Bethany Air, 34-Year Central Maryland HVAC Contractor

$5.0M

Revenue

$702K

SDE

5.0x

Multiple

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Full Editorial Writeup

Bethany Air is a well-established, family-owned HVAC company serving Central Maryland for more than 25 years. Founded in 1992, Incoroprated in 2002, the company has built a strong reputation for... Businesses Franchises Brokers Loading... Established HVAC Contractor – $5M Revenue | 1,300+ 5-Star Reviews Edgewater, MD (Anne Arundel County) Asking Price:$3,475,000 Cash Flow (SDE):$702,000 EBITDA:Not Disclosed Gross Revenue:$5,000,000 Established:2002 Established HVAC Contractor – $5M Revenue | 1,300+ 5-Star Reviews Business Description Strong Brand Recognition-Loyal Customer Base & Growth Potential Bethany Air is a well-established, family-owned HVAC company serving Central Maryland for more than 25 years. Founded in 1992, Incoroprated in 2002, the company has built a strong reputation for exceptional customer service, quality workmanship, and long-term customer relationships. Bethany Air provides residential, commercial, and light industrial heating and air conditioning services throughout Anne Arundel County, Prince George's County, Montgomery County, Howard County, Calvert County, and surrounding areas.The company offers a full range of HVAC services, including:Residential and commercial service and repairComplete HVAC system replacementsHeat pumps, furnaces, boilers, rooftop units, and ductless mini-splitsPreventative maintenance agreementsIndoor air quality solutionsNew construction and retrofit installations24-hour emergency serviceSheet metal fabrication and custom ductworkFinancial HighlightsApproximately $5,000,000 in annual revenuePositive operating cash flowEstablished recurring maintenance agreement customer baseStrong replacement and service mixOpportunity for significant EBITDA improvement through operational efficiencies and economies of scaleCompetitive AdvantagesWell-recognized local brand with over two decades of market presenceExcellent online reputation with over 1,300 five-star Google reviewsBBB Accredited businessFamily-owned business with strong community reputationLicensed, insured, and fully permitted contractorServices all major HVAC manufacturersExperienced management team and trained techniciansDiversified residential and commercial customer baseEstablished vendor and distributor relationshipsFully equipped service fleet and operational infrastructureModern website with online instant quote capabilities and strong local SEO presenceGrowth OpportunitiesThe company offers numerous opportunities for expansion, including:Geographic expansion into additional Maryland marketsIncreased commercial maintenance contractsExpanded plumbing and electrical service offeringsAdditional technician hiring to increase service capacityCross-selling indoor air quality and home performance productsEnhanced digital marketing and recurring membership growthStrategic acquisitions of smaller local contractorsIdeal BuyerThis opportunity is well suited for:Regional HVAC contractors seeking expansionNational consolidatorsPrivate equity platform or add-on acquisitionsHome services companies looking to enter the Maryland marketStrategic industry buyers seeking an established brand and experienced workforceTransitionOwnership is willing to provide a comprehensive transition period to ensure a smooth transfer of customer relationships, vendor partnerships, and operational processes. The owner is open to discussing continued involvement for a mutually agreed-upon period if desired.ConfidentialityAll inquiries are strictly confidential. Prospective buyers will be required to execute a Non-Disclosure Agreement (NDA) prior to receiving detailed financial statements, customer information, and operational documentation.Additional information, including financial statements, equipment lists, maintenance agreement details, and operational metrics, will be provided to qualified buyers following execution of a confidentiality agreement. Ad#:2528913 Detailed Information Inventory: $50,000Not included in asking price Furniture, Fixtures, & Equipment (FF&E): $250,000 Included in asking price Employees: 17 Full-time Facilities: 6000 Square ft Building offered for sale or lease.Fleet of Trucks (all paid in full)All FFEAll stockASSETS INCLUDEDCustomer DatabaseBusiness NameGoodwillWebsitePhone NumbersDomain NamesFleetEquipmentWarehouse EquipmentOffice FurnitureComputersInventoryVendor RelationshipsMarketing AssetsOperating ProceduresTraining Materials Competition: Bethany Air operates in the growing Central Maryland HVAC market, serving Anne Arundel, Calvert, Prince George's, Howard, and surrounding counties. The market is highly fragmented, with no single company dominating, creating opportunities for established local contractors with strong reputations. Rising demand for system replacements, high-efficiency heat pumps, maintenance, and indoor air quality solutions supports long-term industry growth. Bethany Air is an attractive acquisition due to its nearly 30-year history, approximately $5 million in annual revenue, diversified residential and commercial services, recurring maintenance revenue, and exceptional reputation with over 1,300 five-star Google reviews. We offer an experienced team, established operating systems, and significant growth potential through expanded commercial services, maintenance agreements, geographic expansion, and strategic acquisitions, making it an ideal platform for continued growth and increased profitability. Growth & Expansion: Bethany Air provides an exceptional platform for future growth through both organic expansion and strategic acquisitions. Key opportunities include expanding the residential maintenance agreement program, increasing commercial service and preventive maintenance contracts, growing replacement sales through enhanced marketing and financing, and expanding into adjacent Maryland markets. A buyer can also acquire smaller HVAC companies to increase market share and improve operating efficiencies. Adding plumbing and electrical services would transform Bethany Air into a full-service home and commercial services company, creating significant cross-selling opportunities, increasing recurring revenue, improving customer retention, and maximizing revenue from its existing customer base. With an established brand, experienced team, scalable infrastructure, and loyal customer base, Bethany Air is well positioned for sustained growth and increased profitability. Financing: Some financing available Support & Training: The owner will train and support for 6 months Business Location Location: Edgewater, MD Real Estate: Leased Building SF: 6,000 Rent: $10,000 per month Financial Benchmarks for Maryland HVAC Businesses Gross Revenue Benchmarks Cash Flow (SDE) Benchmarks EBITDA Benchmarks BizBuySell EDGE Demographic Information for Edgewater Area Household Income Population Age Population Trend Population by Race/Ethnicity BizBuySell EDGE Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Davis Hodge Phone Number 332-223-5540 Voice only (no SMS) Ad#:2528913 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number Enter Phone Number Email Address* Enter Email Address Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. Send Message By clicking the button, you agree to BizBuySell’s Terms of Use and Privacy Notice Business Listed By: Davis Hodge Phone Number 332-223-5540 Your request has been sent. What Happens Next? is reviewing your details. A representative will reach out soon to discuss your options. Expect a response in 1-2 business days. Report an issue with this listing Similar Listings HVA

