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 BenchmarksApril 2025 · 5 min read
HVAC Business Valuation in Ohio: 2025 Market Data
Ohio HVAC businesses benefit from a four-season climate driving consistent heating and cooling demand, solid buyer activity in Columbus and Cleveland, and moderate state taxes.
JT
Jason Taken
HedgeStone Business Advisors
Ohio is a solid, steady market for HVAC business exits. The four-season climate creates consistent demand for both heating and cooling services, and Ohio's three major metros — Columbus, Cleveland, and Cincinnati — each have active buyer markets for quality HVAC businesses.
Ohio HVAC Multiples
Ohio HVAC businesses sell for 2.5x–4.5x SDE. Columbus is the strongest market — consistent population growth, active PE buyer presence, and strong residential service demand. Cleveland and Cincinnati have solid markets with established buyer pools of regional operators and strategic acquirers. Smaller Ohio markets sell primarily to individual/SBA buyers at 2.5x–3.5x SDE. Businesses with maintenance agreements making up 40%+ of revenue trade at the high end regardless of market.
Four-Season Climate: Heating AND Cooling Revenue
Ohio's continental climate creates a true four-season HVAC business — not just cooling like Sunbelt markets. Ohio HVAC companies with both heating and cooling maintenance agreement programs have the most balanced revenue profile. Maintenance agreements for both furnaces (fall/winter) and air conditioners (spring/summer) create multiple annual touchpoints with customers and higher renewal probability. Buyers pay premiums for businesses with documented dual-season maintenance programs.
Ohio Tax Considerations
Ohio has a graduated income tax with a top marginal rate of 3.99% — among the lower state rates in the Midwest. Combined with federal capital gains, Ohio sellers pay approximately 28% effective rate. Ohio has no local income tax on business sale proceeds (municipalities tax wages, not capital gains). This moderate tax environment makes Ohio exit math favorable compared to higher-tax neighboring states.
PE Activity in Ohio HVAC
Multiple PE-backed HVAC platforms have Ohio as an acquisition target. Columbus specifically has seen growing PE interest — several PE-backed platforms are building Central Ohio coverage. Cleveland and Cincinnati are secondary targets. Ohio businesses with $500K+ EBITDA and recurring maintenance revenue can attract PE competition alongside individual and strategic buyers.
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