GRIFFINAdvisory Group
For owners

Selling an HVAC business

Most HVAC businesses that sell are priced on owner earnings: half of those sold from 2021 to 2025 went for 1.99 to 3.33 times seller's discretionary earnings. Larger companies are priced on EBITDA, where disclosed sector deals averaged 9.5x from 2024 through July 2026. 1,2

01

What do buyers pay?

Size decides which earnings figure a buyer prices. Smaller companies are priced on seller's discretionary earnings — profit plus the owner's own pay and perks. Larger ones are priced on EBITDA, after a market salary for management. The two multiples are not on the same scale and should never be compared directly.

Smaller companies, on owner earnings: HVAC businesses sold from 2021 to 2025 changed hands at a median of 2.58 times seller's discretionary earnings, and half sold between 1.99 and 3.33 times. The median sale price in 2025 was $800,000. 1

Larger companies, on EBITDA: HVAC services transactions with disclosed terms averaged 9.5 times EBITDA from 2024 through July 2026, down from 13.3 times in 2021 to 2023. Disclosed deals skew large, so treat this as a sector reference point, not a typical price. 2

Among private-equity buyers, smaller founder-owned add-ons have generally traded at three to eight times EBITDA, while high-quality platforms have drawn multiples in the mid-teens. 3

Size moves the multiple within the small end as well: the same data puts an HVAC business with more than $2.5 million of sales well over 3 times earnings, and one below $1 million at around 2 times. Why the first size step is the steepest 1

02

Who buys HVAC businesses?

Three kinds of buyer recur in HVAC acquisitions, and each prices a business differently.

Public mechanical contractors

Listed companies that add regional mechanical and HVAC contractors to enter a market or deepen service work with building owners.

  • Limbach Holdings — acquired Kent Island Mechanical, a mechanical contractor in Laurel, Maryland, in September 2024 4

Private-equity residential HVAC platforms

Sponsor-backed platforms that buy heating and cooling service companies region by region, usually keeping the local brand, the technicians and, for a transition period, the owner.

Private-equity commercial mechanical platforms

Sponsor-backed groups assembling commercial HVAC and mechanical service contractors that work for building owners and facility managers.

03

What moves the multiple?

Up

  • Service agreements and maintenance memberships. Revenue that renews every season is what platforms pay for; it smooths the weather and the replacement cycle.
  • Replacement and service work over new construction. A buyer values a homeowner or building owner who calls back more than a builder who rebids every job.
  • A technician bench, licenses and a sales process that do not run through the owner.
  • Scale. Each step up in size changes both the multiple and the kind of buyer that will look at the business. Who buys, and how it changes the price

Down

  • Dependence on a few builders or general contractors for most of the work.
  • The owner as the license holder, the lead salesperson and the person customers call.
  • High technician turnover, or a workforce a buyer would have to rebuild after closing.
04

What does it cost to sell?

The route sets the fee, and the size of the business mostly sets the route: a marketplace listing, a business broker on commission, or a retained M&A advisor. The ranges for each, with sources, are on what it costs to sell a business.

Griffin’s valuation report is a fixed fee of $20,000 to $50,000 or more, delivered in four to six weeks: the value range, the model that produced it, and the buyers who would pay it, before any decision to go to market.

Sources

  1. BizBuySell, “HVAC Business Valuation Multiples & Financial Benchmarks” (sold transactions 2021–2025). Accessed October 3, 2026.
  2. Capstone Partners, “HVAC Services M&A Update – July 2026”, 27 July 2026. Accessed October 3, 2026.
  3. Kroll, “M&A in the Residential HVAC Services Industry and What’s Driving Growth”, 4 November 2025. Accessed October 3, 2026.
  4. Limbach Holdings, “Limbach Holdings Acquires Kent Island Mechanical”, 3 September 2024. Accessed October 3, 2026.
  5. Seacoast Service Partners, “Seacoast Service Partners Acquires Quality First Air Conditioning”, 24 March 2025. Accessed October 3, 2026.
  6. White Wolf Capital Group, “Seacoast Service Partners Acquires Always Air Services”, 18 November 2025. Accessed October 3, 2026.
  7. Hidden Harbor Capital Partners, release on Air Conditioning Specialist’s acquisition of Clark Heating & Cooling, 30 September 2025. Accessed October 3, 2026.
  8. Del-Air, “Del-Air Joins Forces with Jacksonville-Based McGowan’s Heating & Air Conditioning”, PR Newswire, 2 April 2025. Accessed October 3, 2026.
  9. The Exigent Group, “Exigent Welcomes Superior Building Services to The Exigent Group”, 24 June 2026. Accessed October 3, 2026.