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Why Some Shops Sell Big (and Others Don’t)
Secrets from an expert broker
Jack Carr
October 06, 2025
Welcome to the JackQuisitions newsletter,
Some shops sell for a lot. Other shops sell for a lot LESS.
Today, I’ve got a few secrets for you from a broker who has sold 150+ HVAC businesses.
Find Acquisition Targets the Simple Way
Want first crack at HVAC, plumbing, and electrical businesses for sale?
Here’s the way I think about it: the best trades deals disappear fast, so you want to get notified the instant they hit the market.
In addition to new deals, signing up allows you to:
✅ Get a complimentary deal review
✅ Access exclusive off-market opportunities
Join the list here before the next deal drops. It could be the difference between making a deal and finding yourself stuck and searching for answers.
Ready For Your Next Acquisition?
Check out these acquisition opportunities that caught my eye this week:
This $401K revenue residential HVAC company in Orange County, CA generates $66K in cash flow with 85% residential service, flat rate pricing, and Lennox dealer status, offered at $150K.
This $9.8M revenue commercial HVAC contractor in Virginia averages $960K EBITDA with a strong reputation, design-build capabilities, and consistent growth since 2017, offered at $6.4M.
This $863K revenue HVAC company in Hampden County, MA generates $339K in cash flow with 2,000 active customers, 27 changeouts in the past year, and a 60/40 residential-commercial mix, offered at $825K.
Avoid a $2M Disappointment
Patrick Lange has brokered nearly 150 HVAC and plumbing company transactions. He’s seen the difference between a $5–8M exit and a $2M disappointment more times than anyone else in the industry.
And the difference isn’t luck. It comes down to how the business is run.
Where Shops Get Stuck
At around $1M in revenue, many companies stall out. Why? The owner is still doing everything.
They run the sales calls.
They answer the phones.
They’re on every job site.
Patrick calls it perfectionism. Owners don’t believe anyone can do the work as well as they can, so they hold onto every role. That makes the business completely dependent on one person. And when that happens, buyers walk away.
Every company he’s seen stuck at $1M has the same problem: the owner is the bottleneck.
What Buyers Don’t Want
Even when revenue grows, the wrong mix kills value. Here are some examples:
Heavy construction work makes banks and buyers nervous, especially when it’s 70% of the business.
Companies that “do everything” (residential, commercial, boilers, chillers, hydronics, refrigeration, electrical) are spread too thin. Finding technicians who can handle all of that is nearly impossible.
Books loaded with add-backs don’t hold up. Buyers want clean tax returns, not spreadsheets where college tuition is buried under cost of goods sold.
Patrick sees it all the time: sellers hear about “20x multiples” at trade shows, but the truth is those stories leave out details like rolled equity, financing contingencies, and the fact that it was a $50M company with the owner long gone.
The result is smaller operators setting their expectations on myths, not reality.
What Buyers Will Pay For
The shops that earn strong multiples look completely different. They’re structured like businesses, not jobs. Here’s how:
Owner involvement is low. The business runs on systems, not one person’s shoulders.
The bulk of revenue comes from service, repair, and replacement, not construction.
Records are clean and transparent. A buyer can look at tax returns and see the profit clearly.
The company isn’t trying to be everything to everyone. It focuses on the core services buyers want.
Repeatable systems are in place so new people can step in and keep things running.
Patrick summed it up clearly: if the ultimate goal is to sell, you have to show profit and make the business repeatable.
Lessons for Operators
If you’re building or buying, ask yourself:
Am I the bottleneck in my own business?
Would a buyer need to replace me as tech, CSR, sales, and GM on day one?
Is my revenue mix construction-heavy, or service/repair/replacement focused?
Are my books clean enough that I can hand over tax returns without explanation?
Am I running one focused company or six different businesses under the same name?
Final Thought
The difference between a 2x exit and an 8x exit isn’t the market. It’s how you run the business.
Buyers don’t pay for perfectionist owners or creative accounting. They pay for systems, profit, and repeatability.
If you want your shop to sell for real money, build it to run without you.
Need Financing? Alan Has You Covered
Looking to buy or grow a business? Is a lack of liquid funds holding you back?
Alan Peterson of First Internet Bank, a National Preferred SBA lender, can show you the way.
Whether you're buying your first company or scaling through acquisition, Alan's “how can we” mindset and hands-on approach make him the go-to lender in the skilled trades space.
Finance up to 90% of your deal
Get a complimentary deal review and buyside prequal
Reduced good faith deposit when you mention the show
Tell Me What You’re Thinking
The steps you take today will determine how much you can sell your business for down the road. Keep that in the back of your mind at all times.
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Disclosure: Some of the content and links in this newsletter are sponsored or affiliate links, which means we may receive payment or earn a commission if you click through or purchase. However, all opinions expressed are entirely my own.
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