Trade and home services
Air conditioning and refrigeration contractors
Wild Rose Advisors advises the owners of HVAC contractors, the most heavily acquired of the home and commercial service trades.
What a buyer pays for
In this trade, value is driven by the share of the work that recurs without being sold again, more than by revenue.
- 01
Service Agreements
Maintenance agreements are the recurring revenue of this trade. Buyers separate agreement revenue from installation revenue and value each very differently. Owners who cannot evidence the split typically receive the blended figure.
- 02
Commercial Mix
Commercial service books typically trade above residential replacement businesses, and the license class a contractor holds determines whether it may take commercial work.
- 03
Technician Bench
In a service business, licensed technicians who remain through a transition are much of what a buyer pays for. Documented compensation, tenure and certifications survive diligence.
The buyers
Platforms backed by private equity operate in many markets under the names of the local firms they acquired. They are the buyers most likely to pay for a contractor that fills a gap in a metro they already serve, and private investors and family offices may offer an owner a partial sale instead.
An owner who has received an approach may bring the offer to Wild Rose Advisors before signing anything. A letter of intent usually carries an exclusivity clause, and once it is signed the seller's leverage is largely gone.
All SectorsThe Practice Serves
- Independent contractors, not platform branches or franchise locations
- A service agreement base alongside installation work
- Contractors licensed for commercial work
Wild Rose Advisors welcomes conversations with the owners of founder-owned companies.
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