What buyers pay for in an HVAC or plumbing company

Two HVAC companies with the same profit can sell for very different prices. Published 2026 data puts HVAC companies anywhere from about 3x to 10x EBITDA, and plumbing from about 2.4x to 6.5x (CT Acquisitions). Here's what decides where yours lands.

1. Revenue that repeats

Maintenance agreements, service memberships and inspection contracts tell a buyer next year's revenue is already partly booked. Service and replacement work is valued above new-construction bids, which depend on a few builders and the housing cycle (Salt Creek Advisory, citing PKF Investment Banking).

2. A team that doesn't depend on you

If customers call your cell phone and the master license is in your name, a buyer is buying a job, not a company. A general manager, a service manager and documented processes change that. Capstone Partners calls qualified labor "a primary growth constraint" for buyers, so a stable technician bench is worth real money.

3. Size

Every dataset shows multiples rising with size. Sub-$1M EBITDA HVAC operators cluster around 3x to 4.5x, while $2M+ companies with service-agreement density and several locations regularly clear 7x to 10x in competitive processes (CT Acquisitions).

4. Clean numbers

Buyers start from your tax returns. If your adjusted earnings can't be tied back to them line by line, expect the price to be renegotiated during diligence. Getting this right a year before a sale is cheap; getting it wrong during one is not. The Free Earnings Check is built for exactly this.

5. More than one buyer at the table

The same company sells for more when several buyers compete under a deadline. Unsolicited offers are usually the opening bid of one buyer, made before anyone else has looked.

What to do with this

Pick the one item above that's weakest in your company and start there. The Exit Readiness Score will tell you which one it is.

General information, not legal, tax or investment advice.