Does anyone have experience with industrial HVAC?

January 30, 2024

by a searcher from Harvard University in Philadelphia, PA, USA

Hi there! I'm a self-funded searcher and recently came across an industrial HVAC company that specializes in a niche end-market. Half of this company's revenue comes from the manufacture and installation of their own line of specialized high-capacity equipment, and the other half comes from maintenance and service. They service their own equipment as well as other brands, and they have a strong reputation as an HVAC solutions provider within this end-market. Margins on both manufacturing and install/service are strong and growth has been good. Another (small) part of their business is residential service - which they take on as their schedules allow - though it hasn't been a focus.

There's a lot of conversation around in the Search community around residential and commercial HVAC, though I'm finding less on industrial. Would love to chat with anyone who has experience in industrial. I know there are risks, but I also see unique opportunities within this niche that could lead to unusual upside!

Reply by a professional
from Oregon State University in Kuna, ID, USA

Hi ^redacted‌- BVR includes the industrial HVAC data in the plumbing, heating and air conditioning industry code###-###-#### You should be able to find some benchmarking and comps here: https://www.searchfunder.com/bvr/sector/582

Reply by a searcher
from University of California, Los Angeles in Tampa, FL, USA

There have been a LOT of regulatory changes in HVAC, so just be mindful if the company is manufacturing equipment that those regulations could have a significant impact on the business. For example, you should understand whether the equipment they were manufacturing was using a legacy refrigerant (like R-410A or other HFCs) that is being phased out. It can make certain equipment obsolete

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