Why Now is a Great Time to Sell Your California HVAC Business
The state of California is a great place to live. There are diverse climates, from the mountains to the beach, and from the agricultural areas of the Central Valley to the mild year-round climates of Southern California. As a result, HVAC needs are diverse as well and many HVAC businesses are set for acquisition in Northern California.
Where one area might be more reliant on air conditioning in hotter months, others require more heating in cooler months, and still, others require both, or homes and businesses can be fitted with more efficient heat pumps rather than central heat and air conditioning.
Whatever area of California your company is in, the industry is a healthy one, and now is a great time to sell your business, whether you’re ready to retire or just move on to another type of business. Here are some reasons why the market is right for selling your business.
The Effects of Climate Change and HVAC Needs
If the recent drought in California tells us one thing, it’s that climate change is having an impact on our state. Areas that were once cooler and more temperate are experiencing higher temperatures more often. The opposite is true in some areas as well.
This means that older HVAC systems that were once adequate for a given area need to be updated or replaced. This is a golden opportunity for HVAC businesses to thrive.
Thriving businesses are more attractive to buyers, who want to recoup their return on investment as quickly as possible. If your business is healthy and growing, it is much more likely to sell quickly, and it’s worth more too.
Replacement of Aging Systems
Besides climate change, there are systems that are aging and no longer as efficient or useful as they once were. Homeowners and those purchasing new homes are interested in replacing these systems before they fail. This means some great opportunities for you and your business to grow and thrive.
This is good news for the industry overall, but it also makes your business more appealing to buyers. They want to know that not only is your business healthy and growing, but your industry has great potential as well.
This is why it is important when selling your California HVAC business that you know the trends in your local area, and that you are well-versed in your competition and the overall landscape of the industry. You’re Certified Business Broker can help you get a handle on this and present it to your potential buyer in the best way possible.
Consumers Going Green and Your California HVAC Business
What’s another reason the HVAC business is growing? Because consumers are replacing older systems that are more environmentally responsible and efficient. Not only is this great for the environment, but it’s also a way for them to save on their heating and cooling bills.
What are consumers looking for? Systems that are connected or compatible with smart home controls and intelligent thermostats are vital. Once the complex building and home climate management systems can now be monitored and altered from a smartphone or tablet.
Newer systems are also easier to maintain. Connected devices can warn homeowners of potential issues before they occur and can even be accessed by technicians for faster diagnosis and more precise repairs and maintenance.
Systems that are solar compatible, especially in new construction, are in high demand as well. This makes the purchase of an HVAC company, especially one up to date on new technology and methods, quite appealing to business buyers in California.
New Commercial and Residential Construction
According to First Research, the HVAC industry is poised for growth in large part due to new construction and development. Demand is not only rising worldwide, but it is healthy in California as well. From production and manufacturing facilities in Silicon Valley to agricultural packaging and distribution centers in the Central Valley, the California industry is strong and growing.
While new home construction is slowing in California, the remodeling of older homes often demands HVAC updates. And while not growing as fast as it once was, new construction is still occurring in many areas of California, offering ample opportunities for growth and maintaining a healthy HVAC business.
Challenges to Finding a Qualified HVAC Buyer
While it is a great time to sell your HVAC business in California, there are challenges in finding a qualified buyer. Here are a few for you to consider.
Your buyer must have a contractor’s license and be able to get any other licenses and permits they might need. Ideally, they will already have these.
Your buyer should be familiar with tax law and other business challenges in California. You don’t want the deal to fall through because they didn’t know some common financial issues going in.
Your buyer should be able to obtain financing if needed. This is important to determine early, and you should also decide early if you will carry any of the financings if necessary to close the deal.
Your buyer should be aware of the escrow policy in California, and what that means for the time it will take to buy a business.
All these details can intimidate buyers and affect the business deal. This is where a business broker comes in. While you run your business, the business broker will help make sure your business is ready to sell, and vet potential buyers for these qualifications.
Are you ready to sell your California HVAC business? Call or contact Andrew Rogerson at Rogerson Business Services today! He’ll help walk you through the process, from a business valuation that helps you get the right price for your business to assisting you with the escrow process and closing the deal, he has the experience you’re looking for. Andrew has also successfully sold a number of HVAC businesses in California, and he can help you sell yours too.
This is part of the tips to sell a construction company in California series ->