GM role in HVAC firm: Scale retrofit division, maintain luxury segment, grow service, and optimize operations.

THE PORTFOLIO COMPANY

The portfolio company is a residential mechanical contractor specializing in HVAC services. Founded 20 years ago by industry professionals from engineering and finance backgrounds, the company has grown from a small team to 33 employees. Recently acquired, the company is pivoting towards a retrofit-based business while maintaining a significant portion of its custom home projects.

The company operates two primary brands:

• A luxury home HVAC services division serving high-net-worth clients.
• A retrofit services division, aiming for significant expansion under new leadership.

Currently, the company generates $7M in revenue, with an additional $1.5M from a recent tuck-in acquisition. The 2025 revenue target is $9.5M, with a projected EBITDA growth from $2.5M to $3M.

The business consists of:

• 5% Service – Needs substantial growth.
• 50% Retrofit – Expected to become the majority focus under new leadership.
• 50% Custom Homes – The existing profit engine.

Expansion into plumbing and electrical tuck-ins is also under consideration.

THE PRIVATE EQUITY FIRM

The private equity firm backing this business is committed to scaling operations and increasing profitability. They provide strategic guidance, capital investment, and a long-term vision to ensure sustained growth.

THE CULTURE

The company has an independent and experienced team with long-standing technicians. They emphasize maintaining a strong culture while scaling up the workforce to support growth. The founders will transition into sales-focused roles and eventually phase out. The new GM will have significant autonomy to lead the business, particularly in expanding the retrofit division.

VISION

What does success look like in this role?

·        Grow the retrofit division to become the primary revenue source.

·        Maintain the luxury home market presence while leveraging it for retrofit growth.

·        Expand the service department to increase recurring revenue.

·        Implement management structures to optimize operations and team efficiency.

THE ROLE

The day-to-day role for this position will include the following tasks:

·        Leading and managing the entire business.

·        Hands-on involvement in operations, particularly in the luxury home and retrofit markets.

·        Structuring the company into two distinct business units (luxury and retrofit).

·        Growing the retrofit segment into a dominant part of the business.

·        Hiring and building a strong team to support expansion.

KEY SELLING POINTS OF THE ROLE

·        Growth opportunity: The GM will have full autonomy to scale the business.

·        Established, profitable business: Not a turnaround situation.

·        Strategic influence: Freedom to shape the company’s future direction.

KEY CHALLENGES FOR THE ROLE

·        Maintaining the luxury home segment while aggressively growing the retrofit business.

·        Managing potential cultural differences between teams.

·        Establishing a management hierarchy for smoother operations.

YOUR BACKGROUND

The successful individual will be able to demonstrate experience in the following:

·        Experience in HVAC retrofit business.

·        Proven ability to grow a large service department.

·        HVAC and plumbing expertise (preferred).

·        Experience in scaling residential mechanical services businesses.

YOUR CHARACTERISTICS

The successful individual will display the following characteristics:

• Hands-on leadership style – willing to get involved in day-to-day operations.
• Strong work ethic – prepared to work hard and drive growth.
• Strategic mindset – ability to scale a business while maintaining profitability.

LOCATION

https://www.unbiased.com/discover/banking/what-is-the-cost-of-living-in-california

COMPENSATION PACKAGE

Basic Salary: $175,000 – $200,000

Bonus Package: Yes, flexible for the right person

401k: Yes

Healthcare: Yes

Raw Selection is an executive search firm working exclusively with Private Equity firms and their portfolio companies across Europe & North America.

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