Several unforeseen circumstances may lead an HVAC business owner to face a tough decision. Should you try to sell your business? Or should you close it? To an HVAC business broker, it's a no-brainer. In about 99.9% of cases, you should sell your HVAC business, even if you believe it is not profitable. Why, you ask? Because it has value, and we can help. By closing your business, you're walking away from value. You get nothing. You accept absolute defeat. [...]

Putting up the for sale sign on your HVAC business is no small feat. It is a significant undertaking to transition the ownership of your business and get your ducks in a row in preparation for the sale. In most transactions, the seller is the only one in the company with knowledge of the sale. In addition to running the business, you are handling all of the due diligence requests. Some owners involve key team members to help them through [...]

How exciting! You've received a stellar offer for your HVAC business, and you've already done some negotiating and reached terms that everybody is content with. Now, it's time for due diligence. Business purchase agreements include contingencies and one of those contingencies is sure to be a due diligence clause. A due diligence clause is in place to protect the buyer if any operating or financial details differ from what you revealed in the negotiation process. Documents You Need For Due [...]

Selling your company is almost always an asset sale. So one of the discussions I always have with owners is about understanding and paying off debt when you sell.  Getting your financials in order is part of getting ready to sell, of course, and a buyer must have a clear understanding of any outstanding debt or loans before the final sale price is negotiated. It may be more complex than it seems at first glance. A good example is the [...]

The buyer is not the enemy I’ve written before about what a seller’s responsibility is during the sale. As a broker, my job is to market the business, find a qualified buyer, help the seller navigate and negotiate the process, and keep the deal moving. The seller is responsible for making financial documentation available, responding to questions and issues, and making sure the buyer and their team have everything they need to make a decision and close the deal. But [...]

I’ve gotten several questions on the differences between selling a franchise HVAC business and one that you’ve built yourself. The principles of selling the two kinds of companies are the same, but the pool of buyers will be different. Here’s what you need to know. The key factor in getting full price for your business is getting it in front of as many serious buyers as you can. The only way to truly understand its market value is to get [...]

FOMO (Fear of Missing Out) is alive and well in the HVAC Industry. At every industry trade show, there’s at least one presentation by a guy who sold his business for a 6X multiple. The hardworking owner in the audience thinks: Why not me too? I have a great business. When I talk to owners who are focused on multiples, whether it’s the sale of a competitor in the same market or something they heard somewhere, I try to help [...]

Here’s your Checklist for Selling this Fall If you’re getting close to putting your company on the market, there are some steps you can be taking to increase the value of your business for a potential buyer. Here’s how to make the months before you sell count. Review your books and clean up anything that might concern a buyer. Take personal expenses off the books: vehicles that aren’t for business use; perks and benefits for family members, and other one-off [...]