Anyone have any EBITDA multiple comps for HVAC business?

searcher profile

February 08, 2020

by a searcher from Boston University - Questrom School of Business in Boston, MA, USA

I'm looking at a potential acquisition and was wondering if there are any EBITDA multiple comps out there? Business is approx. 1.0mm EBITDA with no service business and very little recurring revenue.

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Reply by a searcher
from University of California, Berkeley in Vienna, VA 22180, USA
According to Business Reference Guide HVAC companies typically trade at 3-4x EBITDA.

Higher multiples can be achieved for the following factors: limited owner involvement; high percentage of PMAs (product maintenance agreements); no, or limited, new construction exposure.

Number of recurring residential service agreements drives value. Number of recurring light commercial service agreements drives value. Age of fleet vehicles is a consideration. Age of field employees must be reviewed to see if there is a planned progression for the future. Cost of labor has been climbing due to a shallow pool of available and capable labor.
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Reply by a lender
in Yorba Linda, CA, USA
We recently had a Zoom session with the head of our HVAC vertical, and he shared his views on multiples. Here is the link to the recording if you are interested: https://zoom.us/recording/detail?meeting_id=vvau7xqGSiOOEN1nrBw5Vg%3D%3D
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