If a private equity firm has not called your HVAC company yet, it is only a matter of time. The consolidation of the HVAC industry by PE-backed roll-up platforms is one of the most significant M&A stories in American business right now — and it is accelerating. Across the country, private equity buying HVAC companies…
Two HVAC companies. Same market. Same annual revenue. Same number of technicians. Nearly identical EBITDA. One sells for 4X. The other sells for 11X. Business value is typically determined by applying industry-specific EBITDA multiples to key financial metrics, using the formula: Business Value = (Net Income + Depreciation & Amortization) × Earnings Multiplier. That is…
You have built an HVAC company that actually works. Technicians show up. Jobs get done. Customers call back season after season. Revenue is real, the business is profitable, and you have put years — maybe decades — of your life into making it what it is today. Now you are asking the question that every…