Perspective on Plumbing & HVAC multiples?

by a searcher from Duke University - The Fuqua School of Business

4 months ago

Greetings All,

Currently doing diligence on Plumbing & HVAC company doing $4M revenue, $800K SDE, with 60% of revenue from new construction.

Interested to get perspectives on current multiples being paid in the plumbing and HVAC space, and if multiples are getting a haircut due to current interest rates.

Wondering if a company that might have sold for 4.5 a couple years ago is getting pushed down a few points due to interest rate environment. 

Thanks for your perspectives.  --John

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searcher from Biola University

Preparing an LOI on a $400K SDE plumbing biz shortly. Thinking 2.75X w/ 5% seller note or 3.25X w/ 5% note + another 5% (2-yr forgivable). Thought is to see if they bite to judge if they believe in the business or just looking to bail.

Any other ideas how to structure offer?

4 months ago | like reply | 0 likes

searcher from University of Utah

I’m in this space and range. I’d say 3.5-4x is what I’m seeing in the $700k plus sub 1.5mm SDE

2 HVAC companies I offered on listed at a 4x they were $500-700k SDE

i just saw a roofing company $1.5m SDE go for 4.2x I offered at a 3.9x

4 months ago | like reply | 0 likes

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