HVAC Installs & Repairs Franchise, Salt Lake City

$3.8M

Revenue

$646K

SDE

0.4x

Multiple

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Full Editorial Writeup

This is an HVAC installation, repair, and maintenance business operating in the Salt Lake City market as part of a national HVAC service provider network. The company generates roughly $3.8M in annual revenue across three streams: new equipment sales, recurring maintenance contracts, and repair work. It runs on a franchise or licensed model that provides national equipment provider accounts, giving the operator deep discounts on parts and new equipment plus corporate training and back-office support.

The business is positioned as an essential, needs-based service with an on-time guarantee and a customer-service-first operating platform. It employs professional, skilled technicians and is described as technology driven with strong repeat and referral business. The sale includes vehicles and all equipment assets required to run daily operations.

The listing markets the business as executively run and semi-passive, with a general manager capable of overseeing daily operations while the owner focuses on financial management and community relationship building. That positioning, combined with the corporate support infrastructure, is aimed at a buyer without prior HVAC experience who wants a cash-flowing services asset in a recession-resistant category.

Why we like it

The reported cash flow of $646k on $3.8M revenue implies a 17 percent margin, which is healthy for residential and light commercial HVAC. The three-stream mix of new installs, recurring maintenance contracts, and repairs smooths revenue and creates a base of repeat customers rather than one-off transactional work.
HVAC is genuinely essential and non-deferrable: heating and cooling systems fail regardless of the economy, and replacement demand persists through downturns. The maintenance contract base adds predictable recurring revenue and builds a customer list that drives future repair and replacement pull-through.
The national provider accounts give deep discounts on parts and equipment, which is a real cost advantage against independent local shops that pay retail. Being part of one of the largest HVAC networks in the US also brings brand recognition, marketing systems, and corporate training that de-risk operations for a non-technical owner.
Salt Lake City has strong population and housing growth with real seasonal temperature swings that drive both heating and cooling demand. A skilled technician base and technology-driven dispatch already in place mean an operator can focus on volume and margin rather than building the org from scratch.

How to improve it

Attack the maintenance contract base first: quantify the current number of active service agreements and launch a structured program to convert every repair and install customer into a recurring plan. Each contract locks in seasonal revenue and creates the pipeline for higher-margin replacement jobs down the road.
Implement disciplined dispatch and call-booking metrics tied to the on-time guarantee. Track close rate, average ticket, and technician revenue per truck, then coach and compensate to those numbers to lift throughput without adding headcount.
Build a replacement and financing sales motion for aging systems. Offer consumer financing on new installs and train techs to present system health reports, which reliably increases average ticket and captures the highest-margin work in HVAC.
Expand demand generation beyond referrals with a local digital footprint: Google Local Services ads, review harvesting, and SEO for emergency HVAC searches. Repeat and referral is a strong base, but paid and organic lead flow lets you fill technician capacity during slower shoulder seasons.
Cross-sell adjacent recurring services such as indoor air quality, duct cleaning, and water heater work using the existing customer list and truck rolls. These add revenue per visit with minimal incremental customer acquisition cost.
Verify and then optimize the labor model. If technicians are the constraint on growth, build an apprenticeship pipeline and a compensation structure that retains skilled techs, since technician availability, not demand, is usually the ceiling in home services.

Diligence notes

The asking price of $229,900 against $646k in stated cash flow is a 0.36x multiple, which is far below any reasonable HVAC comp and is a red flag that demands explanation. Confirm whether this is a franchise resale where the buyer assumes debt, ongoing royalty and franchise fees, or whether the cash flow figure is franchise-network aggregate rather than this location's actual owner earnings.
The industry is listed as Staffing and the business is described as part of a national network, so clarify the exact ownership structure. Determine if this is a true operating business with its own customers and technicians or a territory/franchise license, and get the franchise agreement, royalty schedule, and territory rights in writing.
Scrutinize the $646k cash flow with three years of tax returns and bank statements. Reconcile it against the $3.8M revenue, separate one-time equipment sales from recurring maintenance and repair revenue, and confirm whether the figure is pre- or post-royalty and manager compensation given the semi-passive claim.
The semi-passive, GM-run positioning must be validated: identify who the current general manager is, their compensation, and whether they stay post-sale. If the GM is the owner or leaves, the labor cost to replace them and the true owner workload change the economics materially.
Confirm the value and condition of the vehicles and equipment included in the sale. Get an itemized asset list with ages, mileage, and liens, since the fleet and tools are the core hard assets backing this deal and directly affect what you are actually buying for the price.
Verify the technician roster, licensing, and any non-compete or retention risk. In HVAC the licensed techs are the business, so confirm state licensing is held at the entity level or by employees who will stay, and understand customer concentration between residential, commercial, and any national account work.

Source

Originally listed on BusinessBroker.net. View original listing →