 After
years of toiling away, building your HVAC business to be the
best it can be, you’re ready to capitalize on all your hard
work. But selling any business can be overwhelming, no
matter what reason is driving the sale, be it retirement or
a new opportunity.
Nevertheless, when you sell an HVAC business, many aspects
can determine a successful deal.
How to Sell an HVAC Business
Owning an HVAC business is an attractive enterprise. The
Bureau of Labor Statistics (BLS) job outlook of the
industry is a projected 15 percent growth rate over the next
eight years. The BLS points out that the estimated HVAC
industry upturn is much higher than the average for all
occupations. If carried out correctly, the sale should fetch
a fair number of prospective offers.
Follow these five steps from Sunbelt Business Brokers to
ensure that the sale of your HVAC business goes smoothly.
1.Plan Your Exit Strategy
When you’re ready to sell an HVAC business, one of the
first steps to take is to develop an exit strategy. An exit
strategy is a plan that details how you, in your role as the
owner-operator, will leave the company. The goal of the exit
strategy is to assure potential buyers that the HVAC
business will continue to prosper without you.
Consider these questions in the planning process:
•Do your plans for the future—financial or otherwise—depend
on the sale of your HVAC business?
•Will you exit your business immediately or will you stay on
for a determined amount of time during the transition to new
ownership?
•Is the sale going to include retaining the current
employees? If so, how do you ensure job security?
•How will you transfer ownership of the HVAC business?
To avoid complications that could derail or worse,
terminate, the sale, be sure you’ve addressed questions like
these when developing your exit strategy.
2.Organize Your Business’ Books
Next, you’ll need to collect and catalog paperwork
associated with your HVAC business. Prospective buyers will
expect to see details and records of everything from
inventory lists, to tax filings, to contracts, vendors and
more. Unsure where to start? Enlist the help of an
accountant, lawyer, or financial planner to assist in
organizing your legal documents.
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3.Find Out
What Your HVAC Business Is Worth
Prepare your HVAC business for sale by receiving a formal
valuation from an accredited business broker or appraiser. A
business valuation will give you a clear picture of what
your business is actually worth. Often, the emotional
component of business ownership can cloud your judgment when
it comes to how valuable you perceive your business to be.
The best way to determine a fair asking price is to receive
a valuation from an impartial, third-party entity.
4.Address Weaknesses & Improve
Prior to listing your
HVAC business for sale, make sure it is in the best
shape possible to attract interest. Comb through your
business’ daily operations, marketing strategy, pricing
process, and more to detect areas of weakness and commit to
an improvement plan.
Another way to sweeten the deal and solicit more offers is
to highlight services that differentiate your HVAC business
from the competition. Research other HVAC companies in your
area and identify ways you can set yourself apart. This
might include things like:
•Hiring specialized in-house technicians like plumbers or
electricians;
•Implementing recurring, renewable service agreements to
lock in customers and guarantee revenue;
•Offering incentives to customers such as BOGO service
options or referral discounts; or
•Providing continuing education and advanced training for
your employees.
5.Hire a Broker or List Your Business for Sale
Finally, you’ll need to list your HVAC business for sale. If
you want to simplify the selling process, think about hiring
a business broker to handle the nitty-gritty details. But if
you need to list your business for sale by owner, look into
paid online advertising and listing websites.
Professional brokers are your best bet when it comes to
selling an HVAC business. Brokers are industry experts
equipped with an extensive network of interested buyers that
can successfully market your company to bring in a variety
of offers for you to choose from.
If you’re ready to list your
business for sale, Sunbelt Business Brokers can guide
you every step of the way. Depend on Sunbelt to sell your
HVAC business for the best price possible. As the place to
go to buy or sell a business, there is sure to be a
Sunbelt office near you, contact us today!
John Davies
After obtaining his MBA, John began his career at
PriceWaterhouseCoopers, the international accounting and
consulting firm, and subsequently joined Progressive
Corporation, a large U.S. based insurance company. John was
a Division President at Progressive and subsequently became
the CEO of a New York based private equity investment
company. In 2001, he founded MMI as a platform investment
company and MMI has subsequently acquired 15 additional
companies.
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