How is HVAC doing lately?

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March 30, 2021

by a searcher from University of Texas at Austin in San Francisco, CA, USA

I’m curious how HVAC is doing now that we’re a year into (and hopefully nearly out of) the pandemic.

I know things ground to a halt in Q2 but how about since?

Are new install / change outs rebounding?

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commentor profile
Reply by a searcher
from Massachusetts Institute of Technology in Miami Beach, FL, USA
From an acquirer's perspective, I've seen lots of commercial install businesses available, some residential install HVAC , and few residential servicing businesses (don't remember if I've seen many commercial servicing ones). It seems to me that the hardest thing to do right now is find a $1MM+ cash flow residential servicing HVAC business for sale at a reasonable multiple. I'd guess a lot of those bigger ones are being targeted by small-time PE.

Even acquiring a sub-$500k cash flow residential servicing business isn't easy. So, if you're looking for residential servicing, it helps to be self-funded. I am seeing some stuff in the $200k-$300k cash flow range.
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Reply by a searcher
from Portland State University in Portland, OR, USA
Residential HVAC sector has been hot. Possibly over heated with everyone making improvements to their homes/residents supported by easy financing for new equipment driven by buyers wanting to enter the sector. Starting to see sales trend leveling off (normalizing from pent-up demand of 2020 stay-at-home orders). With continued re-openings, think the residential customer will begin to put their discretionary funds to other uses. However residential HVAC sellers are in the driver position for now asking and receiving high multiples...
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