Mar 30 ā¢ General discussion
š§µ Found a solid small business for sale in the HVAC & plumbing space.
Not sexy. But strong cash flow and real demand.
Hereās what I see:
HVAC / plumbing is one of those industriesā¦ People donāt āwantā it. They NEED it.
When systems break ā they pay fast.
Thatās why these businesses work.
But hereās the interesting partā¦
This one is very āold schoolā.
Almost no marketing.
No real systems.
Just reputation and referrals.
That tells me something important:
The demand is already there.
Itās just not scaled yet.
Now letās look at numbers:
ā¢ ~$1.57M revenue
ā¢ ~$430K SDE (3-year avg)
ā¢ Asking ~$1.5M
So around ~3.4x earnings.
Not a steal. But fair for this type.
Now hereās what caught my attentionā¦
Revenue mix:
ā¢ 60% new construction
ā¢ 20% remodel
ā¢ 10% service
This is where the opportunity is.
Construction is goodā¦ until itās not. Cyclical. Depends on market.
Service is the gold:
Recurring Higher margin More stable
And here itās only 10%.
So big upside just by shifting focus.
Another thing:
Team is small and stable.
Low turnover.
Skilled people.
In this industry, thatās HUGE.
Because good technicians are hard to find.
But there is one challengeā¦
Owner is still doing a lot:
Sales Estimating Scheduling Managing jobs
So this is not passive.
You need operator or replace him.
Now think about this:
No website (or very basic) No ads No funnels
Everything comes from word of mouth.
Sounds goodā¦ but also risky.
No system = no control over growth.
So why hasnāt someone bigger rolled this up?
Because businesses like this are fragmented. Local. Relationship-driven.
They need someone to bring systems + scale.
Hereās how I would approach:
Step 1: Buy business like this (or few of them)
Step 2: Build marketing engine (Google, local SEO)
Step 3: Push service contracts + maintenance plans
Step 4: Add CRM + scheduling systems
Now you have:
Recurring revenue Predictable pipeline Higher valuation
Thatās how you turn 3ā4x business into 5ā7x.
Also growth angles:
ā¢ Fire mitigation services
ā¢ Property managers contracts
ā¢ Long-term maintenance deals
Simple moves.
Big impact.
My view:
This is a strong base business.
Real cash flow.
Real demand.
But not optimized.
Thatās where buyer makes money.
Main risks:
ā¢ Owner dependence
ā¢ Heavy construction exposure
ā¢ No systems
But all fixable.
If you know how to operate ā this is interesting.
Comment āHVACā and Iāll share more deals like this.
2
2 comments
š§µ Found a solid small business for sale in the HVAC & plumbing space.
powered by
skool.com/the-acquisitionscom-community-2795
Learn how to make š° from business acquisitions
Suggested communities
Powered by