banker valuation, sales data

A popular comparable transaction in Florida is the HVAC industry.

Banker Valuation added 10 new comps for the HVAC industry in 2014, and over 15 over the last 3 years.  It appears the acquisition market for this industry is heating up again, so we thought we’d share some of our transaction data.

The HVAC industry is highly fragmented with residential service (29%) making up the largest segment of the market. Typically the higher the percentage of business associated with residential service work, the higher the value. If contracts with commercial accounts exist and can be proven, this helps increase the value as well.*

We see a number of HVAC transactions financed by SBA loans, but financing via seller notes is very common in this industry.  The transactions below can be found in Banker Valuation’s comparables database and are based on HVAC sales in Florida that have used SBA financing.

 

HVAC Companies in FL        Average                                                                                   

Transactions Found 11
Sales Price $876,091
Annual Gross Revenue $1,200,000
Seller’s Disc. Earnings (SDE) $312,843
EBITDA $246,345
SDE % of Revenue 20.08%
EBITDA % of Revenue 14.81%
Multiple of Revenue 0.54
Multiple of SDE 2.75
Multiple of EBITDA 3.84

 

While the above averages represent HVAC company sales in Florida, the chart below represents the industry transactions throughout the United States.

 

HVAC Companies in US        Average                                                                                  

Transactions Found 64
Sales Price $918,274
Annual Gross Revenue $2,261,281
Seller’s Disc. Earnings (SDE) $333,327
EBITDA $258,019
SDE % of Revenue 18.45%
EBITDA % of Revenue 13.67%
Multiple of Revenue 0.49
Multiple of SDE 2.76
Multiple of EBITDA 3.82

 

In summary, the comparable sales from HVAC companies in Florida are consistent with sales of HVAC companies’ across the country.

If you’d like more information about this industry or have questions regarding another industry, please feel free to contact Lori Mize at lmize@bankervaluation.com for more information or simply subscribe to Banker Valuation today!

*2015 Business Reference Guide, Business Brokerage Press