How to Sell My HVAC Business: A Complete Guide
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How to Sell My HVAC Business: A Complete Guide
An HVAC business is more than just trucks and tools; it’s a vital service that customers rely on year after year. From long-term maintenance agreements to loyal homeowners who call every season, the foundation you’ve built holds real value in today’s market.
Whether you’re planning for retirement, looking to free up capital, or simply ready for a new chapter, selling your HVAC company can open the door to exciting opportunities. Buyers see strength in service contracts, skilled technicians, and the reputation you’ve worked hard to establish.
At Dealonomy, we specialize in helping HVAC owners turn that value into a smooth, successful sale. Our process is designed to showcase what makes your business unique and connect you with the right buyers—so you can move forward with confidence.
Understanding HVAC Market Trends
The HVAC industry will not be going away any time soon. However, even as a staple of the home building and maintenance sector, it’s projected to grow over the next 5 years.
Current HVAC Market Conditions
Industry revenue has grown at a CAGR of 2.5 % over the past five years, to reach an estimated $156.2bn in 2025.
While the growth and stability of this industry is strong, macroeconomic expansion is threatened by impending tariffs.
The HVAC market is strong and is always getting stronger. This is thanks, in part, to the necessary maintenance of HVAC systems that have to occur even after installation.
Industry Specific Trends
We already know that the HVAC industry is tried and true. It’s been around for a while, and it’s not going anywhere. However, that doesn’t mean the industry is stale. Contractors need to stay up to date on the trends that are shaping the industry.
Sustainability - Like many industries, the HVAC industry is experiencing a higher demand for sustainability
Connectivity - Building owners are beginning to expect high connectivity between all systems using a tablet or smartphone. Humidity, airflow, and temperatures can now be finely tuned and controlled from one system.
Streamline business practice with automations: Online project management tools and maintenance scheduling make business operations seamless.
Going ductless: New HVAC systems don’t require the complex ductwork of old. This technology is great for updating older buildings where installing ductwork is more difficult than it’s worth.
Buyer DemandBecause HVAC businesses are considered essential services, there is a fairly active marketplace. Those looking to buy an HVAC system include:
Industry players: HVAC businesses that are looking to expand their reach into a new region or add to their customer base. Electric, plumbing, and construction companies seeking to diversify their services.
Owner operators and entrepreneurs: Experienced HVAC technicians or managers wanting to start their own business. Entrepreneurs looking to purchase an HVAC company are likely looking for a way to secure a stable cash flow.
Corporate buyers & franchise: National home maintenance and construction brands often acquire smaller operations.
The buyer that is right for your business is dependent on your cash flow, technology, and the scale of your operation.
Typical Sale Multiples
Multiples are quick and easy ways to get an estimate of the value of your business. All you do is multiply your business’s revenue by the appropriate sales multiple. The hardest part is finding the correct multiple.
HVAC sales multiples are a bit more complex than other industries. That’s because the appropriate multiple is dependent on what companies you service, your specialization, and the Sellers Discretionary Earnings (SDE) range.
HVAC revenue multiples are between 0.4x and 0.6x. That gives an average multiple of 0.5x. That means your HVAC company could be valued at .5 times its yearly revenue.
Preparing Your HVAC Business for Sale
Before you start listing your HVAC company for sale, you need to get some things in order. If you jump into the sales process headfirst, you’re more likely to come across frustrating roadblocks.
When you take the time to gather important documents and get a proper valuation, you’re more likely to get the fullest value of your business.
Collect any Finance InformationPotential buyers are going to want to see documentation of your business's financial situation. You can get your valuation a bit later, but right now, just make sure you have everything you need.
Profit loss statements
Accounts receivable and payable
Tax returns
Balance sheets
Cash flow statements
These documents will help you find your business’s value, negotiate deals, and ensure a smooth handoff.
Double Check Certifications, Equipment, and Contracts
People who work in the HVAC industry are required to carry specific certifications. Make sure everyone who is working in your business is caught up on their certification. If not, this could lead to legal issues. Most sellers won’t want to purchase a business with gaps in their legality.
When someone buys your business, they also purchase your equipment. Make sure it’s in tip-top shape. If you conduct any repairs and maintenance that’s required on your equipment, you’ll be able to find a buyer more easily and get more value from your business.
Valuation Methods for HVAC Businesses
Valuation methods range in complexity. Some are good for larger businesses, and others are simple enough for smaller operations. Finding the right value of your business will give you negotiation power and help you find a good deal.
