Platforms underwrite the predictability of your revenue, not its size. The percentage of revenue under service agreements is the first question, followed by replacement versus new-construction mix, technician retention and licensing, and whether the business runs without you. A company with a large maintenance book and supervisors in place is a different asset from one with the same revenue that depends on the owner answering the phone.
Ask who controls pricing, dispatch software, purchasing and hiring, and whether your brand survives or gets absorbed. Platforms typically standardize back-office and procurement quickly, which is where their margin comes from. Ask what happened to the last three companies they bought in your region, and ask to speak to one of those owners.
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A competitor expanding in your market often knows your business better, moves faster with less diligence friction, and may offer more cash at closing even at a lower headline number. If a clean break matters to you, that trade is frequently worth taking. The right answer usually comes from having both types of buyer at the table at once.
Most HVAC companies sell for 4 to 7 times adjusted EBITDA, with the strongest recurring-revenue businesses reaching higher. The share of revenue under service agreements, the replacement mix and technician retention drive where in that range a specific company lands.
Platforms usually pay the highest headline number and often include earn-outs and rollover equity. Regional strategics may offer more cash at closing and a faster, simpler close. The only reliable way to know which is better for you is to have both in a competitive process and compare the structures side by side.