Why we like it

Earnings quality is anchored in a recurring maintenance agreement base plus a healthy replacement and service mix, which smooths the seasonality that plagues pure install shops. At $702k cash flow on $5M revenue, the roughly 14 percent SDE margin is respectable for HVAC and leaves room for the operational improvement the seller flags.
The moat is real and hard to replicate: 34 years of market presence and 1,300-plus five-star Google reviews in a business where consumers pick contractors almost entirely on trust and reputation. That review moat is the single biggest driver of lead flow and closing rates, and it would cost a new entrant years and heavy marketing spend to match.
HVAC sits squarely in the recession-resistant category because heating and cooling failures are non-discretionary emergencies, not deferrable wants. Central Maryland is a fragmented market with rising demand for high-efficiency heat pumps, replacements, and indoor air quality upgrades, giving both organic and roll-up runway.
The operator advantage is a turnkey platform: 17 employees, an experienced management team, trained techs, a fleet owned free and clear, and documented operating procedures and training materials. A buyer inherits a running machine rather than having to build systems from scratch, which lowers execution risk on day one.

How to improve it

Attack the maintenance membership program in the first 90 days by auditing current agreement counts, renewal rates, and pricing. Every incremental recurring member increases both cash flow predictability and the eventual resale multiple, so set a specific membership growth target and tie tech compensation to enrolling customers on every service call.
Add plumbing and electrical service lines to cross-sell into the existing customer base and the 1,300-plus review reputation. This turns Bethany Air into a full-service home services company, raises revenue per customer, and improves retention without proportional new-customer acquisition cost.
Install a replacement financing program and train the sales process around it. HVAC replacement close rates rise sharply when customers can finance a $10k-$15k system, and financing partners often pay a rebate, so this improves both top-line and margin.
Build a formal call-tracking and lead attribution system tied to the website, local SEO, and instant-quote tool. Understanding cost per booked job by channel lets you cut wasted spend and scale the channels that convert, directly widening the SDE margin the seller says is improvable.
Pursue tuck-in acquisitions of smaller local contractors as the seller suggests, using Bethany's back office, brand, and review base to absorb their revenue at lower overhead. Small HVAC shops often trade at 2x to 3x SDE, so buying below your own 4.95x entry multiple is immediately accretive.
Renegotiate or resolve the facility lease before close, since $10k per month is a material fixed cost and the building is offered for sale or lease. Locking a long-term lease at a favorable rate, or buying the building at a fair price, removes a landlord risk that could otherwise squeeze the very margins you are underwriting.
Implement dispatch and route optimization software to increase daily calls per tech and reduce windshield time across a five-county service area. Even a modest gain in jobs completed per truck per day flows almost entirely to the bottom line given the fixed fleet and labor base.

Diligence notes

Scrutinize the $702k cash flow figure against tax returns and P&Ls, and confirm exactly what owner add-backs are included. At a 4.95x multiple you are paying full price, so any inflated SDE or aggressive add-back materially changes the real entry multiple and your debt coverage.
Quantify the recurring maintenance base precisely: number of active agreements, average contract value, annual renewal rate, and what percentage of total revenue it represents. The listing leans on recurring revenue as a selling point, but the durability of the whole thesis depends on those numbers being real and sticky.
Investigate technician staffing, tenure, and licensing depth given only 17 employees run a $5M operation. HVAC is acutely labor-constrained, so confirm the master license status, whether it is tied to the departing owner, and the risk of key techs leaving post-close.
Underwrite the lease carefully since rent is $10k per month and the building is offered for sale or lease separately. Confirm remaining term, renewal options, and market rate, and price out the buy option so you know your true occupancy cost under both scenarios.
Review the customer concentration split between residential and commercial, and confirm no single commercial account or new-construction relationship drives an outsized share of revenue. New construction and light industrial work can be cyclical, so understand how much of the $5M is discretionary project work versus steady service and replacement demand.
Verify the seller's transition commitment and the master license transfer in detail, since a 6-month training window may be insufficient if the owner personally holds the license or key vendor relationships. Nail down continued involvement terms in writing before close to avoid an operational cliff.

Source

Originally listed on BizBuySell. View original listing →