Closed transaction · June 2020

Graco Heating & Air

MDR & Associates took Graco Heating & Air, a heating and air company, through to closing in June 2020.

Graco Heating & Air logo

The transaction

  • ClosedJune 2020
  • SectorHome services
  • TradeHVAC
  • LocationLewisville, Texas
  • BuyerStrategic buyer
  • Engagement to closing90 days
  • Represented byMDR & Associates
  • Todaygracoac.com

The company today, in its own words. HVAC repair, installation and maintenance in Lewisville and North Texas with over 30 years of service, an Armstrong ProTeam contractor licensed in Texas.

The sale

How it ran

Graco Heating & Air, a heating and air company in Lewisville, came to us 90 days before it closed in June 2020. It was sold to a strategic buyer, found through the same confidential process every company we represent goes through: a blind profile, buyers qualified before they learn the name, and more than one at the table where the company draws them.

What that buyer examined is what any buyer of HVAC companies examines — the factors below, in that order.

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What decided the price

What buyers look at in an HVAC company

Maintenance agreements

The closest thing this trade has to recurring revenue. Buyers ask for the number of active agreements, the renewal rate, and what share of replacement jobs come from those customers.

Replacement against new construction

Residential service and replacement earns a higher margin and repeats. Builder and new-construction work follows the housing cycle, so buyers value it lower.

Who holds the license

A Texas HVAC company operates under an air conditioning and refrigeration contractor license issued by TDLR. If that license is yours personally, the buyer needs a licensed person in place before closing, not after.

The full list, and who the buyers are: Selling an HVAC company in Texas.

Your company

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