Redwood CFO: scaled HVAC contractors command 8-9x+ earnings vs 2-3x for small plumbing/electrical

Redwood Services CFO Shaun Hardick describes acquisition valuation multiples, noting scaled HVAC contractors command eight or nine-plus times earnings while small plumbing/electrical businesses can be bought for two to three times earnings.

“You can generally buy or partner with those types of businesses for somewhere between two and three times their earnings. Don't get me wrong, that's always a lot of money. But it's way less than the eight or nineplus times that scaled HVAC contractors command.”

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