What’s your hvac business worth? Value it in 90 seconds.
HVAC businesses are typically priced on one of two earnings figures depending on size: Seller's Discretionary Earnings (SDE) below roughly $1M, and 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 trades is decided by a handful of specific, buyer-visible factors.
Every input stays in your browser. The tool benchmarks each KPI against real Main Street peers in your industry, layers per-KPI multiple lifts on top of the category baseline, and shows a live range with the reasons behind it.
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%.
What’s your hvac business worth?
Enter the numbers that actually drive hvac valuations. We benchmark each against real Main Street peers and show you where you land.
What moves the multiple
The metrics buyers actually diligence in hvac.
Category baseline is 3x–4.5x SDE (below ~$1M SDE) transitioning to 5.5x–8.5x EBITDA above. Where inside that range a specific hvac business trades is decided by these operating metrics — the same ones a professional QoE surfaces on day one of diligence.
Maintenance agreement penetration
Percent of customer base on a recurring maintenance contract. Buyers pay premium multiples above ~40%.
Average revenue per truck / tech
Annualized productivity. $600K–$800K/year per fully utilized service truck is the benchmark for a top-quartile operator.
Service call conversion rate
Percent of diagnostic calls that convert to a repair or replacement. Above 60% is strong.
Average ticket size
Blended average of service, repair, and install revenue per completed job. Rising ticket is a leading indicator of team quality.
Deal structure norms
How hvac deals actually close.
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.
Recurring-revenue anchor for hvac: 40% of revenue is the threshold that meaningfully lifts multiples. Businesses below that trade nearer the baseline low; above it, buyers underwrite at the top of the range.
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People also ask
Valuing a hvac business.
How is my HVAC business valued?
Below roughly $1M in Seller's Discretionary Earnings (SDE), most HVAC businesses are priced on an SDE multiple — typically 3.0–4.5x, moving to the higher end for operators with 40%+ maintenance-contract revenue and low owner dependence. Above $1M in EBITDA, buyers switch to EBITDA-based pricing at roughly 5.5–8.5x for well-prepared businesses.How long does it take to sell an HVAC business?
From engaging a broker to a signed purchase agreement, plan on 6–9 months for a Main Street HVAC deal (sub-$5M revenue). SBA-financed deals add 60–90 days to the close because of lender underwriting. Institutional deals with PE-backed acquirers typically move faster once an LOI is signed.What drives higher multiples for HVAC businesses?
Four factors move multiples materially: (1) maintenance-agreement penetration above 40%, (2) a general manager or service manager who runs day-to-day operations, (3) three years of accrual-basis financials with clear add-backs, and (4) commercial-service revenue mix (typically higher-margin than residential).Should I sell to a private equity platform or a self-funded searcher?
PE platforms typically pay higher headline multiples but expect the owner to roll equity and stay involved 12–24 months. Self-funded searchers pay 20–30% less on the top-line multiple but structure clean, SBA-financed exits where the seller can walk away in 90 days. The right answer depends more on your post-close life plan than on the raw dollar amount.How accurate is this hvac valuation estimate?
It's an initial diagnostic, not a formal appraisal. The engine uses baseline 3x–4.5x SDE / 5.5x–8.5x EBITDA multiples from published Main Street M&A data, then layers per-KPI adjustments using P25–P90 industry benchmarks. What it can't see is qualitative signal — customer-relationship durability, management-team quality, regulatory risk in your niche. Use it to see where your business lands against peers, then let a specialist broker validate against your actual books before you go to market.
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How buyers actually price Main Street businesses — SDE and EBITDA multiples, industry benchmarks, and the eight factors that move the number.
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Ready to talk numbers with a human
Validate the estimate with a specialist broker.
Free 30-minute consultation. Sukhrobjon (Rob) Ismoilov or a matched hvac specialist reviews your inputs against the current buyer set.