Systems that moderate temperature and control air quality are some of the most coveted luxuries. Heating, ventilation, and air conditioning (HVAC) systems are a prerequisite for both commercial and residential buildings, which means mechanics and installers will be in constant demand. In fact, the Bureau of Labor Statistics predicts a 15 percent industry growth rate through 2026, a much faster rate than the national occupational growth average. That means that if you were considering buying an HVAC business, there might be no better time than now.
Before you draw up the paperwork and pull out your checkbook, there are a few things you need to do before you buy an HVAC business.
An important first step in making a purchasing decision is conducting research. Research the local market, area competition, and future industry projections for your region. The HVAC industry is dependent on a couple of different factors: environmental regulations—which vary from state to state, new building construction, and technological innovation.
Super-sophisticated, at-home climate-control systems are becoming more popular, and a growing emphasis on energy efficiency and pollution reduction could drive demand in your area.
There are no stupid questions when you are poised to purchase a business; inquiring curtails potential risk. Once you’ve found an HVAC business for sale that you’re interested in, ask the seller these questions.
Why are you selling?
First and foremost, be sure to ask the owner, “Why are you selling your HVAC business?” While common reasons could include a desire to pursue new business opportunities, industry burn-out, or retirement, others could raise warning flags. If the seller cites poor performance or financial issues, you’ll want to investigate further.
What is included in the sale?
HVAC businesses can be complicated. From personnel to machinery, the business is bound to have many facets. Make sure to review the company’s assets and determine their worth before going to the bargaining table. Assets like equipment, vehicles, and customer inventories may be worth more to you than others.
How did you arrive at your asking price?
Even if the price is within your estimations, ask what they based their number on. Sellers will use arbitrary factors to calculate their asking price, like how much money they will need to move on. Make sure they show quantitative information detailing what lead them to their asking price. If the seller cannot provide these details, there may be room for negotiation.
Armed with your newfound information, sit down with a business broker or financial planner to discuss if buying an HVAC business is the right move for you. Consider your finances, professional training, and interest level in the company. Also analyze the cost of government regulations on conservation, recovery, and recycling of materials. Use all of this information to determine whether buying an HVAC business is right for you.
If you’ve concluded that you’re ready to buy an HVAC business, contact Sunbelt Business Brokers to find a professional broker near you. We have years of experience helping entrepreneurs buy commercial, industrial, and residential HVAC businesses. You can count on us to help you find your ideal HVAC opportunity quickly and effectively.