Selling an HVAC or air-conditioning business: valuation and process

Why is now a good time to sell an HVAC business?

The HVAC sector in Spain continues to see solid demand. According to the market reports of AFEC (Asociación de Fabricantes de Equipos de Climatización, the Spanish association of HVAC equipment manufacturers), the Spanish HVAC market grew by 18% in 2023, held steady in 2024 (+0.8%) and grew again by 11.4% in 2025, driven by the energy transition, building efficiency regulations and the boom in air-source heat pumps.

For an owner considering a sale, this combination of factors is favourable: demand for the services is sustained, buyers are looking for businesses with recurring revenue and the sector has visible growth in the medium term. Waiting is not always better — cycles change and windows of opportunity close.

The drivers of growth

• European decarbonisation rules: The revised EPBD (Directive (EU) 2024/1275, Energy Performance of Buildings Directive) requires Member States to progressively reduce the energy consumption of the existing building stock.
• Progressive phase-down of fluorinated gases: Regulation (EU) 2024/573 on fluorinated gases (F-Gas Regulation) is driving the replacement of old equipment with technologies that use low-GWP refrigerants.
• Subsidies and Next Generation funds: Energy refurbishment programmes finance the installation of efficient systems, generating a peak in demand.
• Warm climate: summers along the Mediterranean coast sustain demand for air conditioning.

In the Valencian Community (Comunidad Valenciana), these factors are amplified: extreme temperatures, an ageing building stock and tourist activity generate constant demand for the installation and maintenance of HVAC systems.

How much is an HVAC business worth?

The value of an HVAC business depends fundamentally on its normalised profit and on the multiple that applies given its size, structure and quality of revenue. This is an indicative estimate based on Alcara Partners' valuation model:

Multiples by valuation method

Method	Range	Median
SDE (businesses < €1-2M turnover)	2× – 3.5×	2.8×
EBITDA (businesses > €1-2M turnover)	3.5× – 6×	4.5×

Illustrative example

Imagine an HVAC business in Valencia with these characteristics:

• Turnover: €1,200,000
• Normalised EBITDA: €180,000
• 40% of revenue from recurring maintenance contracts
• 8 certified technicians on staff
• Own fleet of 6 vehicles

Applying the median EBITDA multiple (4.5×), the estimated value would be:

€180,000 × 4.5 = €810,000

But if this business has a particularly strong maintenance portfolio (multi-year contracts with owners' associations (comunidades de propietarios), hotels or shopping centres), it could justify a higher multiple — say 5.5× — raising the valuation to €990,000.

What pushes the multiple up?

• A high proportion of recurring revenue (maintenance accounting for a significant share of turnover)
• Certified technicians trained in air-source heat pumps, A2L refrigerants and home automation
• Contracts with major accounts (hotels, shopping centres, public authorities)
• A locally recognised brand and good online reviews
• Modern equipment and a fleet in good condition

What pushes the multiple down?

• Dependence on the owner as lead technician or as the only sales contact
• Revenue mostly from installation (one-off projects, no recurrence)
• Staff without up-to-date certifications
• High staff turnover
• Customer concentration (a single customer accounting for a significant share of turnover)

The value factors that matter most to buyers

Buyers of HVAC businesses value three things above all: maintenance contracts, the technical team and growth potential.

1. Recurring maintenance contracts

This is the most valuable asset of an HVAC business. A maintenance contract generates predictable revenue, usually has high margins and creates an ongoing relationship with the customer that generates cross-selling opportunities (replacements, extensions, repairs).

Buyers analyse:

• Average contract length: Are they annual with automatic renewal? Multi-year?
• Renewal rate: What percentage of customers renew each year?
• Diversification: How many contracts do you have? Are they concentrated in a few customers?
• Profitability per contract: What is the net margin of each maintenance route?

2. A certified technical team

Having a team of certified technicians is a strategic asset. Training a competent HVAC technician takes years. For many buyers — especially those coming from outside the sector — acquiring a business is the only viable way to get an experienced team.

The most valued certifications include:

• Professional licence (carné profesional) for thermal installations under the RITE (Reglamento de Instalaciones Térmicas en los Edificios, Regulation on Thermal Installations in Buildings, Real Decreto 1027/2007)
• Fluorinated gas handling certificate
• Training in air-source heat pumps (aerotermia) and other heat pumps
• Manufacturer certifications (Daikin, Mitsubishi, Carrier, etc.)

3. Equipment and fleet

The condition of the physical assets matters: diagnostic tools, welding equipment, vacuum pumps, leak detectors, equipped workshop vans. A buyer values not having to invest immediately in renewing these assets.

Who buys HVAC businesses?

The buyer profile in the HVAC sector is diverse and active. These are the main types.

Consolidation groups

Technical services companies (multi-service, facility management) looking to grow through acquisitions. They buy smaller businesses to gain scale, extend their geographical coverage and access new segments. They are sophisticated buyers who usually offer structured terms (deferred payment, earn-out).

Private equity

Investment funds may find the HVAC sector attractive: recurring revenue, structural growth, fragmentation (a consolidation opportunity). The typical strategy is buy-and-build: buying a platform company and gradually adding smaller businesses.

Independent technicians who want to scale up

Experienced professionals in the sector who want to make the leap to business owner. They look for businesses with a minimum structure already in place (customer portfolio, employees, vehicles) rather than starting from scratch. They usually pay with a combination of their own funds and bank financing.

Complementary businesses

Electrical, plumbing or solar energy companies that want to broaden their range of services by adding HVAC. Cross-selling between these services creates obvious synergies.

Illustrative example: selling an HVAC business in Valencia

To illustrate the process, let us look at an illustrative example with fictitious data.

