How Does Private Equity Price an HVAC Company in 2026?
By Ed Weeks Jr., MBA, CM&AA, Weeks Consulting Group
Last updated: October 16, 2026
What is private equity paying for HVAC companies?
At two very different prices, depending on whether you’re the platform or the add-on. When Blackstone bought the HVAC platform Champions Group this year, the price was reported at around 18.5 times earnings, roughly $2.5 billion on about $140 million of annualized EBITDA, according to people familiar with the deal. Across industries, for smaller add-ons with $2 million to $5 million of EBITDA, TagniFi found private equity buyers paid a median of 6.5x in the second quarter of 2026.
Private equity is a substantial part of the tracked buyer pool. PE firms took 39 of the 77 HVAC deals tracked through early June 2026, per Capstone Partners data. If you own a heating and cooling, plumbing or electrical business, this isn’t a trend you’re watching. It’s your buyer pool, and it’s moving right now.
Same trade. Same trucks. A wildly different number. You can fix your side of it, but not once a buyer has already run the math.
How does a roll-up decide what to pay me?
They anchor first. A firm buys one solid business, and that first buy becomes the platform everything else bolts onto.
Then they bolt on smaller shops at lower multiples. With PE taking 39 of 77 HVAC deals tracked through early June, this is a factory running full shifts, not a rare event.
Then they integrate. One back office, denser routes, better vendor pricing. Your profit, bought at an add-on multiple, now lives inside a bigger machine that a larger buyer will pay a premium for. The spread between what they paid you and what the platform sells for is the prize.
Part of your price may not be cash. Deals like these often include an earnout tied to agreed performance targets or rollover equity that depends on future value and liquidity, so part of your price can be a bet on their machine, not a check in your pocket.
Why don’t owners see the gap?
The add-on price reflects the buyer’s view of the company on its own. It is not a guaranteed floor. Most owners only ever see the floor, because they walk into the market without understanding how buyers value their business. A buyer knows exactly where you sit. You should too.
There’s leverage hiding in these numbers, though. The platform can’t hit the scale that earns a platform multiple without tuck-ins. They took more than half the deals this year because they’re hungry for exactly what you’ve got. Most sellers never price that in.
How do I keep more of the value?
Be the add-on they fight over. Density in one area, recurring service revenue, and books a buyer can trust in a weekend all move your multiple up. On a business doing $2 million in profit, every extra turn is $2 million more for the exact same company.
Or become the platform yourself. I asked an owner recently: have you ever considered, instead of taking down the competition, just buying them? Roll up two or three competitors nearby and you’re the one getting bought high instead of sold low.
The owners who lose the most aren’t the ones with the weakest business. They’re the ones who never ran this math until a buyer ran it for them.
This is general education, not financial or legal advice. Multiples cited are reported figures from the sources linked above.
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About the author
Ed Weeks Jr., MBA, CM&AA, Weeks Consulting Group. Ed advises owners of $2M to $20M businesses on growth, financing, M&A and exits.
