Reputable HVAC Services, Colorado Springs Residential Contractor

$4.3M

Revenue

$573K

SDE

3.0x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

This is a well-established HVAC contractor serving the growing El Paso County market around Colorado Springs, founded in 2014. The business generates roughly $4.35M in annual revenue and $573K in seller's cash flow, with residential service and installation now making up about 70% of revenue. It carries a strong local brand, 15 trained full-time technicians, a loyal customer base, and hundreds of 5-star online reviews.

The revenue mix blends recurring service work, equipment replacement, and new installation demand, which gives the business multiple revenue legs in a market where heating and cooling are non-discretionary necessities. The company absorbed construction-related headwinds in 2025 but rebounded in 2026, with activity trending back toward 2024 levels and momentum carrying into 2027.

The owners are relocating and willing to provide a flexible transition. The real estate (a 5,000 SF building) is owned but offered separately for lease or purchase at $2,750,000, not included in the $1.7M asking price. Priced at roughly 2.97x cash flow, this is positioned as a platform acquisition for a strategic buyer wanting an established Colorado Springs presence rather than building one organically.

Why we like it

Earnings quality is solid for the category, with $573K in cash flow on $4.35M revenue, a reported trailing SDE trending above $700K, and a reasonable 2.97x multiple. The 70% residential service and install mix spreads risk across repair, replacement, and new work rather than leaning on volatile new construction alone.
HVAC demand is genuinely durable since heating and cooling are non-negotiable in Colorado's climate, and equipment eventually fails regardless of the economy. Hundreds of 5-star reviews and a strong local brand create a referral and repeat-service flywheel that is expensive and slow for competitors to replicate.
El Paso County is one of the faster-growing metros in Colorado, which feeds a steady stream of new installations, aging-system replacements, and service contracts. Population and housing growth keep the replacement pipeline filling without the operator needing to buy expensive leads.
An owner-operator or regional consolidator inherits 15 trained technicians and an established back office, so growth is about adding trucks and capturing share rather than building from zero. The seller is relocating, not distressed, and offers a flexible transition, which supports a cleaner handoff.

How to improve it

Stand up or expand a formal maintenance membership program to convert one-time service customers into recurring contract revenue. Memberships smooth seasonal cash flow, lock in replacement work, and materially lift the valuation multiple on exit.
Audit and rebuild the lead-to-close process with call booking rates, technician close rates, and average ticket tracked weekly. Even a few points of improvement on an existing $4.35M base flows almost entirely to the bottom line.
Reduce the construction-related revenue exposure that caused the 2025 dip by weighting sales and marketing toward replacement and service, which hold up better in a downturn. This both stabilizes earnings and makes the business more defensible.
Invest in reviews, local SEO, and paid search to dominate Colorado Springs HVAC search results. The business already has hundreds of 5-star reviews, so compounding that reputation into top local visibility is a high-ROI, low-capital lever.
Implement or upgrade field service management software for dispatching, flat-rate pricing, and financing offers at the point of sale. Financing in particular lifts installation close rates on high-ticket replacement jobs.
Negotiate the real estate decision deliberately, either leasing at a market rate to preserve capital or buying the building if the $2.75M price pencils against rent. Keeping the $1.7M operating acquisition separate from the real estate keeps return on equity cleaner.
Cross-train and add technicians to lift capacity, since 15 techs on $4.35M suggests room to raise revenue per tech with better scheduling and routing. Capacity expansion is the clearest path to organic growth in a demand-rich market.

Diligence notes

Reconcile the headline numbers: the listing cites both $573K cash flow and over $700K in trailing SDE through September 2026. Confirm which period and add-backs produce each figure and whether the TTM reflects a true run rate or a temporary post-rebound bounce.
Dig into the 2025 construction-related downturn to understand what drove it and whether the 2026 rebound is durable. Pull monthly revenue by segment for 2023 through 2026 to verify the recovery and separate residential service from lumpier new-construction work.
Validate the recurring revenue claim by quantifying active maintenance agreements, membership count, and renewal rates. If most revenue is actually transactional repair and install, the recurring characterization and the multiple both deserve scrutiny.
Assess technician dependence and retention, since the value is largely in 15 trained field staff. Review compensation, tenure, non-competes, and whether any key techs or a general manager are tied to the departing owner and likely to leave.
Clarify the real estate economics before closing: model the business at a market lease versus buying the $2.75M building, and confirm lease terms are available if you do not buy. The combined $4.45M outlay changes the return profile meaningfully.
Review customer concentration, warranty obligations, and any outstanding install callbacks or liabilities. In HVAC, labor warranties and callback rates can quietly erode margins, so verify the true service cost tail on recent installations.

Source

Originally listed on BizBuySell. View original listing →