Industry TrendsApril 2025 · 7 min read

HVAC Business Sale Market Update: What's Happening in 2025

Q: Are HVAC businesses selling well in 2025?

Yes — quality HVAC businesses with strong maintenance agreement bases and organized operations are selling at strong multiples. The buyer market remains competitive. PE is more selective than 2021–2022, but strategic buyers and SBA-financed individual buyers are highly active across all business sizes.

Current HVAC M&A market conditions: buyer activity, current multiples, PE deal flow, and what 2025 means for HVAC business sellers.

Jason Taken

HedgeStone Business Advisors

The HVAC M&A market in 2025 remains active despite the higher interest rate environment. PE consolidation continues, though the pace has moderated from the 2021–2022 peak. Quality HVAC businesses are still trading at strong multiples — and strategic buyers have filled some of the gap left by more cautious PE activity.

Current HVAC Multiples in 2025

HVAC SDE multiples are holding at 2.5x–5.0x, with the average transaction around 3.5x. This is stable vs. 2024. Premium businesses with strong maintenance agreement bases (40%+ recurring) are reaching 4.5x–5.5x in competitive processes. PE buyer activity remains focused on platform-level businesses ($500K+ EBITDA), while individual and SBA-financed buyers are most active in the $1M–$3M revenue range.

PE Activity in 2025

PE deal volume in HVAC is slightly below 2022 peaks but still historically elevated. The major platforms (Apex Service Partners, Wrench Group, and 20+ regional PE-backed consolidators) are actively acquiring. Their preference in 2025: businesses that are SDE-positive even after replacing the owner with a market-rate manager, strong maintenance agreements as a percentage of revenue, and geographic markets where they don't yet have coverage.

The Rise of Strategic Buyers

With PE more selective about target quality and size, strategic buyers (other HVAC companies) are filling more of the market. Regional HVAC companies expanding geographically are acquiring businesses in adjacent markets to add routes and customer bases. These strategic deals often close faster than PE transactions (no QoE requirement) and can be particularly competitive when the buyer sees meaningful geographic synergies.

What 2025 Means for HVAC Sellers

If you've been waiting for PE multiples to return to 2021–2022 highs (when some businesses were seeing 6x–7x SDE), that's unlikely in the current rate environment. But the current market — 3.0x–4.5x SDE for quality businesses, with premium deals at 5x+ — is historically strong. Sellers with strong recurring revenue and management depth should move forward. Waiting for a market rebound may mean selling a business with less momentum later.

Frequently Asked Questions

Are HVAC businesses selling well in 2025?

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