409(a) Appraisals
Issuing options or equity compensation? Quantive performs appraisals for 409(a) reporting requirements.
Considerations for an HVAC Business Valuation
There are certainly some unique aspects to HVAC companies that make them unique. An experienced analyst can help correlate those aspects to how they impact value. Some of the things Quantive’s professionals will address are:
- Is business driven by new construction, “add-on” business, service contract business?
- How much revenue is “repeatable?” i.e. derived from annual contract?
- What types of distributor relationships do you have?
- Analyze Profit and Loss statements for client concentration issues or risk attributable to specific market segments
- Any impact with union / non-union status
A professional valuation will take into account the above factors, as well as others specific to your company, in order to develop an accurate opinion of value for your HVAC business.
HVAC Company Models and Analysis
Typically we will rely on one (or more) of the following methods for our calculations
- Asset Based Approach – What is the net worth of the physical assets of the business?
- Market Approach – How does your HVAC business compare to peers that have sold?
- Income Approach – What is the value of the ongoing “benefit stream” of your company?
About the HVAC Industry
According to IBIS world, which is a trusted independent market research and industry analysis group, the entire HVAC industry generates over $69 billion in annual revenues. This is driven by over 430,000 people working in the industry. Industry demand is often highly dependent on the economy – thus swings in the broader economy can certainly impact the valuation of an HVAC company. Further, many firms are tied in one way or another to residential and commercial construction. As such, impacts to those markets tend to have a trickle down effect to HVAC companies that are tied in to construction.
Size remains an issue as well as it pertains to the competitive landscape. Larger companies often have an advantage – beyond simple economies of scale, more robust balance sheets enable them to maintain higher bonding and bid on larger contracts. This in part correlates to a discrepancy in valuations between HVAC businesses.
What We Work On:
Exit Planning
Thinking about retirement? Planning for a sale? A business valuation typically is the starting point of any sound exit planning process.
Litigation Support
We provide litigation support for shareholder disputes, lost profits, shareholder oppression, commercial litigation, and various other reasons.
Buy-Sell
Quantive provides a business valuation in support of buy-sell agreements, to include buy-ins and buy-outs, as well as shareholder disputes.
Estate and Gift
We perform company valuations in support of various gifting strategies, as well as in support of probate requirements.
SBA Loans
A core part of our practice is preparing business appraisals for SBA loans, as required by the SBA SOP.
Selling a Business
Your company is probably your largest asset. A business valuation for selling a company just makes good sense.
Buying a Business
Smart entrepreneurs routinely retain Quantive to understand price early and gain a roadmap for impending price negotiations.
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Quantive is a veteran owned and operated financial services firm. We work exclusively on matters related to corporate value: business valuation, value growth, and M&A advisory.