Scaling HVAC/heater service companies

by a searcher from University of Pennsylvania - The Wharton School

5 months ago

Searchfunder community: I have been performing DD on a variety of HVAC assets in the $1-3mm EBITDA range. They generate attractive cashflow but the growth profile is highly variable. Outside of growth via 

a) demand that is 'pulled' due to the current set of customers growing or entering new sites, 
b) growth from cross selling products to the existing set of customers
c) increased penetration of parts and service

What initiatives/steps should one be thinking of taking to accelerate new logo growth given the sticky nature of the business with both individual customers and businesses? Do you assume you can win new logos during the process of underwriting? Would love to speak with someone deep in the weeds on this if possible

How does spend on new business development translate into earnings: Is the nature of this revenue growth lumpy? i.e., after X years of business development, you start to win new contracts?

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admin from Massachusetts Institute of Technology - MIT Sloan School of Management

^Searchfunder member‌ have previously commented on HVAC and might be able to share their insights on scaling them with you here.

4 months ago | like reply | 0 likes

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