Case 1 of 5
HVAC company, owner nearing retirement
Difficulty
A residential and light-commercial HVAC business in a metro suburb: $3.1M revenue, $1.4M SDE, asking 3.5x. The owner is 63 and personally handles all commercial bidding; the four techs handle residential service calls. One property-management client accounts for 38% of revenue and has been with the business nine years on a handshake, renewed annually each March. Residential work is roughly 60% maintenance contracts. The broker is running a competitive process with offers due in three weeks.
1. What is the single biggest risk to this deal? Why does that risk tie directly to the owner's own role in the business? And how would you address it in your offer?
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