Market Valuation of HVAC Companies
When using the market valuing technique for your HVAC, you’ll be comparing your business to similar businesses that have sold recently. Industry multiples are used to find the market value of your business.
Market value is an easy way to get an idea of what your business is worth, but there’s a lot more to consider. HVAC companies especially have to consider all the assets they have. Trucks, tools, specialized equipment, employee retention, and customer contracts. All of these assets add to the value of your business.
EBITDA
Valuation techniques should provide a clear picture of the company’s profitability. Earnings before interest, taxes, depreciation (EBITDA) do just that by stripping expenses that may vary based on ownership, financing decisions, and accounting methods.
Asset-based
Asset-heavy businesses need to consider how these add to the value of their business. This approach is important for HVAC businesses as they often have specialized equipment.
Trucks, tools, and any other equipment should be included in this valuation.
Book Value Method: Calculate the net asset value by subtracting total liabilities from total assets.
Liquidation Value Method: Estimates the net cash that would be received if all assets were sold off and all liabilities were paid immediately.
Cost-Based Approach: Estimates the expenses necessary to recreate the business, focusing on the replacement cost of its tangible assets.
HVAC-Specific Valuations
HVAC businesses have special considerations that affect the value of your business. These will change the way you consider finding the value of your business.
Service Contract and Maintenance Agreement Valuation: Contracts for annual tune-ups and priority service help increase the value of HVAC businesses. Buyers often pay a premium if contracts have high renewal rates and long-term customers.
Workforce and Licensing Valuation: HVAC work requires specialized skills and certified workers. Replacing highly skilled workers is not just challenging, it’s expensive as well. Make sure you consider the value of your current staff.
Reputation and Goodwill: While it’s hard to put a monetary value on brand recognition and reputation, an HVAC company that is known for good services can sell faster and at a higher price than companies with a poor reputation.
Why Get a Professional Valuation for Your HVAC Business
Business valuation is such a challenging endeavor that many professionals make it their career. It’s important to get an accurate understanding of where your business stands before seeking a buyer.
When you receive professional valuation services, you’ll receive an unbiased valuation of your business that you can trust.
Negotiation Power: Valuing your own business doesn’t leave you with much negotiation power. Think of a professional valuation as a stamp of approval that proves the worth of your business beyond what you think.
Accuracy: Knowing what numbers to use where makes valuation a difficult task. Professionals know what they’re looking for.
Dealonomy’s platform provides a frictionless experience where sellers can receive an accurate valuation while selling to vetted and qualified buyers. Sell your business for 0% commission fee by using Dealonomy.
How to Market Your HVAC Business for SaleMarketing your HVAC business requires understanding your audience and using the proper channels to deliver punchy information about your business to potential buyers.
It’s a process that can feel arduous, but there’s an easy way to find qualified buyers without the headache.
Create Your Marketing Package
A marketing package houses everything you need for a successful marketing campaign, including:
Strategies
Channels
Audience personas
Marketing materials
Your marketing package should highlight what makes your HVAC business unique. Maybe you’ve been operating longer than any other business in your area, have a lot of recurring contracts, or have the best reviews on Google.
It’s the job of your marketing package to explain the benefits of buying your HVAC business.
Understand Your Target Audience
This marketing package should contain information on who your preferred buyer would be and details on how to reach them. If you’re hoping for a corporate acquisition, where would corporate buyers go to find listings?
Find the channels our audience is on and deliver your marketing package through those channels.
List Your Business on Dealonomy
Online marketplaces are the front line of business acquisitions. It’s where most buyers are going to look first. Dealonomy is a “good deals only” platform. Meaning it’s preferred by serious buyers.
When you list your business on Dealonomy, your listing gets sent to a list of highly vetted, qualified, and serious buyers. No marketing needed.
Navigating the HVAC Sales Process
Every business sale follows the same sales process. This process is formal and protects both buyer and seller from bad deals.
This is the sales timeline Dealonomy uses:
Preparation (1-2 Months)
Marketing the Business (3 Months)
Negotiation and Due Diligence (3 Months)
Closing and Transition (1-3 Months)
Preparation
The first phase of any successful business sale is preparation. During this step you’ll collect and organize any important documentation. Financial reports, operational documentation, and certifications are all necessary to prepare for selling your business.
