HVAC M&A Connections
August 03, 2023
by a searcher from Brigham Young University in Kahului, HI, USA
Interested in conversations around HVAC service company M&A. Assuming a focus on commercial (vs residential) and on service (vs new construction).
In a different industry, we expected SDE acquisition multiples around 3x on smaller businesses (<$750k), and expected to see multiples bump up to around 6x at $3M after growth/roll up.
In reality, we saw this multiple increase much closer to $1M due to PE competition.
Please DM me or feel free to post your experience or thoughts here.
in Boston, MA, USA
-Commercial vs Residential are very different skills and techs
- Commercial has a wide spectrum - are we talking commercial HVAC or mech contractor? Also a wide spectrum
- B2B vs B2C marketing strategies are very different. I think there is more appeal to the residential hvac space because the marketing is more easily streamlined and repeatable. the B2B space isnt as easy (and if people disagree, I'd love to hear you secrets!)
-Licensing in commercial tends to be more strict. I know in a lot of the Northeast Residential HVAC licensing requirements are pretty much nothing if you're staying away from gas installs and few other things but all in all very limited.) mech contractors tend to be more in-depth and in certain states to work on larger units you need licensing.