As an industry, HVAC has been around for ages — but how profitable is it as a business?

Well, according to my 10 years and millions of dollars in research… yes

With the right strategies in place, HVAC businesses are so profitable that they’re on track to get some of the highest valuations in the next coming years.

On average, HVAC businesses have historically seen a 3.5-5X EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). However, with the right systems in place, that number can go up 10-13X EBITDA.

Value is everything in HVAC

To get those numbers, you need to create value with your HVAC business, which you can do through:

  • Platform investments that provide scalability and competitive advantages;
  • Strong operating leverage with high capital efficiency;
  • Sustainable and predictable organic growth;
  • Proven track record of successful acquisitions with a robust near-term pipeline;
  • Strong, competitive position in large, growing markets;
  • Management depth with a culture of talent development.

If you’re looking to break into the HVAC industry, keep an eye out for these trends.

After that, see how you can implement them into your business to drive the highest value for your HVAC customers. 


Firstly, many large public companies have launched initiatives to promote environmentally friendly business practices.

Digital Transformation

Secondly, market players will develop technologically advanced and differentiated products that comply with regional regulation norms to gain a competitive edge.

Energy Efficiency

Thirdly, the drive for green buildings and energy has brought attention to antiquated technology in both commercial and residential buildings.


Finally, the COVID-19 pandemic has driven commercial building owners to improve their HVAC systems. In doing so, they protect the health of visitors and attract customers.

For more must-know industry insights, schedule a call to learn about our upcoming HVAC Summit. One of our business advisors will provide the necessary information for optimizing a profitable HVAC business.

Disclosure: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.

We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.

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