Step into a rare, cash-flowing HVAC business with 26+ years of market dominance, a bulletproof recurring revenue base, and untapped expansion potential that could double your income in year one.
This is not a fixer-upper – It's a profitable, award-winning operation ready for an ambitious operator to take it to the next level.
Business Overview
Since 1999, this independently owned HVAC business has dominated its Central Valley market with a perfect 50/50 split between commercial and residential clients. The business has built an enviable reputation through decades of reliable service and deep community roots.
The edge: A 5,000-customer database, $180K+ in pre-sold commercial maintenance contracts for next year, and multi-year relationships with anchor clients, including hospitals (13+ years) and schools (25+ years). Voted #1 HVAC Contractor in its market for 5 consecutive years.
Services include installation, maintenance, and repair of package units, split systems, mini splits, coolers, and PTAC units. All systems use modern A2 refrigerants (R32L, R454B), keeping the company ahead of regulations. Customer financing closes more deals.
Key Financial Highlights
- Annual Revenue: $1M+ projected (2025) – up from $850K (2024)
- Cash Flow/SDE: $120K–$150K (15% margins)
- Commercial Contracts: $187K in maintenance + $168K in additional service work
The Gold Mine: Recurring Revenue Streams
This isn't a chase-the-next-job business. The owner spent 10+ years building a systematic maintenance program that generates predictable, year-round cash flow: Quarterly and bi-annual contracts across 78+ commercial units (schools, hospitals, office buildings).
Unlike typical HVAC companies living bid-to-bid, this operation has locked-in, predictable revenue through long-term relationships. A proprietary bidding system built over 27 years delivers quotes in 1–2 days while competitors take weeks.
Operational Details
- Team: 3 skilled full-time technicians, 1 dispatcher, part-time accountant
- Equipment: 3 service trucks, complete tool/parts inventory, modern diagnostics
- Licenses: C-20 (HVAC) + C-38 (Sheet Metal) – transferable
- Facility: 800 sq. ft. office/warehouse + three storage units on month-to-month lease (~$2,500/month)
- Hours: 8 AM–1 PM field service | 1:30 PM–4:30 PM office/bids
- Owner Role: Currently hands-on but could transition to absentee
Massive Expansion Opportunity
Two strategic opportunities are located on the same street:
1. Adjacent Plumbing Company: Established business ($500K–$750K revenue) whose owner has approached this business about an acquisition. Combining customer lists creates a full-service mechanical contractor serving 8,000+ households and businesses.
2. Fabrication Shop: A retired HVAC/refrigeration specialist runs a metal fabrication shop half a block away, currently providing all custom ductwork and sheet metal fabrication. Built-in supply chain and potential partnership/acquisition target.
Imagine: A one-stop shop for HVAC, plumbing, and custom fabrication – all within one city block, serving a database of 8,000+ loyal customers.
Reason for Sale
The owner is retiring after nearly three decades. Health considerations and a well-earned rest are prompting the sale. He wants to hand this to someone who will honor the relationships he's built.
Ideal Buyer Profile
Perfect for:
- Licensed HVAC contractor (C-20) ready to acquire vs. build from scratch
- Ambitious operator with 5–10 years HVAC experience who wants to own
- Hands-on owner comfortable managing a small team and working alongside techs
- Strategic buyer who sees the plumbing/fabrication expansion play
- PE/investor group seeking high-margin service business with recurring revenue
For more information on this profitable and established HVAC business, including detailed financials and operational records, please submit a business inquiry today.
Ad#:2432556