Arkansas HVACR NewsMagazine September 2026

HVACR NewsMagazine September 2026

Business & Marketing Tips

PE firms often operate many companies in the same industry, making economies of scale a significant buying advantage. They can negotiate lower prices for equipment, vehicles, employee benefits, and other important assets and services because they buy in larger quantities. So they are less concerned with the company’s current cash flow than with its future cash flow under their umbrella. This is why they can make offers for businesses that are above most traditional buyers’, even above market valuation; they know that by increasing revenue and cutting costs, they can make the company profitable. PE firms buy companies to grow them and sell them again in a relatively short time frame. If a seller’s top priority is the company’s legacy, a traditional buyer with industry experience might be a better fit. PE firms may come in and immediately start cutting costs, including labor costs, and eliminating inefficiencies. They will prioritize revenue growth and keep their focus squarely on profitability. Within three to five years, they often will sell the larger and more profitable company to someone else. This reality is something a seller must consider before choosing the right buyer for their business. Most sellers would prefer to get a larger payout from the sale or to get a second bite at the apple in a few years. But not all. If the owner’s priority was building a business for their family’s future or remaining locally owned and operated, selling to a PE firm may not be the best choice. Every business deal is unique, and every buyer has the right to choose who they want to sell their company to. Making the

right decision for your company will be based on both financial and legacy goals. But making an informed decision is critical.

On Thursday, August 13 , join Patrick Lange for a free virtual masterclass designed specifically for owners of HVAC companies generating under $5 million in annual revenue . Patrick will explain why buyers are actively interested in businesses this size, how the sales process differs from larger acquisitions, and what owners can do today to improve their future exit opportunities. • Why buyers are actively acquiring HVAC companies under $5 million • Why selling a smaller company requires a different playbook • The five characteristics buyers evaluate before making an offer • How to prepare your business years before you plan to sell • How to determine where your company stands today During this session, you'll learn:

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