Sell your HVAC business.

Since roughly 2018, private-equity-backed platforms have been building regional HVAC roll-ups aggressively. Wrench Group, Apex Service Partners, Sila Services, Ned Stevens, and Redwood Services are among the platforms most active in the sub-$5M-revenue Main Street segment. Multiples for well-run HVAC businesses with a maintenance-contract book have moved meaningfully higher — 6–8x EBITDA is common for anything above $1M in EBITDA with recurring revenue over 40%.

Beyond market conditions, three business-specific signals mean you're ready to go to market: (a) three years of clean accrual-basis financials, (b) reduced owner-dependence — either a GM in place or the operator working under 30 hours/week, and (c) meaningful recurring or contract revenue (40%+ is the multiple-moving threshold for HVAC). When those three are true, buyers underwrite you confidently and multi-bidder processes clear at the top of the range.

The single biggest driver of sale price isn't the buyer you find — it's how prepped the business is when you go to market. HVAC businesses that show up well-prepped consistently trade at multiples 20–40% higher than unprepped competitors. The prep priorities for HVAC specifically:

HVAC businesses are priced on one of two earnings figures depending on size: SDE (Seller's Discretionary Earnings) below roughly $1M, transitioning to EBITDA above. Applied to HVAC specifically, the base multiple ranges are 3x–4.5x SDE and 5.5x–8.5x EBITDA. Where inside that range your business lands is decided by these metrics buyers actually diligence:

The single most useful thing to know before you engage a broker is who the buyers are. For HVAC, four archetypes dominate: PE-backed HVAC platforms, Regional home-services holding companies, Self-funded searchers (sub-$1M EBITDA), Adjacent-service strategic acquirers (plumbing, electrical operators). Different buyers want different things and pay differently.

On the strategic / rollup side, the platforms most active in HVAC Main Street acquisitions right now include Wrench Group, Apex Service Partners, Sila Services, Redwood Services. On the individual side, self-funded searchers backed by SBA financing are increasingly competitive for sub-$1M-EBITDA businesses. The right buyer type for you depends on your target check size, your post-close plans (walk away vs. roll equity), and your business's specific profile.

The single biggest mistake HVAC owners make is accepting the first proactive offer that lands in their inbox. Strategic acquirers and PE-backed platforms actively source deals off-market at 15–30% below what a multi-bidder process would clear. If a platform is calling you unprompted, they're calling every HVAC operator your size in your region — they've done the math.

A real process means: (a) engage a vetted broker who specializes in HVAC, (b) run a targeted outreach to 20–40 curated buyers rather than a public listing, (c) collect multiple LOIs before choosing, (d) negotiate terms as hard as price — earnouts, rollover equity, transition period, and non-compete scope all move the effective deal value materially.

Most sub-$3M-revenue HVAC deals close as SBA-financed asset purchases with 10–15% seller notes. Above $1M EBITDA, structures shift toward PE-platform acquisitions with rollover equity for owners staying involved, and 12–24-month transition consulting agreements.

Closing timeline: signed LOI to signed purchase agreement is typically 90–120 days. Working capital target — how much cash/receivables/inventory transfers with the business — is negotiated during LOI and is a frequent source of last-minute deal friction. Have your CPA model the working capital baseline (average of last 12 months) BEFORE you sign the LOI so it doesn't become a negotiation lever mid-diligence.

Post-close transitions in HVAC range from 30-day handoffs (walk-away sales to searchers) to 24-month consulting arrangements (rollup deals with rollover equity). Match the structure to your post-close life plan — a transition that fits your goals is more valuable than a headline number.

Tax planning: work with a CPA who has done HVAC sales before. Asset sale vs stock sale, seller financing, installment sales, and rollover-equity structures all carry different tax implications. Model them 6+ months before close.