When you sell your business using Dealonomy, you’ll get a free business valuation, and we’ll prepare your business for marketing.
Marketing the Business
During this period, your business will be marketed to potential buyers. The buyers on Dealonomy are vetted and highly qualified. Once your business is listed, we tell our premium buyers 10 days before releasing your listing to the broader network.
We work hard to market your business and find you the right buyer.
Negotiation and Due Diligence
Once you receive a letter of intent (LOI), your business moves into the negotiation and due diligence phase. You should never take any deal without first evaluating it. That’s what this phase is for.
LOIs are letters that specify a proposed price, payment structure, and the length of time of due diligence. Essentially, it communicates that someone wants to buy your business, how they’re going to pay for it, and how long they want both parties to consider the deal.
The due diligence phase is when a potential buyer does a deep dive into the specifics of the business. They’ll look at the finances, take a tour of any assets, and consider if they are comfortable with buying the business.
During this phase, our deal team will guide you through any facilitation and paperwork that needs to be filled out.
Closing and Transition
Congratulations, you have a buyer! Now it’s time to sign all the paperwork and have a smooth transfer of ownership.
A transition plan is paramount. Your Dealonomy deal team will help outline the plan and prepare the documentation. We’ll also help you proactively train and support the new owner.
HVAC businesses also have some important specifications. You have to be meticulous about this process. Customer contracts and recurring service agreements should be considered and transferred to the new business owner.
Challenges of Selling an HVAC Business
Every business acquisition has a few bumps in the road. The process will likely have many issues that come up here and there. However, there are ways to mitigate much of the challenge by planning ahead.
SeasonalityHVAC sales fluctuate heavily by season. Even though buyers should consider historical data, listing your HVAC business for sale during a slow season can affect the way sellers view your business.
Technician Retention
Loyalty is important to many HVAC technicians. Some buyers will be concerned that key staff will leave once they step in as owners.
You can provide reassurance for potential buyers by providing employee contracts and retention plans.
Owner Dependence
Many HVAC businesses are dependent on the business owner. It could be that the owner is in charge of much of the maintenance, or getting in and doing much of the work themselves.
If your HVAC business is dependent on you to do much of the work, then you’ll need to consider that the buyer best suited for you is likely corporate or a technician looking for more customers.
Sell Your HVAC Business for Free
Selling your business is a big step. You don’t want to get it wrong.
If you want the full value of your business, you’ll likely need professional help. The issue with traditional professional services is that they can be costly. Commission rates for selling a business exist between 5%-15% of your business's value.
There is another way to get professional help without paying the high price of traditional methods.
Dealonomy is a high-tech, high-tough business buying and selling platform that offers a 0% commission and a no success fee to all sellers. Find qualified buyers and get the full value of your business by listing your business for sale on Dealonomy.
List your business and get access to experienced advisors at no cost. Request a free business valuation, and let’s find you a buyer.
FAQs
How Long Does it Take to Sell an HVAC Business?
Most businesses sell within six to twelve months. However, the complexity and size of your business will affect that timeline. Most HVAC maintenance businesses for sale aren’t terribly complex, so you can expect the final sale to occur within that timeline.
How Do I Attract Serious Buyers for My HVAC Business?
To attract serious buyers, make sure your business is in order. Financials should be well organized, certifications current, and your price should be competitive.
Do I Need a Broker to Sell My HVAC Business?
Brokers make the selling process much easier for business owners, but they can be expensive. Get the benefit of having a broker without the need to pay the steep fees by listing your business with Dealonomy.
Should I Tell My Employees I’m Selling the Business?
Generally speaking, you should not tell employees that you’re selling your business until the sale is final. It can be frustrating for employees to hear that the business they work for will be sold without any concrete information. Wait until you know more about the transition plan to tell your employees,
Sell Your Gas Station With Dealonomy
Selling your business is easier when you utilize the frictionless platform of Dealonomy.
Traditional business brokers would ask for steep commissions and success fees based on the price of your business. Skip all of that and get the most out of your business by selling through Dealonomy.
Sellers get tremendous benefits when they sell their business on Dealonomy. This includes a 0% commission fee and a 90-day guarantee. If you don’t receive a serious LOI within 90 days, we pay you $10,000.
The selling process is more streamlined than ever, thanks to Dealonomy’s proprietary selling software. When you sell your business with us, your deal will be handled by a dedicated team of experts to guide you through the entire process.
Sell your business on the best business-selling platform.
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