Established HVAC & Refrigeration Company, Michigan Commercial & Residential

Full Editorial Writeup

This is a full-service HVAC and refrigeration operation in Michigan doing $5.5M in revenue with $1.2M of owner cash flow, a healthy 22% SDE margin for a mechanical-services business. The company plays across both HVAC and commercial refrigeration, which is a smart combination: refrigeration adds a technical, higher-barrier revenue stream that most residential HVAC shops cannot touch. Services span installation, repair, replacement, preventative maintenance, and emergency service.

What makes this one interesting is the customer diversification. Instead of leaning entirely on residential, the book spans hotels, restaurants, gyms, wellness facilities, and other commercial and specialty accounts. That hospitality and fitness exposure matters because those facilities run climate and refrigeration systems hard, break often, and cannot afford downtime, which creates a natural pull toward maintenance contracts and repeat emergency calls.

The listing is light on specifics (no founding year, no breakdown of recurring vs project revenue, no team detail), so a buyer is underwriting the category and the cash flow more than a fully documented operation. Priced at $5M against $1.2M cash flow, this is a 4.17x deal, which is fair-to-slightly-full for a services business of this size unless the recurring maintenance base and refrigeration expertise are genuinely durable.