Multiple Arbitrage and Exit Strategy in HVAC Roll-Ups

PE firms achieve 2-3x EBITDA multiple arbitrage by acquiring platforms at 6-9x and add-ons at 4-6x, then exiting the integrated portfolio at 8-12x after 18-36 months, with additional margin expansion from route density.

“PE platform anchors clear 6.0x-9.0x EBITDA for $3M+ EBITDA targets. Add-on bolt-ons clear 4.0x-6.0x EBITDA. The integrated portfolio exits at 8.0x-12.0x EBITDA after 18-36 month integration. Multiple arbitrage = 2-3x EBITDA delta between acquisition and exit, plus operating-margin expansion from route density.”

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