HVAC Business Valuation Multiples

Current valuation multiples for HVAC businesses are discussed: a $10M business netting $1-1.5M can expect 6-8x net profit, while a $25M business with similar margins can expect 10-12x earnings. Premium values are given for 50% gross margins.

“If you have a $10 million business that nets $1-1.5 million, you are looking at six to eight times your net profit. The next major hurdle is the $25 million range with a similar profit percentage. For those businesses, you can expect about 10-12 times earnings.”

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