Transaction Marketing and Execution
Sell Your HVAC Business
Network of over 900 private equity firms and strategic buyers
Over $500 million in transaction value
Compensation is 100% success based
Calculating the Value of Your HVAC Business
80% of Business Owners do not know the value of their business.
Of Business Owners Do Not Know The Value of Their Business
Of Business Owners Do Not Manage Their Business To Value
Of Business Owners’ Net Worth Is In Their Business
We’ve Been In Your Shoes
We understand the challenges of selling a business and respect your accomplishments. As a business advisor, our team will support you throughout the process, so you can exit on your own terms. Let us help you achieve your goals.
This often begins a couple of years prior to a sale. We will analyze historical performance of the company and ensure that it supports the company’s revenue and profit projections; assist in the identification of all potential EBITDA adjustments; review and assist with refinement of critical company sales and operational information. Where there are areas that need your focus to maximize sale value in the months and years ahead, we will make specific recommendations.
Brentwood Growth will assess and advise the company about how financial performance and valuation are likely viewed by the market. We will work with management to demonstrate how the company’s core strengths represent value-add or value creation to potential acquirers. We will consider all three buyer groups (financial, strategic, and owner/operator) while considering SBA funding parameters to determine different ways a sale could be financed. We will give you a specific value range and the assumptions behind that range.
Marketing & Qualifying Buyers
We will prepare all the marketing materials, work with you to identify which of the three buyer groups (financial, strategic, and owner/operator) are appropriate, and then execute the listing strategy. Utilizing proprietary databases built through the years, subscribed portals, and offshore resources, we will obtain maximum exposure. We will vet and qualify potential buyers, then negotiate an appropriate term sheet. We will keep the distraction away from you and only introduce you to vetted buyers.
We understand the importance of preserving value for your company during the due diligence process. With our extensive experience in managing buyer’s due diligence, we take a proactive approach to mitigate risks and manage potential purchase price adjustments. With Brentwood Growth on your side, you can have confidence that your company’s value is protected throughout the due diligence process.
Negotiating The Transaction Documents
We will work with company management and legal counsel to identify critical areas in the documents to make sure the ‘deal’ is not eroded by Reps and Warranties. We will ensure that the Reps and Warranties are reasonable and represent the ‘market’.
Get The Transaction Closed
We will work with management, lawyers, and the buyer to achieve timely completion of transaction documents, thereby guiding management in the completion of transaction disclosure schedules. We will stay on top of the buyer during the process to drive timely execution.
Why Brentwood Growth
We understand your business and have our finger on the pulse of the M&A market. We know what buyers are looking for and can position your business to attract interest.
Experienced and Talented Team
Our team has extensive experience advising on and executing M&A transactions. Our advisors have prior experience working at leading investment banks, private equity firms, consulting firms, and law firms.
We have strong relationships with hundreds of buyers, and we can quickly tell who is a good candidate to buy your business.
Recent Closed Deals
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"When I first met Brentwood, I had no idea what I really wanted to do, what I did know is I needed a change. The Brentwood team helped me not only understand what my business was worth but consider options that I had not thought of. They were responsive and very knowledgeable. They laid out the multiple pros and cons of each, never pushed and allowed me to move at my pace. When I decided which option I wanted to explore they immediately set up conversations and the process began. We talked to a variety of partners, and I got a real feel of what was possible and what was the right fit. There is no way I could have managed the due diligence and legal process on my own. They were excellent at managing that and guiding me through all the way to closing. This was a huge decision for my family and myself, and I cannot imagine a better advisor. I would highly recommend Brentwood for anyone wanting to begin to explore options. On top of everything else they are straight shooters and good guys."
Brian Resnick (Seller), Ecosystems NJ
“The Brentwood team is great. They understand the market, what we are looking for, come prepared, and manage the seller and the process extremely professionally. These are tough deals due to the size of the business, limited financial and corporate records and the fact that these sellers have never been through a process before. They bring great value in managing the entire process. We always listen when Brentwood calls with an opportunity.”
Michael Hompesch (Buyer), Ecosystems, NJ
“I am extremely pleased with the Brentwood Growth team. Max Kabat, Jackson Rubinowitz & Steve Thompson have been an absolute pleasure. They have earned every penny, probably more, and honestly, we wouldn’t have gotten to where we are today without them. On a daily basis they impressed me with their knowledge. They communicate well and I felt like I was Brentwood Growth’s only customer. I wish my team treated all of my customers this way in all their interactions. You should know (and I’m sure you already know) - these guys are rock stars. I’ll tell everyone I know who is looking to exit to reach out to Brentwood Growth. Hands down the best experience I could have hoped for!”
Nathan Senica, John’s Service and Sales, Inc.
