offers.aiSample memo · illustrative
Pre-Sale Diagnostic Memo · sample

Riverbend HVAC, Inc.

Commercial HVAC service & install · founded 1998 · 18 employees

Normalized EBITDA

$582K

Likely value

$2.33M–$3.49M

Recurring revenue

58%

Revenue (TTM)

$2.93M

Executive Summary

Riverbend HVAC is a 27-year-old commercial HVAC service company with $582K of normalized EBITDA on $2.93M of revenue, and — unusually for the trade — 58% of that revenue is contracted maintenance work, not one-off projects. That recurring base is the single biggest reason this business is genuinely sellable today.

At a 4.0x–6.0x multiple it sits in a $2.33M–$3.49M value range. The one thing standing between you and the high end isn't valuation theory — it's customer concentration, with your top three accounts at 31% of revenue. Tightening that over the next two to three quarters is what moves you from "good business" to a competitive auction.

What it's really worth

Your reported EBITDA of $438K normalizes up to $582K once we add back the expenses a buyer wouldn't inherit — owner comp above market, a personal vehicle on the books, family health coverage, and a one-time legal matter:

$438K+$144K$582KReportedAdd-backsNormalized
Reported EBITDA (TTM)$438K
Owner compensation normalized to market+$78K
Personal vehicle on the company books+$22K
Family health insurance (non-employees)+$14K
One-time legal (settled HOA matter)+$30K
Normalized EBITDA$582K

Applying the 4.0x–6.0x range that comparable HVAC services businesses are trading at gives a likely value of:

midpoint$2.33M$3.49M

Recent comparable: a regional HVAC services company sold to a PE platform at the upper end of this range, on the strength of its recurring maintenance base — the same lever you have.

What buyers will attack

Be blunt with yourself before a buyer is. Here's what their diligence team goes after, in order — starting with the one that actually constrains your price.

HighCustomer concentration at 31% top-3

Your top three customers are 31% of revenue — past the 30% line where buyers start cutting the multiple. Who cares, and why:

31%top 3
  • SBA-backed buyers — lenders have hard concentration caps; this becomes a financing problem, not just a price one.
  • PE platforms — discount the multiple for the risk that a load-bearing account walks post-close.
  • Strategics — care least; they often already serve overlapping customers.

You're seeing about half the memo.

The full 5–10 page Pre-Sale Diagnostic — generated from your own QuickBooks — unlocks for $499. Here's what's behind the cut:

The rest of “What buyers will attack”
Every red flag ranked, each with a $-impact estimate and how to defend it in diligence.
What to fix in 3–12 months
A prioritized, HVAC-specific playbook — each move with a grounded value-add estimate.
Who would actually buy this
The realistic buyer types for your size and shape, and how each structures a deal.
Questions a buyer will ask you
The exact diligence questions only you can answer — rehearse them on your terms first.
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Sample figures are illustrative — your memo is computed from your actual books.