Metro NY HVAC Co - Commercial & Residential Service

$4.0M

Revenue

$731K

SDE

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

This is a 16-year-old HVAC company headquartered in Metro New York, serving commercial, residential, and private clients across all five boroughs. The business splits its work between scheduled service, installation, and emergency calls, with a notable concentration in healthcare facilities and commercial buildings. New work comes primarily through referrals and longstanding relationships with general contractors, which is exactly the kind of low-cost, high-trust pipeline you want in a contracting business.

The company generated roughly $3.99M in revenue and $730,910 in cash flow (SDE) on a trailing basis, a healthy 18 percent owner-earnings margin for a mechanical contractor. The first half of 2025 shows $1.44M in revenue and $571,662 in SDE, suggesting the back half of the year carries more volume or that 2025 is running ahead on margin. A book of annual preventative maintenance contracts provides recurring revenue and stickiness, which is the most valuable asset in any HVAC business because it converts one-time installs into a service annuity.

The seller positions this as an ideal bolt-on for a plumbing, mechanical, or construction company looking to add or strengthen an HVAC division. The team is lean at 9 employees, with about $225,000 in assets, equipment, and inventory included. Licensing transfer is the gating item, requiring contractor's license, EPA certification, OSHA site safety training, and refrigerant handling certification.

Why we like it

Earnings quality is strong with $730,910 of SDE on $3.99M revenue, an 18 percent owner-earnings margin that is solid for a NYC mechanical contractor where labor and overhead run high. The H1 2025 SDE of $571,662 on $1.44M revenue points to either an accelerating year or a margin step-up worth confirming.
The moat is the contractor relationships and the book of annual preventative maintenance contracts, which generate predictable recurring revenue and create switching friction. Combined with 16 years of reputation in a licensing-gated trade, this is durable demand that does not require a marketing budget to sustain.
HVAC in a dense five-borough market is structurally recession-resistant because heating and cooling are non-discretionary and the installed base is aging, so replacement and emergency service spend continues through downturns. Healthcare facility exposure adds a layer of essential, code-driven demand.
This is a textbook bolt-on for a plumbing, mechanical, or GC platform that already has back-office, fleet, and licensing infrastructure. A strategic buyer can absorb the $730k of cash flow with minimal incremental overhead and cross-sell HVAC into an existing client base.

How to improve it

Audit and expand the preventative maintenance contract book in the first 90 days, since recurring service revenue is the highest-multiple part of any HVAC business. Convert one-time install customers into annual PM agreements to grow the predictable base and lift exit value.
Implement a structured field-service software and dispatch system to track technician utilization, job margins, and emergency response times. Most owner-run HVAC shops leave 3 to 5 points of margin on the table through poor scheduling and untracked truck rolls.
Diversify lead generation beyond GC referrals by building a direct commercial sales motion targeting healthcare facilities, property managers, and building owners. Referral dependence is a concentration risk, and a proactive sales channel reduces reliance on a handful of contractor relationships.
Recruit and retain a strong field operations lead or general manager to replace the seller's project management role before close. The owner currently oversees project management and internal operations, so de-risking that dependency is essential to protect the cash flow.
Raise pricing on emergency and after-hours service calls, which command premium rates in NYC and are often underpriced by relationship-driven owners. Even a modest emergency rate increase flows almost entirely to the bottom line.
Add a financing option for residential and private-client installs to close larger replacement jobs faster and capture customers deferring big-ticket system upgrades. This is standard in modern HVAC sales and meaningfully lifts close rates.

Diligence notes

Reconcile the H1 2025 figures against the trailing full-year numbers, since $571,662 of SDE in six months implies a run rate well above the stated $730,910 annual. Confirm whether 2025 is genuinely accelerating or whether revenue and margin are seasonally concentrated.
Quantify the preventative maintenance contract book in dollars, count, renewal rates, and term, because this recurring revenue is the core of the valuation thesis. Verify the contracts are assignable to a new owner without renegotiation.
Assess customer and referral concentration, specifically what share of revenue flows through the top general contractor relationships and healthcare clients. Relationships tied to the retiring owner are a transfer risk that must be quantified before pricing the deal.
Map the full licensing and certification transfer path, including contractor's license, EPA, OSHA site safety, and refrigerant handling, since the deal cannot close without a qualified license holder. Confirm whether any key license is held personally by the departing owner.
Review the 9-person team's tenure, roles, and compensation, and identify whether any technicians hold the field expertise that the business depends on. Lean crews in skilled trades carry key-person risk that can disrupt operations post-close.
Verify the $225,000 in included assets, equipment, and inventory against an actual asset list and condition assessment. Confirm vehicles and equipment are owned free and clear and adequate for current job volume without near-term capex.

Source

Originally listed on BizBuySell. View original listing →