Whether you plan to sell your HVAC business in a few weeks, months, or years, there are some items you should cross off your task list before listing for sale. HVAC businesses are unique, and there are certain things you can do to make it as attractive as possible before you begin your marketing-to-sell process. Here are five tips for boosting the selling price of your HVAC business: 1. Cultivate a Solid Team for Your HVAC Business Half the battle [...]

Perhaps you’ve heard the term ‘private equity’ thrown around as a buzzword within the HVAC industry, but you’re unsure what it means. What Does Private Equity Mean? A Private Equity (PE) firm invests in businesses by taking controlling stakes and increasing their value to make a meaty profit when they sell. PE firms accumulate a stockpile of independent companies that will eventually sell and make a profit. Why HVAC? PE firms continue to grow, as reported in Forbes Advisor last [...]

"You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself." - Samuel Levenson   In a previous post, I told the story of selling the first business I built. I was 35, burned out, and miserable. I took the first (and only) offer I got, and in the process, left money on the table and put myself at tremendous risk. Here are some more things I did wrong as a seller. [...]

“Experience is merely the name men gave to their mistakes.” ― Oscar Wilde   I was 35 years old when I sold the first business I’d built. I became a broker eventually because I wanted to help other business owners avoid all the mistakes I made.in the process. My first business – the one I thought was my life’s work – was a financial advising practice. I was good at it, and I was proud of how much it had grown. [...]

On July 26, the Fed raised interest rates another .25% after a brief pause. They also signaled that another raise may be coming. The move nudged the federal funds rate to a range of 5.25% to 5.5%, the highest level in 22 years. If you’re thinking about selling your business within the next year, interest rates will have a definite impact on the number of buyers who will be able to offer top dollar for your company. Lenders look at a [...]

This is a good time to review and update your company’s pricing, especially if you’re considering selling the company within the next year or so. No one knows better than you that the cost of everything has gone up: machinery, components, freon, gas, and labor. But many owners are reluctant to raise prices, fearing that they’ll lose long-time customers and become less competitive in the market. Sales may still be strong, but your profitability has probably suffered if you haven’t [...]

In almost every business listing, we add this sentence: “Owner is willing to stay short-term to ensure a smooth transition.”  What does that mean for the seller, and why does it matter to a buyer?  Selling a business isn’t like turning off a light switch. The deal can close in a day, but the business is made up of people who have to make a transition to a new way of thinking and operating. That includes the person selling the business. [...]