In the last three months, it appears that heating and air companies of various sizes are selling across the state. As you can see by the average at the bottom of the page, they have sold for just under 2 times net income. What is interesting is if you look at the largest one sold, it had the highest multiple. Yet, if you look at the second highest it has the lowest multiple.
As I have mentioned many times there are quite a few things that impact selling price, and you should not just look at what is for sale and/or what has sold to determine the value on your company or what you should expect to pay if you were looking to buy a company.
if you look deeper in the numbers, you will see that the sale with the lowest multiple was also on the market the longest, almost a year. What could cause this? Poor books and records? Limited staff? Bad service area? High percentage of new construction?
There are many reasons of why a company sells where it does price wise. If you are considering selling your business, I would strongly suggest you speak with a competent professional who is experienced in selling heating and air companies.