Your question: How do I sell my HVAC business?

How much can I sell my HVAC business for?

Well, Patrick says as a very broad rule of thumb – and I mean very broad – you can usually aim to get valued at 2 times the seller’s discretionary earnings up to around $500,000. In a well run HVAC business this is around 15% to 20% of Sales.

How much is a small HVAC company worth?

Depending on the size, cash flow, and revenue of the company, the average selling price for a small HVAC business is between 685,000 and 1,250,000.

What is valuing HVAC companies worth?

One widely respected reference source says that HVAC companies are worth somewhere in the range of 35 to 50 percent of annual revenue plus inventory stocked for resale at cost.

How much does the average HVAC business owner make?

While ZipRecruiter is seeing annual salaries as high as $99,500 and as low as $22,500, the majority of HVAC Owner salaries currently range between $39,000 (25th percentile) to $63,000 (75th percentile) with top earners (90th percentile) making $83,000 annually across the United States.

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How do I sell my business?

If you’re considering selling your small business, consider these seven steps to stay on the offensive.

  1. Determine the value of your company. …
  2. Clean up your small business financials. …
  3. Prepare your exit strategy in advance. …
  4. Boost your sales. …
  5. Find a business broker. …
  6. Pre-qualify your buyers. …
  7. Get business contracts in order.

Are HVAC businesses profitable?

Some one-man HVAC businesses take in only $50,000 in profit, while larger companies can earn several millions of dollars, all divided amongst the various employees. To save on costs, owners can find deals on equipment through buying used, looking for online deals, and trading.

What is the rule of thumb for valuing a business?

The most commonly used rule of thumb is simply a percentage of the annual sales, or better yet, the last 12 months of sales/revenues. … Another rule of thumb used in the Guide is a multiple of earnings. In small businesses, the multiple is used against what is termed Seller’s Discretionary Earnings (SDE).

What are seller’s discretionary earnings?

Seller’s Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. It is also referred to as Adjusted Cash Flow, Total Owner’s Benefit, Seller’s Discretionary Cash Flow, or Recast Earnings.

Where does HVAC make the most money?

Florida. Florida is considered the top state for HVAC technician jobs, with 33,210 positions filled as of May 2020. The average hourly wage in Florida for an HVAC tech was $21.85, and the average yearly salary was $45,450.

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How much does it cost to start your own HVAC business?

What is the startup cost for an HVAC business? Startup costs range from $3,000 to $12,000. They depend on the type of business, equipment needed, and the marketing you’ll do. You should also consider your ongoing operating costs, as you’ll need enough cash to cover at least the first few months of operation.

What is the average markup on HVAC equipment?

Typically we markup our equipment and materials for an installation job somewhere between 25 and 50 percent. When it comes to parts, the markup is even higher.