Over the years, the brokers at Harvest Business Advisors have sold multiple HVAC, Mechanical, Plumbing, and Electrical Contractors.
From those sales, we have learned that sales price for HVAC contractor businesses can be increased by:
- Focusing on Service Work – Providing HVAC, mechanical, plumbing, or electrical service work. Doing a good job on service work usually means that sooner or later you will get another call. Service work businesses tends to be consistently repeating and thus, has more value than a firm that focuses on only new construction.
- Offering Service Contracts – guaranteed opportunities to work with the client and possibly up-sell. Simple marketing (stickers on the units) and customer service are essential.
- Keep Growing – Like all businesses, you are selling your profits (and the potential of profits for the buyer). Demonstrating strong gross margins and consistent growth count too.
- Upgrade Equipment (to a point) – Find the sweet spot with upgrading equipment. Over investing reduces profit which is the basis of your sale. But if all trucks 300,000 miles on them and other equipment is 15 years old, buyers will notice and the selling price will be reduced.
- Hire a Qualified Broker – Running your business is a full-time job. Selling your business is a full-time job. You focus on keeping the profits up and the business humming. We will focus on marketing your business offering, qualifying prospective buyers and creating an “auction” environment for the highest sales price.
The brokers at Harvest Business Advisors would be happy to discuss the process of preparing to sell your business with you. We also encourage you to download our e-book “What’s Your Number? A Contractor’s Guide to Contingency and Succession Planning” which may answer some questions.
Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.