We were recently contacted by Business Modification Group, an HVAC, and Plumbing business brokerage in Florida.
Unlike many industries, HVAC companies have not been taken over by huge conglomerates. This gives the small operator the ability to strike out on their own, and receive a larger paycheck in return for the risk-taking of starting their own company. Becuase this field requires a highly-skilled technician, there is a bit of a “moat” against new competitors entering the industry, providing owner-operated firms with a huge advantage.
However, the big payday is yet to come. When these owners decide to retire and sell their company, they are normally able to sell their business for a healthy multiple of the yearly profit. This means that a business with $100,000 in yearly revenue can sell for $300,000 or more. If the owner has paid off their house and business facility, they are able to sell the business building as well, and walk away with an enviable retirement and no monthly mortgage.
It is the American dream.
New HVAC owner-operators are always looking to buy an existing business. The Small Business Administration makes it easy to get loans for these fields if you have sufficient experience working as an HVAC technician. Acquiring an existing business provides an instant jump from “grunt employee” to “well-compensated business owner”.
One other category of buyer that is looking to buy these businesses is the retired investor. These investors are looking for an owner-absent situation where they own the business, give it a few hours of work a week, and trust their team to handle the day-to-day operations of the business. These businesses can be configured to work in this manner. In the best-case scenario, you will be buying from an owner or a business broker who is educated in how to establish the systems and processes that create a hands-free cash flow business.
Many of these small HVAC businesses are too busy to pay attention to their marketing. They rely on word-of-mouth to stay busy and this leads to erratic growth. By hiring an SEO company, they are able to have a steady stream of customers and never-ending growth.