HVAC seller valuations: 6-12x earnings depending on scale

Commentary on PE-driven valuations for HVAC businesses: roughly 6-8x net profit at the $10M level and 10-12x earnings around the $25M range, with peak pricing in 2021.

“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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