HVAC Business Valuation Multiples 2025: What Buyers Are Paying
HVAC companies are commanding 2.5x–5.0x SDE in today's market. Here's exactly what's driving those multiples up — and what's dragging them down.
Read Article →Valuation BenchmarksMay 2025 · 5 min read
HVAC Business Valuation in Nebraska: Omaha Market Data 2025
Nebraska HVAC businesses benefit from Omaha's strong financial services and technology sector, extreme continental climate, and Nebraska's declining income tax rate heading toward a flat 3.99% by 2027.
JT
Jason Taken
HedgeStone Business Advisors
Omaha is a more significant commercial market than its Midwestern profile suggests — Berkshire Hathaway, Union Pacific, ConAgra, and Mutual of Omaha all headquarter there, driving strong commercial HVAC demand from financial services and food production facilities. Nebraska's climate is among the most extreme in the continental U.S. — summers above 95°F and winters with regular blizzards create year-round HVAC stress that drives strong maintenance agreement adoption. Nebraska's top income tax rate is declining through a phased reduction toward 3.99% by 2027.
Nebraska HVAC Multiples
Nebraska HVAC businesses sell for 2.5x–4.5x SDE. Omaha metro (Douglas County and suburban Sarpy County — Papillion, La Vista, Bellevue) commands the strongest multiples — Offutt Air Force Base (Bellevue) provides military base HVAC contracts, Sarpy County's rapid residential growth provides strong new service demand, and Omaha's financial services sector drives commercial office HVAC. Lincoln (Lancaster County) is the second market with University of Nebraska institutional accounts, state government buildings, and solid residential suburban demand in Southwest Lincoln.
Omaha's Financial Services HVAC Market
Omaha houses an extraordinary concentration of financial services and insurance companies relative to its population. Berkshire Hathaway's headquarters and affiliated companies, Mutual of Omaha, FBL Financial, and major data center operations require high-reliability commercial HVAC: precision cooling for server rooms, redundant HVAC systems for financial operations centers, and sophisticated building automation for Class A office space. HVAC businesses with data center and financial services commercial contracts command EBITDA multiples on those revenue streams. Omaha's data center market has grown significantly alongside major cloud provider infrastructure investments.
Extreme Continental Climate
Nebraska experiences some of the most extreme temperature swings in the country — Omaha averages July highs of 88°F with high humidity, and January lows of 12°F with windchill values regularly below -20°F. This extreme range drives both cooling and heating demand at the highest levels. Maintenance agreement adoption in Nebraska is strong — homeowners experience equipment failure risk on both extremes and are motivated to protect HVAC systems. HVAC businesses in Omaha with maintenance programs representing 20%+ of revenue command upper-range SDE multiples of 3.5x–4.5x.
Nebraska's Declining Tax Rate
Nebraska has enacted a phased income tax reduction: the top rate has been declining from 6.84% toward a target of 3.99% by 2027. The current 2025 top rate is approximately 5.84%. On a $2M HVAC exit at 5.84%, a Nebraska seller pays $116,800 in state income taxes — significant, but declining. By 2027, the same exit will cost $79,800 in state taxes — a $37,000 improvement. Nebraska HVAC owners who can time their exit toward the 3.99% target rate benefit from substantial tax savings. Work with a CPA to model the exit timing benefit — the difference between selling in 2025 versus 2027 is material.
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