What Is an HVAC Business Worth? A Real $2.5M Florida Deal
Most HVAC owners have no idea what their company is worth until they see a real deal broken down. So let's break one down. A 41-year-old HVAC company in Tampa is on the market right now, and the numbers are public — which makes it a perfect teaching case for any Florida home-services owner wondering what their own business would trade for.
The deal, as listed
Here is what the seller is putting in front of buyers. Every figure below is as presented in the public listing — not verified, not audited, which is itself part of the lesson.
| Metric | As listed |
|---|---|
| Asking price | $2,500,000 |
| Gross revenue | $4,300,000 |
| EBITDA | $620,000 |
| Cash flow (SDE) | Not disclosed |
| Established | 1985 |
| Debt | None |
| Inventory, parts & equipment included | ~$250,000 |
The three ratios every seller should know
Owners routinely mix these up, and mixing them up is how you end up with the wrong idea of what your business is worth. All three come from the same numbers — what changes is the denominator.
| Ratio | Formula | This deal |
|---|---|---|
| EBITDA margin | EBITDA ÷ revenue | $620,000 ÷ $4,300,000 = 14.4% |
| Multiple | Price ÷ earnings | $2,500,000 ÷ $620,000 = 4.0x |
| Yield | Earnings ÷ price | $620,000 ÷ $2,500,000 = 24.8% |
A 14.4% EBITDA margin is respectable for a residential-heavy HVAC contractor. And 4x EBITDA is a defensible ask in a market where private equity has been consolidating home-services companies aggressively. On the headline numbers, this is a fairly priced business.
The number that isn't there
The listing shows EBITDA. It does not show SDE — seller's discretionary earnings — and that omission matters more than anything printed on the page.
On an owner-operated business, SDE should be the larger number. It is EBITDA plus the owner's compensation, plus benefits, plus the personal expenses running through the company. If a seller publishes the smaller figure and withholds the larger one, there is usually a reason worth understanding.
The most common explanation is owner dependence. Once you add back what the owner pays themselves, you also have to ask what it costs to replace them. If the owner is the estimator, the top salesperson, and the relationship with every major builder, then a buyer isn't purchasing a company — they're purchasing a job. That distinction is worth a full turn on the multiple, sometimes more.
What we would ask before discussing price
- What is the actual SDE, and what are the add-backs? Defensible add-backs raise value. Aggressive ones cost credibility on every other number in the file.
- How many hours does the owner work, and doing what? This determines whether you are valuing on SDE or EBITDA — and that choice moves the price materially.
- What is the revenue mix? Service contracts and recurring maintenance are worth considerably more than one-off replacement jobs.
- Customer concentration. One builder relationship at 30% of revenue is the fastest way to lose a turn on the multiple.
- Does the $250,000 of included equipment hold its stated value? Included is not the same as worth.
What this means for your business
If you own an HVAC, plumbing, roofing, or landscaping company in Florida, the lesson here has nothing to do with this particular listing. It is that buyers form an opinion in about ninety seconds, from three numbers — your earnings, the shape of your revenue, and how much of the business walks out the door when you do.
The good news is that all three are improvable, and the highest-return work usually happens twelve to twenty-four months before a sale, not during it.
Frequently Asked Questions
What multiple do HVAC businesses sell for in Florida?
It depends heavily on size and owner dependence. Smaller owner-operated shops typically transact on a multiple of SDE, while larger companies with real management depth trade on EBITDA — and command higher multiples because a buyer is acquiring an operating business rather than a job. Consolidation activity in home services has supported pricing for well-run companies with clean books.
What is the difference between SDE and EBITDA?
The practical difference is owner compensation. SDE adds the owner's salary and discretionary expenses back into earnings; EBITDA treats management compensation as a real, ongoing cost. The split isn't about company size — it's about whether the business needs the owner to function.
Why would a seller not disclose SDE?
Sometimes it's simply how the broker built the listing. Sometimes the owner's compensation is doing more work in the numbers than they want to advertise up front. It isn't automatically a red flag, but it is always the first question to ask.
Does included equipment increase what a business is worth?
Usually less than owners expect. In most transactions the equipment needed to operate is assumed to be included, and value is driven by earnings. Equipment matters most when it is genuinely surplus, recently purchased, or unusually capital-intensive.
How do I find out what my business is actually worth?
Start with a broker's opinion of value from someone who sells companies in your industry and market. We provide these at no cost and with no obligation to list.
Thinking about selling your Florida business in the next few years? We'll tell you what it would realistically trade for today, what's holding the number down, and what to fix before you go to market. No cost, no obligation. Request a free valuation.