Closed transaction · July 2020
K&S Heating and Air
MDR & Associates took K&S Heating and Air, a heating and air company, through to closing in July 2020.
The transaction
- ClosedJuly 2020
- SectorHome services
- TradeHVAC
- LocationGarland, Texas
- BuyerPrivate equity group
- Engagement to closing120 days
- Represented byMDR & Associates
- Todaykandsac.com
The company today, in its own words. HVAC installation, repair, replacement and maintenance for the Dallas-Fort Worth area from Garland, Texas, with employees who have over 100 years of combined heating and air experience.
The sale
How it ran
K&S Heating and Air, a heating and air company in Garland, came to us 120 days before it closed in July 2020. It was sold to a private equity group, 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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Find out what a buyer would pay for it today. A confidential opinion of value from the firm that sold K&S Heating and Air — free, with no obligation, answered the same business day.
Get a free valuation snapshotWhat 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.
The record
More HVAC companies we have sold
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