Sarasota & Manatee County Residential HVAC Contractor, 15-Year Florida Operator

$2.0M

Revenue

$618K

SDE

5.3x

Multiple

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Full Editorial Writeup

This is a residential HVAC contractor serving homeowners across Sarasota and Manatee Counties in Florida, offering repair, maintenance, system replacement, and custom home installation. More than 90 percent of revenue comes from residential service and system changeout work, and the business operates with nine employees and five owned service vehicles that convey free of debt. It runs under a state certified air conditioning contractor license and carries a database of roughly 3,400 customer records, of which 400 are active maintenance agreement holders.

The financials are clean for a business this size. FY2025 revenue came in at $2.0M with recast SDE of $618K, a 30.9 percent margin that expanded from 25.8 percent the prior year. The company reports a 4.9 star average across 500-plus reviews, 98 percent annual retention, and no single customer above 10 percent of revenue. It is asking $3.25M, a 5.26x SDE multiple, and is SBA prequalified.

What makes this notable is the combination of Sunbelt tailwinds and a reputation-driven service model in a market where cooling is a year-round necessity. Metro population is up 13.7 percent since 2020, which drives both replacement demand from aging systems and new installation from custom home construction. The obvious lever is that only 400 of 3,400 customers are on recurring agreements, leaving significant room to deepen recurring revenue penetration.

Why we like it

Earnings quality is strong for the size: 30.9 percent SDE margin on $2.0M revenue, expanded from 25.8 percent the prior year, with no customer above 10 percent of revenue and 98 percent annual retention. This is a fragmented, diversified book rather than a concentration risk dressed up as a business. The margin expansion trend suggests either pricing power or operational discipline, both worth confirming.
The moat is reputation and license-gated supply. A 4.9 star average across 500-plus reviews in a referral-driven trade is a genuine barrier, and the requirement that any buyer be qualified by a Florida certified AC contractor limits the pool of casual competitors. The 3,400 customer database is a durable asset that generates repeat changeout and service revenue over time.
Market tailwinds are as clean as they come in home services. Sarasota-Manatee population is up 13.7 percent since 2020, and Florida cooling demand runs year-round, so both replacement cycles and new construction feed the pipeline. HVAC is non-discretionary: when the AC fails in a Florida summer, homeowners pay regardless of the economy.
The operator advantage is a clear, unexploited recurring revenue lever. Only 400 of 3,400 customers hold maintenance agreements, so converting even a fraction of the existing base would lift high-margin recurring revenue without new customer acquisition cost. The seller will remain as license qualifier, which de-risks the transition for a buyer without their own Florida AC license.

How to improve it

Launch an aggressive maintenance agreement conversion campaign against the existing 3,400 customer database within the first 90 days. Moving penetration from roughly 12 percent toward 30 to 40 percent would materially increase recurring, high-margin revenue and smooth seasonal cash flow. This is the single highest-leverage move and requires no new lead generation.
Expand into commercial service and installation, which the description confirms is already within the existing license scope. Commercial contracts tend to carry larger ticket sizes and stickier relationships, diversifying beyond the residential base. Start by mining existing residential relationships for property manager and small business referrals.
Add adjacent service lines the seller identified, specifically attic insulation and duct lining, to increase revenue per truck roll. These are natural upsells during service and changeout visits and require modest incremental training rather than new licensing. Bundle them into maintenance agreement tiers to raise average contract value.
Pursue the four adjacent Florida markets ownership has already scoped. Geographic expansion in a proven, license-gated trade is lower risk than entering unfamiliar service categories, and can be funded partly by the recurring revenue base. Sequence this after the maintenance conversion and commercial pushes to avoid overextending a nine-person team.
Implement dispatch and CRM software to tighten scheduling, technician utilization, and follow-up on lapsed customers. A business running five trucks on a 3,400 record database likely has meaningful reactivation revenue sitting idle. Systematizing this also makes the business more attractive and defensible at a future exit.
Budget immediately for the excluded operating location, since the owner-held yard and office will not be leased. Secure a comparable facility before or at closing to avoid an operational gap. Factor this recurring occupancy cost into the pro forma, because it is a real expense the seller's SDE does not currently reflect.

Diligence notes

Scrutinize the SDE recast and the margin jump from 25.8 to 30.9 percent. Confirm which addbacks were used, whether the margin expansion is durable or driven by a one-time pricing or mix shift, and whether it holds up in monthly trailing twelve month data rather than a single strong fiscal year.
Verify the license qualifier arrangement in detail, because the entire deal hinges on it. Understand the seller's terms and duration for remaining as qualifier, the cost to hire a permanent qualifier, and the timeline and feasibility for the buyer to obtain their own Florida certified AC license. This is the critical path to closing.
Quantify the excluded real estate impact carefully. The operating yard and office are owner-held and will not be leased, so obtain local market rent comps for a comparable facility and confirm the SDE does not already include a favorable or below-market occupancy figure that would overstate true operating profit.
Validate the recurring revenue and retention claims at the account level. Confirm the 400 maintenance agreements are transferable, the contract terms and renewal rates, and whether the 98 percent retention figure counts agreement renewals or total customer repeat behavior. Also confirm no revenue concentration in a handful of large custom home builders.
Assess the nine-person team and technician dependency. Determine how many are licensed or senior technicians, their tenure, compensation, and flight risk post-sale, since a reputation-driven service business lives or dies on retaining skilled labor. Confirm the five vehicles are in serviceable condition and convey title-clear at closing as stated.

Source

Originally listed on BizBuySell. View original listing →