How a Commercial HVAC Firm Hit 22x EBITDA with Service Contracts

Lucas and Luna break down how a mid-sized commercial HVAC company in Phoenix sold for 22x EBITDA by shifting from reactive repair to recurring preventive maintenance contracts. The episode walks through the three-year transformation: how the owner replaced 80% of revenue with monthly agreements, hired a dedicated salesperson for contracts, and retained 94% of customers annually. They also discuss why buyers — especially private equity roll-ups — are willing to pay a 50% premium for recurring revenue in trades like HVAC, plumbing, and electrical. Specific numbers, contract structures, and a real-world example of why predictable cash flow changes valuation. #HVACBusiness #CommercialHVAC #RecurringRevenue #BusinessValuation #EBITDAMultiple #ServiceContracts #MaintenanceRevenue #BusinessBrokers #SellingABusiness #PrivateEquity #PhoenixBusiness #TradesBusiness #BusinessExit #FexingoBusiness #BusinessPodcast #BuyerAndSeller #BusinessFinance #ValuationMultiple Keep every episode free: buymeacoffee.com/fexingo