HVAC service dealer - industry valuations?

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February 06, 2025

by a searcher in Atlanta, GA, USA

I am reviewing financial statements for a $3m and a $7M HVAC service business, both to potentially acquire. -- each are primarily residential focused and both have a small amount of reoccurring revenue through maintenance contracts.

EBITDA: 10%< for both.

Does anyone have have experience in what the multiples typically are for these size of business in HVAC?

Thanks,

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commentor profile
Reply by a lender
from University of Southern California in Los Angeles, CA, USA
HVAC is super hot as an industry right now. I am seeing 3.5x for the 300k EBITDA range and 4.5x-5x for the 700k EBITDA range if the deal is brokered. There is a lot of interest from LMM PE firms and a lot of interest from platforms. This also means there are a lot of buyers should you be able to grow the business and make it a platform. Amazing industry to enter and get a foothold into..

Would love to help you with your SBA loan. We work with all the major SBA lenders and work with lenders who LOVE residential HVAC. For the right deal, you can get Prime + 0.5% fixed. The bank pay us after your loan closes, so this is a 100% free service for you.

You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!
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Reply by a searcher
in Portland, OR, USA
If you're looking at residential HVAC businesses in the $3M–$7M revenue range with EBITDA under 10%, here’s what you can expect in terms of valuation multiples:

3×–5× EBITDA for smaller, owner-dependent businesses with minimal recurring revenue.

5×–6× EBITDA for solid, well-run companies with some maintenance contracts and steady growth.

6×–8×+ EBITDA for larger businesses with strong recurring revenue and professional operations.

Right now, mid-single-digit multiples (around 5×) are pretty standard in the market, with the biggest drivers being size, recurring revenue, and growth potential. If a business has a good foundation with maintenance contracts and isn’t overly reliant on the owner, you’ll see valuations push higher.
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