Residential HVAC Company
This acquisition opportunity involves a well-established residential HVAC installation, repair, and maintenance company based in a fast-growing suburban region in the southern U.S. The company has served its market for over 19 years and built a brand synonymous with high-end residential service, same-day responsiveness, and white-glove maintenance programs. The business specializes in air conditioning repair and replacement, furnace installs, heat pump systems, ductwork, and air quality (IAQ) solutions such as UV filters and humidifiers.
With a service radius of about 35 miles, the company operates five branded service vans, staffed by six field technicians, two install crews, and three office employees. Over the trailing twelve months, the business generated $4.65 million in total revenue with $910,000 in adjusted EBITDA, with approximately 27% of revenue tied to recurring “comfort club” memberships annual paid service plans for spring and fall tune-ups, priority scheduling, and discounted repairs.
This type of business with clean financials, strong recurring contract revenue, and deep brand equity is well-positioned for SBA 7(a) acquisition. However, HVAC businesses tend to experience seasonal revenue spikes and labor strain in peak periods. The buyer must structure the deal to mitigate weather dependency, retain lead techs, and capitalize on the membership base to smooth revenue and increase margin efficiency.
Proposed SBA 7(a) Deal Structure
Given the business’s earnings stability and service contract base, a straightforward SBA capital stack may look like:
Purchase Price: $3.55 million (3.9x EBITDA)
SBA Loan: $2,662,500 (75%)
Buyer Equity Injection: $355,000 (10%)
Seller Financing (Subordinated): $532,500 (15%), amortized over 5 years with 12 months interest-only
Protective terms for seller note:
20% principal clawback if annual memberships drop by more than 15% within 120 days
15% reduction if 2 or more lead techs depart during the first year
Performance-linked bonus to seller if revenue from memberships grows >25% in year one
The seller should also sign a 6–12 month consulting agreement to support seasonal staffing transition, vendor continuity, and ongoing tech training.
Technician and Crew Structure
The company employs:
4 senior service technicians
2 junior techs in ride-along apprenticeship program
2 install crews (crew chief + helper)
2 dispatchers
1 general manager overseeing scheduling and sales coordination
Technicians are paid hourly with additional bonuses tied to:
Average ticket size
Close rate on IAQ add-ons
Membership sales during service calls
Rework rates (bonus penalties for callbacks)
All techs are EPA 608 certified; 3 are NATE certified. The company invests in annual factory training and provides fully stocked vans. Tool budgets and uniforms are provided as part of a flat monthly kit fee.
Buyers should retain key staff with:
Six-month and 12-month stay bonuses ($5,000–$10,000 each)
Clear upgrade paths to install crew chief or service sales specialist
Incentivized training and cross-certification programs
Performance tracking with KPIs visible via weekly team dashboards
Membership Plan Review and Optimization
The business has approximately 1,425 active comfort club members, with annual fees ranging from $159 (basic) to $329 (premium).
Benefits include:
Spring and fall system checks
10–15% off repairs
Priority dispatch
Discounted diagnostic fees
Lifetime thermostat warranty (for premium members)
Memberships account for approximately $1.25M in top-line revenue. Churn is low (7–9% annually), and most customers are on auto-renew via ACH or credit card.
Post-close membership growth levers include:
Selling at point of service—currently underutilized by junior techs
Upselling from basic to premium tier with financing or IAQ add-ons
Bundling with duct cleaning or UV purification installs
Offering multi-system or landlord multi-property discounts
Buyers should review all membership documentation to ensure they meet state consumer auto-renewal laws and clarify cancellation and refund procedures.
Seasonality and Revenue Smoothing
Like most HVAC companies, revenue spikes in Q2 and Q3 due to AC demand, with Q1 and Q4 providing lighter volumes from heating and IAQ work.
Current revenue by quarter:
Q1: 17%
Q2: 32%
Q3: 31%
Q4: 20%
To smooth seasonality, the buyer should:
Promote duct cleaning and IAQ work in winter months
Launch gift card campaigns in Q4 for spring system tune-ups
Offer early replacement financing in Q1 with deferred payments
Pre-book spring tune-ups with membership discount incentives
Install backlog is highest May–August. Buyers must ensure install crew staffing is adequate for high-load months and maintain a rental fleet for overflow unit deployment.
Sales and Marketing Channels
Lead generation mix:
Google Local Services + PPC: 38%
Organic SEO: 21%
Membership referrals and existing customer base: 27%
Realtor and home warranty referrals: 8%
Direct mail and neighborhood flyers: 6%
Current monthly ad spend is $5,200. The company ranks in the top 3 for over 15 zip-specific “AC repair” and “HVAC install” keywords.
Marketing expansion tactics:
Email and SMS campaigns to lapsed members or aged customer list
Seasonal promotions with same-as-cash financing offers
Referral program tied to technician bonuses and customer rewards
HOA and property manager presentations with volume discount offers
Financial Summary
Revenue: $4.65M
COGS (labor, equipment, subcontractors): $2.12M
Gross Profit: $2.53M
SG&A: $1.62M
Adj. EBITDA: $910K (19.6%)
Revenue mix:
Installations (AC, heat pump, furnace): 58%
Service calls and repairs: 14%
Membership program: 27%
Ductwork and IAQ installs: 1%
High-margin add-ons include:
UV light installations (~70% gross margin)
High-SEER unit upgrades (~62%)
Annual service plans (~75%)
AR is minimal. 92% of invoices are paid within 10 days, with most clients paying on the spot or via card at dispatch.
Assets and Facilities
5 leased, branded vans (3–6 years old)
3,800 sq ft facility: office, showroom, and parts warehouse
$3,850/month NNN lease with 3 years remaining
Equipment: diagnostic tools, duct cameras, coil cleaning kits, recovery machines
Software: ServiceTitan (full suite), integrated QuickBooks Online
CapEx required: $35K–$50K in year one for van rotation, tool upgrades, and office refresh.
Legal, Insurance, and Licensing
Licensing is current for:
State mechanical/HVAC contractor license
EPA 608 for refrigerant handling (individual techs)
City business licenses in 4 jurisdictions
Insurance:
$2M general liability
$1M commercial auto
$1M workers comp
$1M umbrella
No open OSHA citations, wage claims, or customer legal disputes.
Buyers should confirm:
Tech licensing renewals for the next 12 months
Service agreement legality under state consumer protection statutes
All vendor contracts (distributor discounts, extended warranties)
Working Capital and Post-Close Needs
Payroll reserve: $80K–$100K
Membership service scheduling: $25K–$30K (staffing and materials)
Marketing ramp-up: $15K–$25K
Seller transition consulting: $20K–$30K
Equipment refresh: $25K–$40K
Ideal Buyer Profiles
Trade business operators in HVAC, plumbing, or electrical
Entrepreneurs with strong scheduling, dispatch, or people management skills
HVAC technicians looking to own their own company via SBA leverage
Home service aggregators or PE-backed roll-ups
Post-Close Execution Roadmap
Assign membership billing and CRM access
Meet top 100 recurring customers for service commitment continuity
Lock in senior techs and establish bonus schedule
Rebrand or refresh fleet and signage if rolling into platform
Launch outbound membership and seasonal pre-book campaigns
Conclusion
This HVAC company offers a strong mix of installation revenue, service and repair margin, and predictable membership-driven cash flow. It is an ideal SBA 7(a) acquisition for a buyer seeking immediate income, strong market presence, and a scalable foundation. With technician retention, membership optimization, and seasonal planning, a new owner can rapidly grow EBITDA and use this asset as a springboard to multi-market expansion or a multi-trade home services platform.
