Absentee-Run HVAC Company, San Diego County

$3.4M

Revenue

$873K

SDE

2.5x

Multiple

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Full Editorial Writeup

This is an established HVAC contractor serving residential and commercial customers across San Diego County. Founded in 2018, it runs on an absentee-owner model: the owner lives out of state while a general manager leads an 11-person team spanning sales, service, installation, customer service, and marketing. The company operates a fleet of seven service and installation vehicles plus the usual HVAC field equipment, tools, and inventory, out of a modest 900 square foot leased space.

The numbers are the headline. On roughly $3.38M in revenue the business reports $873K in adjusted EBITDA, a 26% margin, and it is priced at $2.2M, or about 2.5x EBITDA. That is a healthy margin for a trades business of this size and a reasonable multiple for a buyer who can verify the earnings hold up without heavy owner involvement.

HVAC in Southern California is a durable, needs-based category: climate control, repairs, and replacements get bought in good times and bad. The weakness in this specific operation is revenue mix. Installation and one-time service work dominate, and recurring maintenance agreements are flagged as a growth lever rather than a current strength, which means each sale largely has to be re-won. That is the gap a sharp operator can close post-close.

Why we like it

Earnings quality is strong on paper: $873K EBITDA on $3.38M revenue is a 26% margin, well above typical trades operators, at a 2.52x multiple. If the add-backs are clean and the margin is real, this is an attractive entry price for an essential-services business.
HVAC is about as durable as home services gets, especially in a market with hot summers and aging housing stock. Heating and cooling failures are non-deferrable: customers pay to fix them in any economy, which protects revenue through downturns.
The business already runs without the owner, with a seated general manager and an 11-person team covering sales through install. For a buyer who wants cash flow without relocating or swinging a wrench, the management layer is already proven and in place.
The listing openly names the biggest value-creation lever: recurring maintenance agreements are underdeveloped. A buyer inheriting a service and install base can convert customers onto annual plans, adding sticky, high-margin revenue the current owner has not harvested.

How to improve it

Launch a structured maintenance agreement program in the first 90 days, targeting every past install and service customer with a two-visit annual plan. Recurring contracts smooth seasonality, lift lifetime value, and would materially raise the exit multiple versus a pure break-fix shop.
Audit and tighten pricing on service calls and installs. Trades businesses this size routinely leave 3 to 5 points of margin on the table through inconsistent quoting and discounting, and a simple price book with minimum ticket thresholds captures it fast.
Install a CRM and dispatch system if one is not already running, tracking lead source, close rate, average ticket, and technician utilization. You cannot absentee-manage what you cannot measure, and the data will surface the real growth and leakage points.
Build out the commercial side deliberately. Commercial HVAC contracts carry larger tickets and planned replacement cycles, and the listing cites strengthening commercial relationships as an opportunity, so a dedicated B2B outreach push can diversify beyond residential.
Formalize technician recruiting and retention before growth stalls on headcount. In a tight California labor market, an apprenticeship pipeline and performance pay keep the 11-person team staffed and let you add capacity rather than turn away jobs.
Secure a longer-term lease or alternative facility ahead of the December 2026 expiration. At $2,400 per month the current 900 square foot space is cheap, but a short runway is a negotiating risk you want resolved before close.

Diligence notes

Pressure-test the $873K adjusted EBITDA. With no SDE disclosed and a seller-reported figure, reconcile the add-backs to tax returns and bank statements, and confirm whether a market-rate general manager salary is already in the numbers or needs to be added back out.
Verify the absentee model actually functions without the owner. Interview the general manager, confirm their tenure, compensation, and whether they are staying post-close, because the entire thesis collapses if the real operator walks or if the owner is quietly more involved than stated.
Examine revenue concentration and mix. Break out install versus service versus any recurring work, and check whether a few large commercial accounts or referral sources drive an outsized share, since losing one could swing the 26% margin materially.
Confirm the lease situation and the asset list. The lease expires December 2026 and the included FF&E is only $30K, so verify the seven vehicles and HVAC equipment are owned free and clear and transfer with the sale, not leased or financed.
Validate California licensing, workers comp, and warranty liabilities. HVAC requires a C-20 contractor license and clean insurance history, and outstanding install warranties or callback obligations are a real liability a new absentee owner inherits.

Source

Originally listed on BizBuySell. View original listing →