Specialized Industrial HVAC-R Services Company
This article explores a full acquisition framework for a commercial and industrial HVAC-R (heating, ventilation, air conditioning, and refrigeration) services company that focuses on mission-critical facilities data centers, food processing plants, large office complexes, schools, and retail cold storage facilities. The company specializes in design-build services, preventative maintenance contracts, emergency repairs, and energy efficiency upgrades. It employs state-licensed HVAC-R technicians and operates from a 10,000 sq ft facility serving a tri-county area with additional service agreements in nearby industrial parks.
The company generates $6.8 million in annual revenue with $1.38 million in adjusted EBITDA. Roughly 69% of the company’s revenue is tied to ongoing maintenance agreements, with the remaining balance coming from equipment replacements, system design, tenant improvements, and urgent repair work. Its clients rely on guaranteed response times, licensing for high-tonnage systems, and cold chain compliance documentation that smaller HVAC operators can’t deliver.
This is an ideal SBA 7(a) target: the company has a robust margin profile, durable client contracts, skilled labor that can be retained, and a regulatory moat via licensing and commercial bonding. A buyer can grow this into a $20M+ business through technician recruitment, regional expansion, bundled building automation offerings, and accretive tuck-in acquisitions of smaller service firms.
Proposed SBA 7(a) Deal Structure
Given its profitability and existing contract base, this company supports a traditional SBA 7(a) acquisition model:
Purchase Price: $5.52 million (4.0x EBITDA)
SBA Loan: $4.14 million (75%)
Buyer Equity Injection: $552,000 (10%)
Seller Financing (Subordinated): $828,000 (15%) amortized over 6 years with 12-month interest-only period
Key protections and incentives:
20% clawback provision on the seller note if over 15% of recurring clients cancel within the first 6 months
Seller earns $100K bonus if buyer adds $1M in net new recurring maintenance revenue in the first 18 months
Seller to remain as technical director and license holder (where applicable) for up to 12 months post-close
Customer Segmentation and Revenue Mix
Customer profile:
Industrial facilities (food processors, manufacturing plants): 28%
Data centers and tech firms: 18%
Office campuses and business parks: 16%
Retail and grocery chains: 14%
School districts and universities: 12%
Hospitality and entertainment venues: 8%
Municipal accounts and government buildings: 4%
Revenue streams:
Recurring maintenance contracts (quarterly/monthly): $4.69M
Equipment replacement and installation (RTUs, chillers, freezers): $960K
Emergency service and urgent repair: $550K
Energy audits and system rebalancing: $410K
Controls and building automation systems (BAS): $180K
Clients sign 2–5 year contracts with built-in SLAs, seasonal PM schedules, and emergency response windows of 2–8 hours. Most also receive annual efficiency audits and control reprogramming support.
The company maintains 71 active contracts. Top 20 clients account for 59% of revenue. The largest client represents just 7.2% of overall income.
Technician Workforce and Service Infrastructure
Staffing:
8 licensed HVAC-R technicians (EPA-certified, NATE, OSHA 30)
2 refrigeration specialists
2 controls technicians (BAS integration experts)
3 apprentices (internal training path)
2 project managers
1 service dispatcher
1 head estimator
All technicians are trained to service high-tonnage rooftop units (RTUs), walk-in freezers, chillers, and energy management systems. Apprentices rotate through refrigeration, commercial HVAC, and controls during their training period. Many have factory training certifications (Trane, Carrier, Lennox, Daikin).
Post-close retention plan:
Year-one retention bonus pool: $85K allocated by tenure and certification level
Structured pay progression tied to certifications and project leadership
Licensing reimbursement and paid continuing education for upskilling
Fleet, Tools, and Facility
Fleet:
9 fully equipped service vans (2018–2022 models)
1 flatbed equipment transport truck
2 estimator/project manager SUVs
FMV: ~$650K (owned and well-maintained)
Facility:
10,000 sq ft headquarters with:
Dispatch and controls room
Inventory storage (compressors, valves, fittings, BAS panels)
Training mezzanine with mockup RTU and chiller system
Offices for engineering and customer service
CapEx outlook:
Replace 2 vans over 24 months: $80K
Upgrade CRM and digital invoicing system: $12K
Add refrigerant tracking and EPA logging system: $8K
Optional: Install test bench for apprentice training program: $25K
Sales and Marketing Operations
Sales acquisition channels:
Long-standing RFP relationships with local school districts and commercial REITs
Referrals from property managers and general contractors
SEO optimization for “emergency HVAC” and “data center cooling + [city]”
Occasional bid board submissions for municipal work
No dedicated outbound sales team
Marketing spend: ~$3,600/month
Growth strategy:
Hire an enterprise account manager to pursue national retail and data center chains
Bundle energy monitoring with BAS for Tier 1 clients
Launch a “Refrigeration-as-a-Service” program for foodservice and grocery
Acquire nearby HVAC shops and integrate their field techs into existing routes
Add 24/7 on-call service window to secure higher-margin urgent contract tier
Financial Summary
Revenue: $6.8M
COGS (labor, parts, refrigerant, transport): $3.4M
Gross Profit: $3.4M
SG&A: $2.02M
Adjusted EBITDA: $1.38M (20.3%)
Service line margins:
Preventative maintenance: 55–60%
Equipment installation: 40–50%
Emergency repairs: 70–75%
Controls and energy audits: 60–65%
AR aging is well-managed. Most clients are on net-30 with larger accounts paying via ACH. The company invoices monthly or on milestone completion.
Legal, Compliance, and Insurance
All technicians hold valid EPA 608 certifications
Licensed mechanical contractor in 3 states
OSHA 30 compliance across all field leads
Refrigerant logs updated quarterly; leak tracking in place
Fully insured: $2M GL, $1M auto, $1M workers comp, $1M umbrella
No open claims, employment disputes, or environmental violations. The company has a zero-lost-time injury record in the past 3 years.
Working Capital and Transition Budget
Payroll float: $135K–$150K
Technician retention and bonus pool: $85K
CRM and refrigerant tracking systems: $20K
CapEx for fleet and training tools: $90K–$110K
Seller consulting and license compliance: $45K
Ideal Buyer Profiles
HVAC-R licensed professionals seeking turnkey route-based business
Engineering firms or contractors expanding into commercial HVAC
PE-backed firms targeting compliance-driven, skilled labor verticals
Trade services roll-ups with exposure to mission-critical facilities
Post-Close Execution Plan
Confirm license continuity and client communication with top 30 accounts
Recruit 2 additional apprentices and 1 controls specialist
Initiate digital tracking of refrigerant usage and automate client reports
Redesign technician routes for fuel savings and dispatch optimization
Begin acquisition targeting 3 small HVAC-R shops with <5 techs for absorption
Conclusion
This commercial and industrial HVAC-R services company offers a high-margin, compliance-driven service line with trained technicians, long-term contracts, and physical infrastructure. It is particularly well-positioned for SBA 7(a) acquisition due to its consistent earnings, skilled labor force, and durable customer base. Buyers seeking to enter or expand in regulated mechanical services can use this as a foundational platform with defensible income, technician retention, and capital-light growth opportunities. Its specialization in refrigeration and building controls adds further value and resilience in an energy and compliance-sensitive economy.
