Econ International Group
ExituraValuation.com
Due Diligence Financial Analysis
Acme HVAC Services LLC
4820 Commerce Blvd, Austin, TX 78701
Fiscal Year: 2024
Report Date: March 1, 2026
HVAC, Plumbing & Electrical Contractors (NAICS 2382)
Revenue
$3,200,000
EBITDA
$560,000
SDE
$720,000
Est. Valuation Range
$2,304,000 – $3,640,000
Acme HVAC Services LLC is a well-established HVAC, plumbing, and electrical contracting firm operating in Central Texas. The business has demonstrated consistent top-line growth of approximately 15% CAGR over the past five fiscal years, growing from $1.85M in 2020 to $3.2M in 2024. EBITDA margins have expanded from 13% to 17.5%, reflecting improved operational efficiency and pricing power.
The company benefits from recurring maintenance contract revenue (~38% of total revenue), a tenured technician workforce, and strong local brand recognition. Owner compensation of $160K has been normalized for the SDE calculation. Free Cash Flow of $428,000 provides meaningful debt-service capacity for a leveraged acquisition.
Confidence
Growth Trend
Margin Quality
Transfer Risk
Annual Revenue
$3,200,000
Net Income
$384,000
EBITDA
$560,000
SDE
$720,000
Free Cash Flow
$428,000
Owner Add-Backs
$160,000
Gross Margin
48.0%
Net Margin
12.0%
EBITDA Margin
17.5%
Source: Company financials provided by owner
2025E
Optimistic
$3,700,000
Base
$3,520,000
Conservative
$3,350,000
2026E
Optimistic
$4,150,000
Base
$3,870,000
Conservative
$3,600,000
2027E
Optimistic
$4,630,000
Base
$4,260,000
Conservative
$3,900,000
Projections assume 8–15% annual revenue growth based on Texas market expansion and service-contract growth. EBITDA margins assumed flat-to-improving at 17–19%.
Revenue Multiple
1.1x industry multiple
$3,520,000
EBITDA Multiple
6.5x industry multiple
$3,640,000
SDE Multiple
3.2x industry multiple
$2,304,000
Estimated Valuation Range
$2,304,000 – $3,640,000
≥ 1.5 is healthy
≥ 1.0 is healthy
< 1.5 preferred
Strong for HVAC sector
Healthy conversion
Consistent 15% CAGR revenue growth over 5 years
Recurring maintenance contracts (~38% of revenue)
Strong free cash flow at 13.4% of revenue
Established brand with 12+ years in Austin market
Diverse customer base across residential & commercial
Expanding EBITDA margins (13% → 17.5%)
Owner-operator dependency — key-person risk
Seasonal revenue variance (summer peak, winter trough)
Labor market tightness for licensed technicians
Supply-chain exposure on HVAC equipment costs
Licensing transfers required upon change of ownership
Customer concentration risk — top 10 clients = 28% rev
Formal CPA Review
Obtain CPA-prepared and reviewed financial statements (3 years) to strengthen buyer confidence and command higher multiples.
Document Add-Backs
Formalize all owner add-backs with payroll records and tax returns. Each documented dollar increases SDE and valuation.
License Transfer Planning
Engage a licensing attorney to map out contractor license transfers required in TX upon ownership change.
Key-Person Risk Mitigation
Promote a general manager and document processes to reduce owner dependency and de-risk the business for buyers.
Grow Recurring Revenue
Increase maintenance contract base above 50% of revenue — this alone can increase valuation multiple by 0.5–1.0x.
Engage M&A Advisor
Partner with a business broker or M&A advisor experienced in trades businesses for market positioning and buyer outreach.
DISCLAIMER — SAMPLE / DEMO REPORT: All company names, addresses, financial figures, and business details in this report are entirely fictitious and used for demonstration purposes only. This ECON DD Report format is provided for informational purposes and does not constitute a formal business valuation, legal advice, tax advice, or investment recommendation. Actual valuations are prepared using data submitted by the business owner. For formal valuations, legal matters, or tax planning, consult with certified business appraisers, attorneys, and tax professionals. Econ International Group and ExituraValuation.com make no warranties regarding accuracy or completeness and assume no liability for decisions made based on this information.
This is what your report will look like — built entirely from the data you enter. Start your free evaluation now and get your personalized ECON DD Report in minutes.
Generated by ExituraValuation.com
© 2026 Econ International Group. All rights reserved.