3–5x EBITDA Still Holding in HVAC & Plumbing? - Searchfunder

Member resources:

Member directory

Searchfund list

Company contacts

Industry reports

Transaction multiples

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher
in Tampa, FL, USA

1yr ago

3–5x EBITDA Still Holding in HVAC & Plumbing?

Banks seem to be funding Plumbing & HVAC deals at around 3–5x EBITDA — but is that still accurate in this environment? From my recent conversations: • DSCR targets land around 1.25–1.5x • Personal guarantees are still common, especially sub-$5M EV • Seller notes are often required to make the numbers work But here’s where I’m stuck: • Are banks still underwriting off LTM EBITDA, or shifting? • Are certain regions or buyer types getting more flexibility? Would love to hear from anyone actively lending or closing in this space — especially if the numbers are changing.

Share

1 Like

54 Views

Login to read all 3 comments

reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Generally speaking we are still seeing deals get done in this space. The largest concern continues to be licensing and being sure there is a clear path to have the proper licensing post-closing. Terms have not changed but the latest wrinkle is concerns over cost increases and how that might impact revenues due to tariffs. Lenders are really digging into potential tariff impacts. So it will somewhat depend on what you are doing. Service businesses if someone needs a new system they are going to pay the price. If you are doing construction they are going to want to understand how the contracts are structured and if there are escalators in those contracts for increases in materials. Most lenders are looking at the last three years of performance with the focus on the last two, YTD, and TTM. If you would like to discuss financing in more detail you can reach me here or directly at redacted

reply by a lender 1yr ago
from University of Southern California in Los Angeles, CA, USA

Hi ^redacted‌ - HVAC and plumbing are two of the most popular sectors for lenders over the last few years and the interest in these sectors is still extremely strong. From my recent conversations: • DSCR targets land around 1.25–1.5x - Agreed • Personal guarantees are still common, especially sub-$5M EV - Personal guarantees for SBA are mandatory for every borrower owning 20%+ • Seller notes are often required to make the numbers work - For most SBA deals, a seller unable or unwilling to provide a seller notes is increasingly looking like a redflag. Most deals have at least a 10% seller note. But here’s where I’m stuck: • Are banks still underwriting off LTM EBITDA, or shifting? - SBA lenders underwrite on the two most recent years of EBITDA with a focus on the most recent tax return. • Are certain regions or buyer types getting more flexibility? - I am seeing lenders give extremely attractive rates for borrowers buying businesses in the North East. Recently funded a HVAC business in the North East for primeredacted% but for very strong deals prime + 1% is doable. Are you trying to buy a HVAC business? I’d love to help you find the right SBA lender for this deal. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. Depending on the DSCR, I think this deal might qualify for pristine pricing (7.99% fixed). You can reach me here or directly at redacted You can also click here to schedule a meeting with me: redacted. Look forward to chatting!

More on Searchfunder