Highland Falls HVAC, 34-Year Orange County NY Contractor

$1.1M

Revenue

$588K

SDE

1.7x

Multiple

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Full Editorial Writeup

This is a 34-year-old HVAC contracting business in Highland Falls, New York, serving Orange County within roughly a 30-minute radius of its 2,100 square foot warehouse and office. The customer mix skews heavily residential at 80-90 percent, with the balance being light commercial work up to 12-ton units. Work splits evenly between service calls and new installations, and the business steers clear of refrigeration and does minimal boiler work, subcontracting that out. The company does not do refrigeration and has no service contracts in place.

The standout feature here is the earnings profile relative to size. On $1.14M of 2025 revenue the business threw off $587,905 in SDE, a roughly 52 percent owner-earnings margin that is exceptional for a residential HVAC shop. That margin, combined with 34 years of reputation, tells you this is a lean, referral-driven operation with a loyal repeat base and essentially zero marketing overhead. The owner has built the whole thing on word-of-mouth with no website and no ad spend.

What makes it interesting to a buyer is the gap between how the business runs today and what it could be. No website, no marketing, no service contracts, and no refrigeration line means the demand is entirely organic and the growth levers are untouched. At a 1.66x SDE multiple with seller financing at 60 percent down and SBA eligibility for experienced HVAC buyers, the entry price is aggressive for the cash flow on offer.

Why we like it

The earnings quality is the headline: $587,905 SDE on $1.14M revenue is a 52 percent owner-earnings margin, which is well above typical residential HVAC shops. Two consecutive years near $588K SDE (2025 and 2024) show the number is stable, not a one-year spike, though 2023 SDE of $434K on higher revenue is worth understanding.
The moat is 34 years of local reputation with zero marketing spend, which means the customer base is genuinely sticky and cheap to serve. In a 30-minute service radius, being the go-to name for three decades creates real switching friction and pricing power that a new marketing-funded competitor cannot buy overnight.
HVAC is about as recession-resistant as home services get. When a furnace or AC fails, it gets fixed regardless of the economy, and the 50/50 split between service and new installs gives some cushion if discretionary install demand softens in a downturn.
The valuation and deal structure are buyer-friendly. A 1.66x SDE multiple is cheap for this margin profile, and the seller offering financing at 60 percent down plus SBA eligibility for experienced operators gives you multiple paths to close with real leverage on the purchase.

How to improve it

Build a basic website and Google Business Profile in the first 90 days. The business has dominated on word-of-mouth with literally no web presence, so even a simple site with reviews and a booking form should capture demand that is currently invisible to the shop.
Introduce annual maintenance service agreements immediately. The listing explicitly notes no service contracts, which is leaving recurring revenue and customer retention on the table. Converting even a fraction of the existing base to a paid maintenance plan smooths cash flow and lifts enterprise value.
Layer in paid search and local lead-gen once the site is live. A 30-minute service radius with strong brand recognition is ideal for geo-targeted ads, and modest spend against a base with zero prior marketing should produce outsized incremental installs.
Add refrigeration and expand boiler capabilities in-house. The shop currently declines refrigeration and subcontracts boiler work, so bringing these services in-house captures margin currently sent to competitors and widens the addressable job pool.
Expand the service radius beyond 30 minutes with a second van and technician. Demand is being self-limited by geography, and given the referral engine, a disciplined push into adjacent Orange County towns should scale revenue without proportional marketing cost.
Systematize dispatch, scheduling, and pricing with field-service software. A 34-year owner-run shop likely runs on memory and paper, so installing tools like ServiceTitan or Housecall Pro protects continuity through the transition and unlocks technician productivity gains.
Implement structured upsell scripts for install-versus-repair decisions. With a 50/50 service-to-install mix, training techs to convert aging-system service calls into replacement quotes can meaningfully raise average ticket and total install volume.

Diligence notes

Reconcile the revenue and SDE swings across years. 2023 showed $1.44M revenue but only $434K SDE, while 2024 and 2025 showed lower revenue near $1.05-1.14M with much higher $588K SDE. Understand what drove the margin jump, whether it was owner add-backs, pricing, or a mix shift away from lower-margin installs.
Verify the SDE add-backs and confirm what owner labor is embedded. A 52 percent margin on a two-van residential shop is exceptional, so scrutinize whether the seller is personally performing billable work, dispatch, and estimating that a new owner would need to replace with paid staff.
Assess technician and staffing dependence. The listing gives no detail on team size or tenure, and a heavily owner-driven operation with no marketing may hinge on the owner's relationships and skill. Confirm whether licensed techs stay through the transition and how customers are retained.
Confirm the transition and seller support terms, which are not disclosed. Given the reliance on 34 years of personal reputation, negotiate a meaningful handover period and customer introductions, and tie a portion of seller financing to retention or a training commitment.
Review the lease on the 2,100 square foot warehouse and detached garage. The real estate is leased, so verify remaining term, renewal options, rent escalation, and whether the landlord is related to the seller, since an unfavorable or short lease is a real operational risk.

Source

Originally listed on BizBuySell. View original listing →