What You Need to Know Before Buying an HVAC Business
One of the most longed for systems in a building is a temperature-controlled and air-quality system. Heating, ventilation, and air conditioning (HVAC) systems are used in both commercial and residential buildings. HVAC systems are in high demand year-round. If you are thinking of buying an HVAC business, this is an excellent industry to get into. However, there are some things you should know before making this purchase. Read on to learn what you need to know before buying an HVAC business.
The first step towards buying an HVAC business is researching the industry. You don’t want to go into this business blind. Learn the ins and outs of the market, as well as the details of the market in your specific location. The HVAC business varies based on location. For example, environmental regulations can have an effect on the industry. Different states have different requirements for HVAC companies. New building construction and technological innovation also play a role in the HVAC industry in different locations across the country.
During the researching process, don’t be afraid to ask questions. If you find an HVAC business for sale that you feel is suitable for you, inquire. Ask the owner why they are selling their company. Some answers you can expect to hear are they want to pursue a different opportunity, they are burnt out in the current industry, or they are retiring. If they cite financial issues or poor performance of their business, investigate their company further. These reasons may be red flags.
The next question to ask is, “what is included in the sale?” The HVAC industry can be complicated. Sometimes a sale does not include the machinery the company uses. Ask if equipment, vehicles, and customer inventories are included in the business purchase. Some companies may include these, while others do not. You may have to make additional purchases outside of the business transaction in order to run your HVAC company.
Finally, ask the company how they arrived at their asking price. A seller will likely use arbitrary factors to calculate their asking price. Ask them to show you how they came to their asking price. They likely have documents detailing their financial circumstance. If the seller cannot provide these documents, you may be able to negotiate on a purchase price.
For help in buying an HVAC business, contact Hallmark Business Brokers. We can help you every step along the way. To get in touch with us, call 941-445-4726 today!