Northern New England Commercial HVAC & Plumbing Contractor, 25-Year New Hampshire Operator

$17.7M

Revenue

$3.1M

SDE

6.0x

Multiple

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Full Editorial Writeup

This is an established commercial HVAC and plumbing contractor operating in northern New England, founded in 2000 and generating roughly $17.7 million in LTM revenue on approximately $3.06 million of normalized EBITDA. The core of the business is project-driven work: about 74% of revenue comes from commercial construction and retrofit, split roughly 75-80% ground-up new construction and 20-25% retrofit. A rapidly growing service and preventative-maintenance division makes up the balance, having grown around 150% in 2025 with more expected in 2026.

The company's edge is getting in early. Management often provides preconstruction estimates and value engineering, which positions them favorably on RFPs, and they self-perform a large share of scope across plumbing, piping, HVAC, sheet metal and controls, bringing in specialty subs only when economics or schedule dictate. The customer base is diversified with no single account above 15% of revenue, and roughly $14 million of contracted backlog provides real forward visibility, with about $8 million expected to convert into 2026 revenue.

What makes this notable is the setup for a classic construction-to-service flywheel. The firm installs equipment via project work, then has a natural path to convert that installed base into PM agreements, repair, and replacement revenue. Today PM contracts only generate about $350k of recurring revenue, so the recurring annuity is small relative to the installed base, which is both a weakness and the clearest value creation lever in the deal.

Why we like it

Earnings quality is anchored by a diversified commercial customer base with no account above 15% of revenue and roughly $14 million in contracted backlog, about $8 million of which should convert to 2026 revenue. The EBITDA is normalized with documented adjustments for owner expenses, non-recurring items, and intercompany transactions, which gives a buyer a defensible starting point for diligence.
The moat is operational depth: the ability to self-perform plumbing, piping, HVAC, sheet metal, and controls, plus early involvement in preconstruction estimating and value engineering. That early-budgeting position on RFPs is a genuine competitive advantage in commercial bidding and hard for a transactional competitor to replicate.
Commercial HVAC and plumbing is a need-to-have service that holds up in downturns, since building systems must be maintained, repaired, and brought to code regardless of the economic cycle. Even if new construction slows, the retrofit and service work provides a defensive counterweight.
The service and PM division grew roughly 150% in 2025 and sits on top of a large installed base from years of project work. With only about $350k of PM revenue currently captured, the operator advantage is obvious: a buyer who systematizes construction-to-service handoff can build a much larger recurring annuity on top of an already profitable contracting business.

How to improve it

Formalize the handoff from completed construction projects into service and PM contracts. Right now this is informal and leaks value, so assigning an owner and compensation structure to convert every installed system into a maintenance agreement is the single highest-leverage move in the first 90 days.
Aggressively grow the PM book beyond the current $350k. Each PM agreement is a wedge for higher-margin repair and replacement work, so standardizing annual and semiannual contract offerings and bundling them into every project closeout should compound recurring revenue quickly.
Build out service division pricing and dispatch discipline. Service grew 150% in 2025, which often outpaces systems, so implementing field service software, technician utilization tracking, and consistent billing for parts and repairs will protect margin as the division scales.
Shift revenue mix toward retrofit and service to smooth the construction cycle. Ground-up construction is lumpy and backlog-dependent, so deliberately weighting the pipeline toward retrofit and recurring work reduces revenue volatility and raises the blended multiple at exit.
Tighten estimating and project selection to defend the 17.3% EBITDA margin. With multiple estimators and more than ten foremen, instituting a disciplined bid-margin floor and post-project margin review ensures growth does not come at the cost of profitability.
Reduce key-person risk by documenting the roles of the VP/Field Manager and VP of Finance and building a second layer of leadership. The team already reduces owner dependence, but locking in key managers with retention packages protects continuity through the ownership transition.
Pursue selective tuck-in acquisitions of smaller local HVAC and plumbing service firms. A buyer with capital can use this platform's back office and estimating strength to roll up fragmented service shops, instantly expanding the recurring base and geographic footprint.

Diligence notes

Reconcile the EBITDA figures carefully. The listing cites LTM normalized EBITDA of about $3.06 million but also an estimated 2026 YTD normalized EBITDA of only $2.3 million, and prices the deal at 6x 2026 annualized EBITDA, so confirm which number the multiple is actually applied to and scrutinize every normalization adjustment including owner and vehicle items.
Validate the backlog quality and conversion. Of the roughly $14 million contracted, only about $8 million is expected to hit 2026, so review signed contracts, change-order history, and the realism of the projected rebuild to $20 million by year-end 2026 before underwriting the growth story.
Examine project-level margins and work-in-process accounting. Ground-up commercial construction carries completion risk, cost overruns, and retainage, so review percentage-of-completion schedules, historical gross margin by project, and any disputed or loss jobs.
Confirm the real estate lease terms. The owner retains the 5,800 sq ft office and 6,750 sq ft warehouse HQ and will lease it back NNN for five years, so verify the rent is at market and model that cost into go-forward EBITDA since it is a real operating expense post-close.
Assess labor and licensing dependency. With 62 employees including more than ten foremen and the need for licensed plumbers and HVAC techs in a tight northern New England labor market, review wage inflation, union status, retention, and the transferability of any master licenses.
Pressure-test the service division growth. The 150% service growth in 2025 is impressive but off a small base, so separate recurring PM revenue from one-time repair and replacement work and confirm the recurring annuity is genuinely contracted rather than repeat-but-rewon.

Source

Originally listed on BizBuySell. View original listing →