Selling an HVAC Services Business

Most HVAC businesses are priced based on the cash the owner can reliably pull out each year, then adjusted for how easy the business is to hand over. Membership retention, replacement gross margin after callbacks, and whether sales run without the owner can move the number quickly. You can get a fast estimate with Rejigg’s free valuation calculator, then sanity-check it against your mix of service, replacement, and commercial work.

No. Brokers charge 5–10% of the sale price for work an informed HVAC owner can do themselves with the right tools. Rejigg gives you buyer access, pre-vetted buyers, digital NDAs, a secure data room, and deal tracking so you can run a broker-free process without losing control. Start with the prepare-to-sell guide and build your buyer-ready package first.

Most HVAC sales land in the 3–6 month range from ’I’m ready’ to closing, but it varies by how clean the books are and whether licensing can transfer cleanly. The slow parts are usually buyer diligence, lender requests, and getting specific about the transition plan. Rejigg speeds this up by keeping everything in one secure data room and tracking offers, tasks, and timelines in one place.

Many HVAC acquisitions use an SBA 7(a) loan, where a bank funds most of the purchase price and the buyer brings a down payment. The bank will look hard at clean financial statements, proof that the profit is real, and whether the business can operate without the seller long-term. You can model monthly payments and down payment options with the SBA loan calculator before you negotiate.

Plan to share three years of profit and loss statements, balance sheets, tax returns, plus a current year-to-date report. HVAC buyers usually also want margins broken out by service, replacement, and commercial, and they will ask how you treat callback and warranty labor if you track it. Rejigg’s QuickBooks integration can pull a lot of this faster and help you build a buyer-ready data room without emailing spreadsheets.

Add-backs are owner expenses that shouldn’t reduce the buyer’s view of profit because they won’t continue after the sale, like personal vehicle costs, one-time legal fees, or a family cell phone plan. In HVAC, buyers also ask about unusual marketing spikes, big one-time tool purchases, and owner wages that will change if you replace yourself with a manager. Keep them simple and documented. Rejigg’s data room is a clean place to share the schedule and receipts.

Seller financing means you get part of the purchase price over time, usually as a monthly payment after closing. It shows up a lot in HVAC deals when a buyer wants to reduce cash down, when a seller wants a higher headline price, or when there are a few known risks the buyer wants time to prove out. On Rejigg, you can compare offers side-by-side, including cash at close, seller note amount, and repayment timelines.

An earnout is when part of the purchase price is paid later if the business hits agreed results, often revenue or profit targets. In HVAC, earnouts tend to come up when lead flow is hard to prove or when the owner is a major closer and the buyer wants a safety net. If you accept one, make sure the targets come from numbers you can see monthly in your real systems. Rejigg’s deal tracking helps keep those terms clear across buyers.

Working capital is the cash tied up in running the business day-to-day, like receivables, inventory, and payables. Buyers often expect the business to be delivered with a normal level of working capital so they’re not funding a shortfall that existed before the sale. HVAC seasonality can swing receivables and inventory, so the ’normal’ level depends on the month you close. Rejigg’s due diligence and closing guide walks through how to prep for that conversation.

Usually yes, because trucks and tools are part of delivering revenue. The buyer will still want a clear fleet list, who owns each vehicle, and what replacements are due soon, since that affects post-close cash needs. If you’re keeping any personally owned vehicles or pulling specific tools out, flag it early so there’s no surprise later. Rejigg’s data room makes it easy to share fleet schedules and title or loan documents securely.

It depends on your manufacturer and distributor agreements. Buyers will ask if dealer status carries over, whether rebate tiers reset with a change of ownership, and how warranty registration is handled today. They’ll also ask what changes if the license holder changes. Put your key vendor agreements and program requirements in one place so a serious buyer can review them early. Rejigg’s digital NDAs let you share these only after the buyer is vetted.

Yes, but plan the handoff early. Buyers will want to confirm who controls the phone numbers, tracking numbers, domain, Google Business Profile access, and who responds to reviews. If your last name is the brand, rebranding can work, but it usually needs a staged plan so call volume doesn’t drop during peak season. Rejigg helps by keeping what’s included in the sale documented and buyer questions handled in one organized thread.

Many HVAC deals include a 30–90 day transition where the seller introduces key vendors, confirms permitting workflows, and helps keep the team steady. If the seller is also the license qualifier, the transition can be longer to match state rules and inspection needs. Buyers respond well to a transition plan with a real calendar and responsibilities, not a vague ’call me if you need me.’ Use the transitioning guide to map it.

Most sales include a letter of intent, a purchase agreement, and closing documents that transfer assets or ownership. In HVAC, buyers often focus on assignment of phone numbers, websites, tracking numbers, software logins, maintenance agreement lists, and any lease or real estate paperwork. You’ll also typically see non-compete and non-solicitation terms so the buyer is protected. Rejigg keeps documents and deal steps organized so your attorney spends less time chasing missing items.

Non-competes are meant to stop the seller from opening a new HVAC company nearby and taking customers and technicians. They usually spell out the geography, the time period, and which services are restricted. What’s reasonable depends on how dense your market is and what your post-close role looks like. Get the basics agreed early so it doesn’t turn into a closing-week fight. Rejigg’s offer comparison view helps you weigh non-compete terms across buyers, not just price.

Confidentiality matters in HVAC because employees, vendor reps, and competitors often overlap. A clean process vets buyers before they contact you, gets an NDA signed before sensitive details are shared, and releases documents in stages. Rejigg handles this with pre-vetted buyers, digital NDAs, and a secure data room so you aren’t emailing financials, pricing, or customer information around.

Start by putting your proof in one place: revenue and margin by service line, an active membership report, callback and warranty logs, a fleet list, and licensing coverage by jurisdiction. Then decide what you want your role to be for the first 30–90 days after closing, especially if you’re tied to permitting or big relationships. Rejigg’s prepare-to-sell guide lays out the sequence, and you can book time at schedule a consultation to pressure-test your plan.

Look past headline price. Compare cash at close, seller financing amount and terms, any earnout, how working capital is handled, and the buyer’s timeline and transition expectations. HVAC offers also differ on licensing continuity and how the buyer plans to keep key techs and comfort advisors. Rejigg’s deal dashboard shows offers side-by-side so you can compare terms cleanly without building your own spreadsheet.