How to Market and Sell an HVAC Business

We have several articles on how to sell a business, and in this article we apply many of our business selling principles to a specific type of business; selling an HVAC business. Trades businesses are just as much relational as they are transactional. You’re both selling products with warranties, as well as warrantying your workmanship. If messaging around the sale is sub-optimal it can lead to concern over the longterm stability or honoring of past warrantied work for existing customers, which can impact revenue at a crucial point of the transaction.

Why confidentiality is crucial in selling your HVAC business

Confidentiality is extremely crucial when selling your HVAC business for the following reasons:

• You want to sell your business for a fair price, so you don’t want other people in the market knowing your numbers and what you sell for
• HVAC businesses have a lot of specialized knowledge that can be difficult to transfer to a new owner
• To maximize the deal when selling your HVAC business, the last thing you want is for a customer to have concerns over future service they might receive, it can impact your revenue, and lead to a lower valuation of your business at a crucial point.

How to market an HVAC business for sale

As with any sellable business, your objective is to gain the interest of an appropriate buyer. HVAC is a highly-specialized industry, and while wasting time and resources marketing to the wrong audience is a poor decision, ultimately selling to the wrong buyer who doesn’t have a solid understanding of the industry or operation of an HVAC business is much worse for the brand and customers. If not for any other reason, laser-targeted marketing should be enough to engage a business broker with experience marketing and selling trades businesses.

When working with a business broker, you’ll receive key benefits that will help you more efficiently find the right buyer and maximize your deal. Benefits of engaging a broker include:

• Valuation – a deep understanding of what adds value to a business, and any seasonality to make better financial forecasting to aid in the valuation
• Discreet Marketing – Developing the right marketing plan to draw appropriate buyers, whilst protecting the privacy of the sale to ensure the financial and operational health of the business through the transaction.
• Qualifying Potential Buyers – Ensuring the prospective buyers are equipped both financially and experientially to take on the business, including a solid transition plan.
• Deal Closing – The broker will join you at the closing to guide the transaction and catch any points of risk before they become a snare during the deal.

After reading this overview, you may still have questions on whether it’s time, what your business is worth, or where to begin. Our business advisors are available to schedule a free confidential consultation to discuss your business and a potential sale.