Six reasons why consolidation can be an excellent idea in the HVAC industry

Mordecai Gal: HVAC industry mergers and acquisitions specialist? The HVAC and M&A market is already very big, with a value of $25.6 billion in the United States alone. Growth in the HVAC industry could make your business more profitable but brings challenges when negotiating mergers and acquisitions. The HVAC industry is expanding thanks to growing demand for contractors who handle heating and air conditioning installations, repairs, and maintenance all over the country. This news is positive if you already own an HVAC company because you could see your organization get far busier and more valuable in the coming years.

While the COVID-19 pandemic temporarily interrupted much of this construction, and high lumber prices could slow it down in the short term, the fundamentals are the same. We should see a resurgence from any disruption once normalcy returns. Next, there’s greater demand for energy-efficient furnaces and air conditioners, leading to homeowners replacing their existing units. Many states are offering tax credits when homeowners upgrade these systems, as well. It’s worth noting that these tax schemes aren’t permanent, but the desire for energy-efficient HVAC systems should remain indefinitely. Finally, there are the maintenance and replacement cycles of these appliances. Nearly every home in the country has a furnace, and about 75% of them have an air conditioning unit. Studies suggest that almost $14 billion is spent on HVAC repairs annually and that about $3 million in systems are replaced every year.

If you want a successful M&A deal, you should always work with the right team. Sometimes business owners think they can do it alone and end up making mistakes along the way. Professional deal makers can create the exact leverage you need to reach a successful deal. It is in your interest to have a deal maker by your side as the other side will also have a team of professionals. As Mordechai Gal, operations director at AccessHeat Inc, puts it “Your business should always have proper financial records, especially when you want to exit. It is important that you understand working capital, as it will impact the deal. Have a thorough understanding of how things flow in several accounting statements, such as a profit and loss. You should also have a good idea of your balance sheet when walking into an M&A deal.”

Thinking of putting your HVAC business up for sale? After spending years building your business, you are finally ready to reap the reward of all your hard work. You put in countless hours and the time has come to move on. Your HVAC business can be a very valuable asset if you position it properly before listing it. When selling your HVAC company, you want to get the best market value for your asset. You want to make the best deal and maximize your investment.

Running an HVAC business is one thing, but selling it requires a different level of expertise. There are many things to consider – pricing, valuation, marketing, finding the right buyer, and more. As the owner, you’ll naturally have a bias toward your company. This could impair your ability to make the best decisions when selling your HVAC business. Making a mistake or error in judgment could cost you significant revenue at this very important time in your business. That’s why is very important to work with a HVAC M&A specialized aquisition firm.

Pandemic fatigue is a significant issue, too, so we could also see business owners who were thinking of selling in the next five years or so bump up their retirement plans. The stress of running a business during the pandemic was enough for many HVAC and plumbing business owners, pushing them towards the negotiating table in 2021.

There have been hundreds of HVAC mergers & acquisitions over the past few years, and the trend is continuing to grow as time passes. As a result of this changing tide, https://www.access-heat.com/ has identified an opportunity that benefits all parties involved. Investors and business owners alike are finding that strength in numbers, and a blending of skills has made it possible to fill gaps within businesses and build a more solid bridge to success. Small companies with different redeeming qualities have joined together to become powerhouses in the HVAC world and weave their talents together. With an abundance of capital, many investors like us are eager to help these companies grow exponentially. We are uniquely positioned to put our working capital into the market so that you can plan the successful exit you always envisioned.