normalized EBITDA of approximately $3.06 million. Projected 2026 revenue of approximately $20.0 million and normalized EBITDA of approximately $3.4 million. The 2026 forecast is supported by historical performance, contracted backlog, awarded work, and active project pipeline. The 2023–2025 federal-return periods generated a revenue-weighted average normalized EBITDA margin of 13.67%, while TTM indicates 17.3%. Backlog and Revenue Visibility The company has approximately $28 million of confirmed backlog (active or not started), with an estimated $8 million expected to convert into 2026 revenue from Sept-Dec. Based on awarded projects and the existing sales pipeline, backlog is projected to rebuild to at least $20 million by year-end 2026. This provides meaningful forward revenue visibility and supports continued growth in both project and service operations. Management and Operations The business is supported by an experienced management and operating team that reduces reliance on the owner, including a Vice President/Field Manager, Vice President of Finance, multiple estimators, and more than ten experienced field foremen. The company employs more than people and operates a fleet of roughly 40 vehicles. Transaction Overview The proposed transaction is expected to be structured as a stock purchase/F-reorganization. Consideration will consist primarily of cash at closing. The seller is open to retaining minority equity in NewCo, carrying a modest seller note, and/or participating in a limited earnout with upside potential. The seller is prepared to provide transition support for 12 months and may be available longer if appropriate.

Real Estate

$1Not Included in Asking Price

Building Size: 12500 sq. ft.

Furniture Fixtures & Equipment

$50k

Inventory

Included in Asking Price

Number of EmployeesFull-Time: 50

Year Established

2000

Reason Selling

After approximately 25 years of building and operating the Company, the owners are looking to transition the ultimate responsibilities of ownership and establish a better long-term balance.

Facilities & Assets

The business operates out of roughly 12,500 square feet of office and utility space. The premises will be leased to the buyer at a market rate of $7,000/mo, triple net for an initial period of 5 years to include annual escalators. Subsequent lease period of 3-5 years, with first right of opportunity should the property be offered for sale.

Support & Training

The owners believe the company is in a strong position to pursue an orderly ownership transition while it has experienced employees, customer relationships, backlog and operating infrastructure. An important objective is to identify a buyer who recognizes the value of the existing employees, culture and customer relationships and sees an opportunity to build on what is already in place. The sellers are prepared to support an orderly transition and are open to continued involvement in an appropriate transition or longer-term role if mutually beneficial.

Market & Competition

The Company competes with mechanical contractors of varying sizes, with the relevant competitive set shifting materially by project type, scale, geography, and point in the construction cycle. Long-standing customer and design-team relationships are a key advantage, reinforced by disciplined cost control, purchasing efficiency, and consistent estimating practices that keep pricing competitive without routinely sacrificing margin for volume. The Company competes on a combination of relationships, price, responsiveness, quality, estimating discipline, value-engineering/design-assist capability, broad self-perform trade coverage, and execution/closeout quality — adjusting bid aggressiveness based on backlog, manpower, and risk/fit rather than automatic margin concessions. Roughly 25 years of operating history, deep design-team relationships, and a complementary service/preventative-maintenance platform further differentiate the Company.

Growth Opportunities

The Company's future opportunity is continued selective growth within its established relationship base through commercial construction, design-build/design-assist, early budgeting, value engineering and major retrofit work while maintaining disciplined margins and project selection. An important combined-company opportunity is a more formal handoff from completed Construction projects to the Service division for preventive maintenance, service and future replacement work so the customer relationship remains within the organization rather than passing to a competitor after closeout.

Financing Options

Seller financing is available.Seller will consider various deal structures that may include holding a modest note.

Business listed by

Northeast Business Sales

Related Categories

HVAC business for Sale

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