Does anyone have experience with HVAC and/ or refrigeration businesses?

January 15, 2019

by a searcher from Dartmouth College in Allentown, PA, USA

I'm in diligence of an attractive B2B HVAC and Refrigeration company (B2B; not cyclical; maintenance contracts); however, I'm concerned that I do not have an engineering or technical background. Does anyone have experience buying and operating a company where they would be 100% reliant on their workforce to deliver technical service to clients?

Additionally, recruiting a blue collar, skilled workforce is challenging. I'm interested to hear about anyone's experience recruiting such talent.

Thank you in advance for any thoughts

Reply by an investor
from University of California, Berkeley in Moorestown, NJ 08057, USA

In most states HVAC is a licensed trade that requires a number of years of apprenticeship before you get a license. Does the current owner hold the license? If so, what are you going to do when he leaves? I would place that concern above any other when looking at this company. You will have to hire someone licensed and keep them on staff, and if they leave you for someone else, hire a replacement before they leave. You cannot operate for even one day without a trade license.

Reply by a searcher
from INSEAD in Liège, Belgium

Hi, I bought an HVAC business, and executed a buy & build-up strategy. The group has been sold to a major Energy company. You definitely need a partner who knows the business and how to manage the blue collar workforce, if you're not used to it.

+3 more replies.

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