B2B Low-Voltage HVAC Controls Contractor, Western US

$12.1M

Revenue

$1.3M

SDE

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Full Editorial Writeup

This is a business-to-business low-voltage control systems contractor that installs and upgrades HVAC and building electronics for commercial and institutional facilities. It works as a specialty electrical subcontractor to general contractors, specialty contractors, and property developers across a diversified set of end markets including healthcare, education, research, corporate, residential, government, and military. Roughly 75% of 2025 project volume came from upgrades and retrofits of existing control systems, with the remaining 25% from new construction, a mix that skews toward the more recurring, less cyclical side of construction work.

The financial profile is unusually strong for a subcontractor. Revenue reached $12.1M with $1.26M of EBITDA, and the business grew revenue at a 22% CAGR and EBITDA at a 14.6% CAGR from 2023 through the TTM ending June 2026. The headline stat is that 99% of TTM revenue came from repeat clients, anchored by a master service agreement with its top customer, and there is roughly $7.6M of contracted backlog remaining to be billed as of June 2026.

What makes this notable is the combination of sticky institutional relationships, a retrofit-heavy revenue mix, and an asset-light footprint (a single leased 3,000 sq. ft. facility). The three owners run the business as president and project managers and all intend to stay post-close, which supports continuity but also flags meaningful key-person and margin dependency that a buyer must underwrite carefully.

Why we like it

Earnings quality is high for the category: $1.26M EBITDA on $12.1M revenue with 99% of TTM revenue from repeat clients and a master service agreement on the top account. That repeat concentration and a $7.6M contracted backlog give real forward visibility that most one-off construction subs simply do not have.
The moat is relationship and specialization driven. Low-voltage HVAC controls is a technical niche where general contractors reward proven, association-connected subs with repeat work, and being embedded across healthcare, education, research, and government projects creates switching friction and steady bid flow.
Market tailwinds favor the retrofit mix. With about 75% of 2025 projects being upgrades and retrofits of existing control systems, the business rides building efficiency and modernization spend that continues through cycles rather than depending on new construction starts.
Operator advantage is clear for a buyer with a business development function. The owners admit they have no dedicated sales team and rely on referrals and associations, so adding structured BD, geographic expansion, and formal preferred-sub agreements could compound a business already growing 22% on revenue.

How to improve it

Hire a dedicated business development professional in the first quarter. The owners flag having no internal sales team, so a single senior BD hire tied to the existing association network can convert relationships into a repeatable pipeline instead of relying on the three owners for origination.
Formalize master service agreements and preferred-subcontractor status with the top general contractors and facility owners. Converting informal repeat relationships into signed MSAs improves revenue visibility, protects against the 99% repeat base being poached, and materially raises the multiple at exit.
Address customer concentration around the top MSA client. Map exactly how much revenue sits with the single largest account and deliberately grow the next tier of GCs and end clients so the business is not one relationship away from a revenue shock.
Push geographic expansion into neighboring states using the same association channels. The asset-light model (one 3,000 sq. ft. leased facility) means expansion is about field labor and licensing, not capital, so measured entry into adjacent markets can add revenue without heavy fixed cost.
Build a documented project management and estimating playbook to de-risk the owner-operators. All three owners serve as president and project managers, so codifying bidding, project controls, and client handoffs is essential before or immediately after close to reduce key-person dependency.
Improve billing cadence and backlog conversion tracking. With $7.6M remaining to be billed, tighten progress billing, retention collection, and cash conversion cycles to fund growth internally and smooth the lumpiness inherent in project revenue.
Layer in recurring service and maintenance contracts on installed control systems. The company already touches the installed base through retrofits, so adding ongoing monitoring and maintenance agreements would convert project work into higher-margin, truly recurring revenue.

Diligence notes

Quantify the repeat-revenue and concentration claim precisely. Confirm what share of the 99% repeat revenue and total EBITDA depends on the single top MSA client, review the actual MSA terms, and stress test what happens if that relationship or its GC contact leaves.
Underwrite the three-owner dependency and post-sale economics. All three are active as president and project managers and intend to stay, so define comp, employment agreements, retention timelines, and what the business looks like if any of them exits earlier than promised.
Verify the backlog and margin quality. Confirm the $7.6M remaining backlog is contracted rather than pipeline, review gross margin by project type (retrofit vs new construction), and check for underbid jobs, change-order disputes, or warranty exposure baked into EBITDA.
Validate the EBITDA adjustments and true cash flow. The listing reports adjusted EBITDA of $1.26M with no SDE or asking price disclosed, so reconcile the add-backs, owner compensation normalization, and working capital swings typical of project-based subcontractors.
Confirm labor availability and licensing. The business relies on skilled low-voltage technicians accessed through association networks, so assess crew retention, prevailing wage exposure on government and military work, and the licensing needed to expand geographically.

Source

Originally listed on BizBuySell. View original listing →