Lessons from Analyzing 10+ HVAC Businesses (and Acquiring 1)

Hey there entrepreneurs,

Welcome to the Better Business Brief, where I share takeaways from:

running businesses I’m building to sell for millions
My advisory with other business owners building to sell for millions
tips and tricks you can use to do the same

I've personally reviewed 10+ HVAC companies for acquisition over the last year and co-own one now. It’s a great industry… but most of these businesses are built in a way that makes them REALLY hard to buy.

So today, in less than 5 minutes, I’ll give you:

💡 3 Things Most HVAC Sellers Don’t Think About

🚧 Why They Make Buying So Hard

🛠️ What You Can Do Instead

If you’re thinking about buying a small business in the trades (which I do recommend because they’re great businesses), or selling one, you need to know this stuff…

ISSUE #1

The Business IS the Owner.

A lot of these HVAC businesses run lean. Like really lean. One owner. One van. One or two helpers. That’s it.

Usually, the owner does the sales, the scheduling, the customer service, and the field management. Their spouse might be doing bookkeeping, answering phones, and dispatching - all not by traditional salary. They just do whatever it takes and take profits from the business.

The problem? If they leave, you're not buying a business... you're buying a chaotic job that you’re probably WILDLY unqualified for. You’ll need to hire 2–5 people just to keep the lights on.

What to do instead: Only buy if you're ready to take on the work or you’re prepared to invest in people fast. Better yet, look for sellers who are open to staying on during a transition period. Or look for a business that’s a little bigger or built a little more intentially to not rely so much on the owner and their many talents and extreme capacity for workload.

ISSUE #2

Great on Paper, Bad in Practice

I’ve seen a lot of HVAC listings that look “perfect.” Strong cash flow, priced at 1–2X earnings, clean books, solid mix of commercial and residential work.

But when you dig in?

The “employees” are subcontractors. The “website” was made last week. There’s no CRM. One van. No systems. No contracts. No real lead funnel.

So even if it pencils out on a spreadsheet, you’re inheriting a business that was never built to be sold or to change hands. It was just built to feed the family. And that’s not a knock. I respect the hell out of the owners who built these to make a great life for themselves and their families. It just means you’ll have to rebuild a lot if you step into ownership.

What to do instead: Read between the lines. Ask, “What am I actually buying?” Sometimes it’s just a phone that rings and a list of customers. That’s fine - but only if the price and the terms reflect that.

ISSUE #3

The Cash Flow Timing Kills You

Most HVAC businesses do both commercial and residential work. But the split matters more than you’d think.

Why? Cash timing.

Residential = quick pay.
Commercial = delayed pay (often 30–60 days out).

I’ve seen businesses that are 80% or more commercial struggle because they front all the labor costs, have a seasonal slowdown, and then still have to make overhead payments. Imagine buying one and you also have some kind of financing payments every month and need to cover new hires and try to reinvest and grow the business. Tough spot to be in.

Even if you’re profitable on paper, that delay can crush your cash flow and make it impossible to make ends meet.

What to do instead: Prioritize businesses with a strong residential base, or be sure to model out when you get paid, not just how much AND have a plan for when things get tight. You’ll want to stack cash in an emergency fund and have potential low interest line of credit options at the ready if you want to tackle the profitable but slow-moving world of commercial work.

Final Thoughts:

HVAC is one of the best industries to be in. Demand is constant. Margins are strong. Upsells are plenty.

But most of these businesses were never designed to be sold.
So if you want to buy one, you have to be choosy.

Look at who runs it. How they get paid. How it’s structured.
Because that business that looks like a “deal” might end up owning you or even ruining you.

If you’re in the market for a business like this, or already own one, shoot me a message or reply to this. Always happy to look over a deal or help make it more sellable.

And if you found this helpful, send it to a friend thinking about HVAC or blue-collar acquisitions. They’ll thank you later when they avoid making a mistake.

You can catch the full conversation more in depth where we analyzed an actual HVAC busness listed for sale on my live show here.

If you like these ideas or found this informative, stick around and subscribe. I do this newsletter every week.

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Happy value-building to you!

See you next time for Better Business Brief,

-Brody