At A Glance

 

HOW WE DEFINE HVAC SERVICES

HVAC services companies install, maintain, and repair heating, ventilation, and air conditioning (HVAC) Systems for "residential, commercial, and industrial properties. They ensure indoor climate control, air quality, and energy efficiency through equipment servicing, system upgrades, and preventative maintenance contracts.

WHY PRIVATE EQUITY IS GOING ALL-IN ON HVAC SERVICES

Private equity is aggressively pouring capital into the HVAC sector. Why? Because it's a goldmine of stable cash flow, consolidation opportunities, and easy-to-scale returns. Here's the breakdown:

1. RECURRING REVENUE = PREDICTABLE CASH FLOW

HVAC services generate steady, contracted income through maintenance agreements and service plans. PE firms love businesses where revenue isn't a gamble-it's locked in.

2. A FRAGMENTED MARKET SCREAMING FOR CONSOLIDATION

The HVAC industry is highly fragmented, with small, independent businesses lacking scale. This creates an opportunity for PE firms to complete roll-ups, drive efficiency, and dominate regional and national markets.

3. MULTIPLE ARBITRAGE

USA Private Equity firms are focused on acquiring smaller HVAC Services companies at low valuations (2- 3x EBITDA, typically under $5M EBITDA) and then selling them at higher multiples (5x+ EBITDA once they reach a $20M+ EBITDA).

4. CAPITAL EFFICIENCY & LOWER RISK

Compared to the higher capital intensive requirements software companies, HVAC Services businesses require less upfront capital due to lower multiples and offer faster return on investment with lower capital entry, meaning PE firms can scale with less risk.

5. A PROFESSIONALIZATION PLAY WAITING TO HAPPEN

Many HVAC businesses lack systems, processes, and strong management. PE firms step in and implement structured operations, tech solutions, and professional leadership, driving higher profitability and better exit multiples.

 

Private equity is reshaping the industry by investing in HVAC. HVAC is the perfect target for value creation with recurring revenue, consolidation potential, and easy operational upgrades. Expect PE-backed HVAC giants to emerge rapidly.

THE NUMBERS

Private Equity Backed main platform portfolio companies, not including add-ons:

• The number of HVAC Services main platform portfolio companies residential and commercial: 259
• The number of HVAC Services main platform portfolio companies residential HVAC Services: 153
• The number of HVAC Services main platform portfolio companies residential HVAC Services: 106

Private Equity Backed main platform portfolio companies and add-on acquisitions:

• The number of HVAC Services main platform companies and add-on acquisitions: 639
• The number of HVAC Services main platform and add-on acquisitions with a residential focus: 496
• The number of HVAC services companies and add-on acquisitions with a commercial focus: 177
  *Some of these companies undertake both residential and commercial projects.
  

PROMINENT PLAYERS

The prominent players in the HVAC Services private equity-backed industry.
Residential: Apex Services Partners, TurnPoint Services, American Residential Services, Champions Group, Sila
Commercial: CoolSys, Service Logic, Nexcore, Flow Service Partners, AirX Climate Solutions (ACS)

TOP STATES FOR PE-BACKED PORTFOLIO COMPANIES & ADD-ONS

Residential: Texas, Florida, California
Commercial: Florida, North Carolina, Texas

CASE STUDIES OF COMPLETED SEARCHES

VP of Corporate Development

General Manager

CHECK OUT THE HVAC SERVICES SALARY REPORTS

Link to Salary Reports

GET IN TOUCH

Want to explore your next career step or looking for a strategic hire?
Contact Mohammed.Vali@Raw-Selection.com
Vice President of Commercial & Residential Services

All the insights in this salary report are provided from our proprietary data

Raw Selection | De-Risking Executive Search for Private Equity firms across Europe and North America.