"We really liked John. He came to our house and sat at the kitchen table. He was honest, kind and straight forward which we really appreciated. We had no idea what the process looked like to sell a business. Brentwood Growth broke it down into different stages that helped immensely. They were always available for a meeting when we had questions. They handled us with care. When they saw us struggling, they boosted us when we needed it. We truly enjoyed working with them. We always felt they had our best interest at heart. They listened to what kind of company we wanted to partner with, they found us the right partner and we got the highest price!"
Jan LePrevost, Seller, LePrevost Plumbing, Heating and Cooling
Jon Sells, Seller, Jon’s Plumbing & Heating Air
OUR METHODOLOGY HAS A PROVEN TRACK RECORD
Who Are the Buyers?
Brentwood Growth will review each of the following three groups with you to achieve the maximum exposure, visibility and value.
Each group has characteristics and objectives that are unique with pros/cons.
- Identify which groups make sense to market your business to.
- Utilize our proprietary databases we’ve built through the years.
- Build your company’s strategic lists.
- Subscribe to portals to obtain maximum exposure and interest.
3 Types of Buyers
- Consolidators backed by private equity firms
- Buying companies in various sectors that meet their profile
- Merging them into larger companies
- Improving the business for larger revenue growth, expanding service lines, improving operational and financial efficiency, supporting recruiting and retention
- After 5-7 year holding period selling consolidated platform as one large company
- Either need owner to stay to run the business, have management in place or hire management
- Increase existing market share from existing or complementary products or services
- New markets, customers or geographical footprint
- Merge back office with existing operations achieving cost synergies
- Could operate as stand-alone or consolidate into existing operations
- Similar business in different geographic market that want to be in your geographic market or complementary business in same geographic market that want to add your services
OWNER / OPERATORS
- Individual buyer that will be active day to day management
- Will replace current owners responsibilities
- Looking for solid, consistent cash flow performance with growth potential
- Returns based on consistent cash flow to fund owner/operator compensation as well as investment in company to drive growth and valuation enhancement
- Deal Structure likely to include SBA financing and/or “Seller Financing”
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How to Increase the Value of Your Business
Answered by Expert Business Advisors
How is the value of my business calculated?
It comes down to two numbers:
- Free cash flow the business generates
- Multiple of that cash flow a buyer is willing to pay
What is the process?
Our team will support you throughout the process, so you can exit on your own terms. Let us help you achieve your goals.
What is EBITDA or free cash flow?
For our purposes EBITDA and free cash flow are basically the same. It is the cash flow the business will generate to the buyer without the owner(s) associated compensation, expenses being run through the business and all one-time expenses added back.
What determines the multiple a buyer will pay?
Amount of new construction and project based work
Amount of service and maintenance work
Revenue growth year over year
Marketing reputation management
Lead generation program
Size of technician crew
Business runs independent of owner involvement
Do I have to sell 100% or is a partial sale possible?
Either is possible. It depends on your timeline / objectives, who the buyer is and what their plans are with the business. By having a partial sale you are able to “pull some chips off the table” continue to run and grow the business then sell the remaining piece down the road with a clear exit and transition plan.
How long does it take to get a transaction completed and will I be required to stay on post sale?
A transaction takes around 6 months to complete and the buyer will want to structure a transaction that meets your objectives. If that means work with you for several years great, if that means leave quickly then that is fine also. Whatever works for you and the buyer.
Who are the buyers for companies like mine?
National and regional consolidators backed by private equity firms looking to buy smaller companies and merge them into a larger company Strategic Buyers – companies in same sector wanting to expand into your geo market or companies in same geo market wanting your service lines. Owner / Operator – younger version of you. Someone wanting to buy a business, replace your responsibilities, run and grow it for next 10+ years. ABOUT BUYER GROUPS
How will my employees be treated post sale?
The buyer certainly needs them to stay and help run the business. In many instances the pay, benefits and potential for career advancement actually improves as they become part of a larger company.
Is this interest in home services and facility management companies a bubble and how long will it last?
The buying and consolidation will continue for at least several years, the current valuations paid is anyone’s guess.
How does Brentwood Growth get paid?
We are paid a success fee at closing if and when the transaction is completed.
The range of the fee varies based upon the size of the transaction. There is no retainer or monthly support fee during the process.
We only get paid if a deal is completed. Our pricing model is based on industry accepted Double Lehman scale.
Am I locked in once we start the process?
You are never locked into a commitment to the process or with us. If at any time you change your mind or are not satisfied with our performance, you can cancel the agreement and nothing is owed. Furthermore, if you are not satisfied with any offer or any buyer you are under no obligation to accept the offer.
What is a Business Broker?
A sell-side business broker represents the seller and works on their behalf; a buy-side business broker represents the buyer.