When you start to consider selling your HVAC company you will notice some large differences in sales prices on various size companies. One of the items that give a buyer a good feeling, and can often lead to a higher sales price is the number of Maintenance Agreements you have in place with your existing customers.
There are multiple reasons for this increase in value, or at least perceived value from buyers. One of the primary reasons, is the appearance of a loyal customer base. As you implemented putting agreements in place with your business, I am sure you noticed your overall sales volume has increased from these “loyal customers”. Studies have shown that customers with Maintenance Agreements were less likely to shop around when faced with a major purchase or upgrade, compared to those who were one time or casual customers.
You should have also noticed an increase in referrals from customers who you work with on a more consistent basis. As a buyer who is looking to not only purchase a profitable business, but one that shows consistent growth, referrals from existing customers will play a big part in that growth plan.
I am sure one of the reasons that helped you decide to create a Maintenance Agreement system in your business or has you considering to implement this strategy, was the consistency in income it creates during slower times. As a buyer considering acquisition in the industry, consistent income is highly sought after as often times they have debt service from the purchase they will need to account for.
What if you do not currently have a plan in place with customer agreements? Do not panic, it does not have to be complex. No matter how simple of a plan you have, it still ads value to the sale of your business as long as you have something in place. Not sure what the best way to get started implementing a service agreement strategy into your business, and you do not want to try it on your own? There are several companies that can provide templates for you to implement in your business that are used by other companies if you prefer not to implement something on your own.
Still on the fence about putting agreements in place? Here is a great article in ACHR News that explaines many of the benefits in addition to a higher sales price. https://www.achrnews.com/articles/126647-marketing-magic-what-will-maintenance-agreements-do-for-my-company?v=preview
Bottom line, one of the fastest ways to increase the sales price of your business, is to implement a Maintenance Agreement System that focuses on taking consistent care of your customers, while building loyalty and a predictable revenue stream.