HVAC Business Valuation Guide

Understanding what drives value in HVAC companies and how to maximize your multiple when it is time to sell.

Current HVAC EBITDA Multiples

Residential
5x - 7x

EBITDA Multiple

Commercial
6x - 8x

EBITDA Multiple

Diversified
7x - 10x

EBITDA Multiple

These multiples reflect current M&A market conditions as of January 2026. Actual valuations depend on many factors including revenue quality, geographic market, and operational efficiency.

6 Key Value Drivers for HVAC Businesses

Service Agreement Revenue

Recurring maintenance contracts are the most valuable revenue stream. Companies with 30%+ service agreement penetration command premium multiples.

Technician Retention

Low turnover and experienced technicians reduce transition risk. Average tenure of 5+ years signals operational stability to buyers.

Commercial Mix

Commercial contracts provide larger ticket sizes and longer relationships. A balanced residential/commercial mix reduces market concentration risk.

Fleet & Equipment

Well-maintained vehicles and modern equipment reduce capital expenditure requirements for buyers and signal professional operations.

Technology Stack

Modern field service software (ServiceTitan, Housecall Pro) demonstrates operational sophistication and provides clean data for due diligence.

Owner Independence

Businesses that can operate without daily owner involvement are more attractive. Strong management teams enable smoother transitions.

Find Out What Your HVAC Business Is Worth

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