HVAC Business Valuation
HVAC Business Valuation Calculator & Exit Planning Built for Contractors
We built one platform that tracks your HVAC business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most HVAC Owners Have No Idea What Their Business is Actually Worth
Current HVAC Valuation Multiples (2026)
HVAC is one of the hottest sectors in home services M&A. PE money is pouring in. Here's what companies are selling for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives HVAC Business Value
Revenue gets you in the door. Earnings get you an offer. But these six factors determine whether you get a 2.5x multiple or a 5x multiple:
Service Agreements
35%+ Recurring
Maintenance contracts are gold to HVAC buyers. Predictable, high-margin, renewable revenue that doesn't depend on weather or luck.
Install-only = commodity pricing
Tech Team
5+ Certified Techs
EPA-certified technicians who stick around signal a healthy culture. High turnover tells buyers they're inheriting a staffing nightmare.
Owner as only tech = deal killer
Revenue Mix
Balanced Service + Install
Pure installation is seasonal and project-dependent. A 50/50 mix of service and install smooths cash flow and provides upsell opportunities.
100% install = feast or famine
Commercial Base
40%+ Commercial
Commercial HVAC contracts are larger, longer-term, and more predictable. They show you can handle complex jobs and maintain relationships.
Residential-only = limited ceiling
Owner Transition
Sales & Management
If you're still doing installs or running emergency calls, your business depends entirely on you. Buyers pay less for owner-dependent operations.
Owner in the field = owner gets a wage
Brand & Reviews
4.5+ Stars, 200+ Reviews
Strong online reputation and recognizable local branding signal market position. Buyers want turnkey operations they can scale.
No online presence = invisible company
How to Value an HVAC Business
The U.S. HVAC industry includes over 120,000 contractors generating approximately $130 billion in annual revenue. HVAC businesses have become one of the most sought-after acquisition targets in the trades due to their mix of installation revenue and recurring service income.
Seller's Discretionary Earnings (SDE) is the standard method for HVAC companies. HVAC businesses typically sell for 2.0x to 4.5x SDE, with companies at the higher end demonstrating a strong service agreement base, low owner dependence, and a deep bench of licensed technicians. Larger HVAC companies with $3M+ in revenue attract EBITDA-based valuations, typically 4.0x to 8.0x.
Revenue multiples for HVAC businesses generally range from 0.30x to 0.60x annual revenue. Service-heavy businesses with maintenance agreement revenue consistently command premiums over installation-focused companies.
The unique valuation driver for HVAC companies is the maintenance agreement base and technician workforce. Recurring service agreements — where customers pay monthly or annually for preventive maintenance — create predictable revenue that buyers view as the most bankable portion of the business. A company with 2,000+ maintenance agreements produces cash flow that is nearly as predictable as a subscription business. Licensed HVAC technicians are extremely scarce, so a company with a stable, trained workforce holds strategic value beyond its financial metrics.
HVAC has been the hottest sector for private equity roll-ups in the trades industry. Companies like Apex Service Partners, Wrench Group, and regional platforms are acquiring HVAC businesses at premium multiples, driving up valuations across the industry. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do HVAC businesses sell for?
Strong HVAC companies sell for 2.5x – 4.5x SDE, with top performers exceeding 5x. Revenue multiples range from 0.5x – 1.0x. The spread is huge because recurring revenue and owner dependence matter so much to buyers.
Why are PE firms paying so much for HVAC companies?
HVAC checks every box PE loves: essential service (everyone needs heating and cooling), recurring revenue potential through service agreements, fragmented market for consolidation, and skilled labor that creates barriers to entry.
How much do service agreements affect my HVAC valuation?
Dramatically. An HVAC company with 40%+ recurring revenue might sell for 4x+ SDE. The same company with 10% recurring might get 2.5x. On a $600K SDE business, that's a $900K difference in sale price.
Should I focus on residential or commercial HVAC before selling?
Both, ideally. Buyers want diversification. But if you're heavily residential, adding commercial contracts (40%+ of revenue) will significantly increase your multiple. Commercial shows you can handle complexity and maintain long-term relationships.
What if I'm still the one doing estimates and installs?
This limits your value significantly. Buyers see owner-dependent businesses as risky—what happens when you leave? Start delegating now. Train a team member on estimates, hire an operations manager. Give yourself 12-24 months to transition.
When is the best time to sell an HVAC business?
When your service agreements are strong, your team is stable, and you've got 2-3 years of clean financials showing growth. Seasonally, buyers like to close before summer or winter peaks. PE money is flowing now—don't wait for the market to cool.