Multiples for Small Canadian HVAC

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April 14, 2023

by a searcher from McGill University in Toronto, ON, Canada

Hi - does anyone have recent knowledge of multiples for small HVAC installation/service businesses in Canada? Looking at 2 potential deals. Once has about $100k EBITDA (90% install revenue/10% service revenue) and the other about $500k EBITDA (50% install revenue/50% service revenue). I'd also be curious about what people are seeing recently at higher EBITDA levels. Thanks for the help!

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Reply by a searcher
from University of Alberta in Calgary, AB, Canada
The $100K business is likely to small to attract anything more than a 3x multiple. The buyer is basically buying a job -- I wouldn't be surprised if the owner is doing the install/service work themselves. The $500K business is a decent size. 3-4.5x would be my expectation. Where it falls in that range would depend on the usual things like level of customer concentration, consistency of financial performance over last few years, and geographic location (to name a few).
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Reply by a searcher
in Ladysmith, BC, Canada
Talking to Banks and other brokers should provide some ideas.
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