ClimaMed (fictitious name) is an HVAC business founded in 2005 in the Valencia metropolitan area. Key data:

• Turnover: €950,000
• SDE: €160,000
• 6 technicians + 1 administrative employee
• 180 active maintenance contracts
• The owner (aged 58) wants to retire within 2-3 years

How the process could unfold:

1. A valuation could give a range of €400,000 – €560,000 (SDE × 2.5-3.5×).
2. A CIM would be prepared highlighting the maintenance portfolio and the stability of the team.
3. If 12 potential buyers were contacted, perhaps 5 would sign an NDA and 3 would submit an offer.
4. Negotiations would be held with the best-placed candidate: for example, a technical services group with a presence in Alicante that wants to expand into Valencia.
5. A possible agreement: €490,000 + an earn-out of €60,000 linked to contract retention over 12 months.
6. The owner would commit to a 6-month transition period.

Hypothetical duration: 9 months from going to market.

Steps to prepare your HVAC business for sale

Preparing the business properly before going to market can significantly increase the final price. These are the most important steps.

1. Formalise your maintenance contracts

If you have maintenance customers "on a handshake", put it in writing. A signed contract is worth much more than a verbal agreement. Include the term, renewal conditions and scope of service.

2. Reduce your dependence

If you are the lead technician or the only one who manages the relationship with the large customers, start delegating. A buyer will pay more for a business that works without you.

3. Update certifications

Make sure all technicians have up-to-date certifications. Invest in training in air-source heat pumps if you do not have it yet — it is one of the most sought-after capabilities.

4. Put the accounts in order

Separate personal expenses from business expenses. Make sure the accounts for the last 3 years faithfully reflect the reality of the business.

5. Document the processes

Create basic operating manuals: how maintenance routes are managed, how installations are quoted, how emergencies are handled.

If you want to explore opportunities in the HVAC sector in the Valencian Community, see our businesses for sale.

Frequently asked questions about selling an HVAC business

How long does it take to sell an HVAC business?

The process usually takes several months from the start of marketing. Well-prepared businesses, with clear accounts and a good maintenance portfolio, tend to sell faster.

Can I sell if I am self-employed (autónomo) and have no company set up?

Yes, it is possible, although it is more complex. The usual approach is to sell the assets of the business (customer portfolio, contracts, equipment, vehicles) or to set up a company before the sale to facilitate the transaction.

What happens to my employees after the sale?

If the shares are sold, the company remains the employer and the employment contracts do not change. If the company, a workplace or an autonomous production unit that keeps its identity is transferred (for example, the business as a going concern in an asset sale), article 44 of the Estatuto de los Trabajadores (Workers' Statute; transfer of undertaking) requires the new owner to take over the existing employment contracts, with their rights and obligations; it is advisable to confirm this with an employment adviser. This is, in fact, an advantage: buyers want to retain the team.

Should I tell my customers about the sale?

Not during the negotiation process. Confidentiality is essential. Customers are informed once the transaction has completed, introducing the new owner positively and guaranteeing continuity of service.

How do pending subsidies affect the sale process?

If you have projects under way funded by subsidies (Next Generation, Plan MOVES, etc.), they must be clearly documented. The buyer needs to know what obligations they are taking on. In general, they are not an obstacle, but they require transparency.

Is it better to sell assets or shares?

It depends on each party's tax situation. If the seller is an individual selling their shares, the capital gain is taxed in the savings base of IRPF (Spanish personal income tax) at rates from 19% to 30% (arts. 66 and 76 of Ley 35/2006); if the company sells its assets, the profit is taxed under Impuesto sobre Sociedades (corporate income tax) and, when distributed, again under the shareholder's IRPF. Buying assets allows the buyer to depreciate what is acquired for tax purposes. Every case has its nuances, so it is advisable to confirm this with a tax adviser; a good adviser structures the transaction so that both parties benefit.

What valuation can I expect if I have no maintenance contracts?

Without recurring revenue, multiples drop to the lower end of the range (SDE 2.0×, EBITDA 3.5× or less). The business is valued more as a flow of projects, which is inherently less predictable. Before selling, it is advisable to build up a maintenance portfolio, even a modest one.

Can I keep working in the business after selling it?

Yes, it is common. Many buyers prefer the seller to stay for a transition period to facilitate the transfer of knowledge and relationships. This is negotiated as part of the agreement and may include a salary or a variable component linked to results.

Conclusion

The HVAC sector is going through an exceptional moment for owners considering a sale. The combination of structural growth, active buyer demand and attractive multiples creates a window of opportunity that will not always be open.

If you have an HVAC business in the Valencian Community and want to know its value, request a free, confidential valuation. No obligation.

References

1. AFEC (Asociación de Fabricantes de Equipos de Climatización). Informe de mercado 2023 (Market report) (2024). Spanish market growth of 18% in 2023.
2. AFEC. Informe de mercado y coyuntura sectorial HVAC 2024 (HVAC market and sector report) (2025). Growth of 0.8% in 2024.
3. AFEC. Informe de mercado 2025 y coyuntura sectorial HVAC (Market report and HVAC sector situation) (2026). Growth of 11.4% in 2025.
4. European Parliament and Council. Directive (EU) 2024/1275 on the energy performance of buildings (recast) (2024).
5. European Parliament and Council. Regulation (EU) 2024/573 on fluorinated greenhouse gases (2024).
6. Real Decreto 1027/2007, approving the Reglamento de Instalaciones Térmicas en los Edificios (RITE, Regulation on Thermal Installations in Buildings).
7. Real Decreto Legislativo 2/2015, consolidated text of the Ley del Estatuto de los Trabajadores (Workers' Statute), art. 44.
8. Ley 35/2006, del Impuesto sobre la Renta de las Personas Físicas (Personal Income Tax Act), arts. 66 and 76.