When to Exit Your HVAC Business, Part 2

Until you know what you will do after you walk away, you are not ready. Sticking around to run the company post-sale is not an acceptable answer. Most contractors have been self-employed so long that they are unemployable. That probably describes you. As a result, few last as along as two years staying on to run their old companies, reporting to new bosses. You need something else lined up.

FIND PART 1 OF THIS TOPIC HERE

Just because the market is hot right now does not mean you need to take advantage of it. Selling your business is an irrevocable decision. Yes, you can do something completely different or start another business outside of the constraints of a non-compete, but once you sell, it is no longer your business.

If you enjoy what you do, have built a process-centric business that can run without you, and are benefiting from a nice income stream, there is no urgency to sell. Frankly, if you build yourself a money machine, there may not even be much benefit from selling.

You can always sell in the future if your circumstances change. These include reasons related to illnesses, family, or personal factors (e.g., it stops being fun).

Maybe you won’t get the same multiples in the future, but you can grow your EBITDA such that you end up with a bigger sale price anyway, plus all of the profit you get to retain, enjoy, and invest along the way.