Millennials — and increasingly older members of Generation Z — are purchasing established HVAC companies instead of launching businesses from scratch. Many aren’t career technicians at all.  

They include former corporate professionals, entrepreneurs, and graduates of Entrepreneurship Through Acquisition (ETA) programs who view HVAC as an opportunity to own an essential, recession-resistant business with significant growth potential. 

As ETA programs have expanded at universities and business schools, more young professionals are learning that buying an existing company can be an alternative to building one from scratch. 

The trend mirrors a broader shift taking place across Main Street America. Recent reports from Forbes and The Wall Street Journal describe growing interest among younger entrepreneurs in acquiring skilled-trades businesses — including HVAC, plumbing, and electrical contractors — as an alternative to traditional startups or corporate careers.  

BizBuySell’s latest Insight Report found that 43% of business brokers reported increased activity from ETA buyers, while 44% of buyers identified themselves as “corporate refugees” leaving traditional careers to purchase small businesses. 

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“We saw a large surge in PE and investor interest, and now we are seeing more ‘Main Street’ buyers who are either looking to get into the trades for the first time or wanting to get back into the trades if they left previously,” said Patrick Lange, HVAC business broker at Business Modification Group. 

Lange said interest has accelerated over the past several years. Through the same point this year, Business Modification Group has received approximately 4,600 requests for information on HVAC businesses for sale, up from about 3,000 during the same period last year. 

“The majority would be first-time buyers,” Lange said. 

Lauren Mauldwin, an M&A advisor with Lion Business Advisors, said the interest extends well beyond experienced HVAC operators. She said she has seen more inquiries than ever from younger buyers. 

Buyers today, she said, “want something recession-proof, something that AI won’t infringe on, and something that they can use their technical skills to improve upon. Many of them say they’ve become more interested in acquiring a company in the past years, often from social media, including Codie Sanchez, Pace Morby, Ben Kelly, and other ETA groups.” 

It’s those influences that are introducing them to the idea of buying an existing company rather than starting one from scratch, she said. 

While Lange said assigning an average age is difficult, he has seen a noticeable shift in who is pursuing HVAC ownership. 

“Previously, the majority of the buyers we worked with were in their late 40s and 50s, and now we are seeing a lot under 35,” he said. 

Not all those buyers are newcomers to the industry. Lange said some are children of former HVAC business owners who sold their companies but later decided they wanted to own a business themselves.  

Many of these younger buyers rely on Small Business Administration (SBA) financing, making smaller HVAC companies particularly attractive acquisition targets. 

Mauldwin said buying an HVAC company has become more challenging than it was several years ago.  

She said recent changes to SBA lending requirements have made it more difficult for buyers without industry experience or licensing to acquire HVAC businesses by relying solely on hired management. 

“Lenders don’t want to see that,” she said. “They want to see relevant experience.” 

Crystal Williams, owner of Lemon Seed Marketing, said many younger entrepreneurs see buying an established HVAC contractor as a faster — and often less risky — path to business ownership than launching a company from scratch. 

“Over the last five to seven years, we’ve seen a major shift,” Williams said. “Instead of starting a company from scratch, more younger entrepreneurs are purchasing existing HVAC businesses because they recognize the value of an established customer base, experienced employees, and years of community trust.” 

Launching a business has become increasingly expensive, Williams said. Rising customer acquisition costs, ongoing labor shortages, and the time required to establish a reputation have made established companies significantly more attractive. 

Mauldwin said buyers also increasingly favor companies that can operate without the owner being responsible for generating revenue every day.  

Businesses with experienced journeymen, licensed employees likely to remain after the sale, a healthy mix of residential and commercial work, recurring revenue, and strong reputations tend to command greater interest. 

“Today’s buyers are looking for businesses that are stable, scalable, and recession-resistant, and HVAC checks every one of those boxes,” she said. 

That value proposition has only strengthened in recent years. Lange said the COVID-19 pandemic reinforced that perception. 

“COVID-19 proved that HVAC was immune to a shutdown while many other industries struggled,” he said. “When private equity became more interested, I think it also shined a light on the trades and made it more attractive to outside people.” 

Mauldwin said many first-time buyers are intentionally looking beyond startup culture. 

“They’re moving away from startup culture and focused on what’s actually making money, often the ‘unsexy’ businesses,” she said. 

The influx of younger buyers is reshaping the lower end of the acquisition market. 

Lange said private equity firms typically focus on companies generating more than $10 million in annual revenue, although some consolidators continue acquiring businesses with less than $2 million in sales. 

Independent buyers, however, are often competing for smaller contractors because they often finance acquisitions differently.

“Many of the younger buyers plan to use SBA financing,” Lange said. “Typically, a larger company will not qualify for SBA, so they need to be at the lower end of the market.” 

He added that while private equity buyers often target companies with at least $1 million in EBITDA, demand among independent buyers spans a much wider range of company sizes. 

Mauldwin said businesses with enterprise values under roughly $5 million continue to attract strong interest from independent buyers because they remain eligible for SBA financing, while larger private equity firms generally target professionally managed companies with stronger EBITDA.  

However, she said private equity firms have begun moving further down market in HVAC, increasing competition for some smaller acquisition targets. 

The generational shift extends beyond who buys companies; it’s changing how those businesses are managed.  

“The biggest difference is that we’re seeing more business operators and fewer buyers who are simply technicians purchasing another technician’s company,” Williams said. 

Many younger buyers come from finance, marketing, technology, or operations backgrounds. Rather than trying to be the best technician in the building, Williams said they focus on assembling strong leadership teams, investing in systems, and creating businesses that can grow beyond the owner. 

“Many younger owners think like CEOs first and contractors second,” she said. 

Mauldwin said younger buyers also approach acquisitions differently than previous generations. 

“They’re not afraid to jump into something unfamiliar and aren’t waiting until they ‘have it all figured out,’” she said. “Many of them are willing to relocate for the right business. They’re buying the weaknesses — looking for businesses that lack in the areas where they are strongest.” 

That mindset is also changing what buyers look for during acquisitions. 

Rather than evaluating revenue alone, buyers are placing a premium on recurring maintenance agreements, documented operating procedures, diversified lead sources, strong online reputations, and leadership teams capable of operating independently of the owner. 

“Buyers aren’t just purchasing what the company has done over the last several years,” Williams said. “They’re purchasing confidence in what the company is capable of doing over the next 10 years.” 

Williams said today’s buyers aren’t simply acquiring profitable companies — they’re looking for businesses that can continue growing long after the ownership transition is complete. 

Lange believes the generational transition is still in its early stages. 

While he’s hesitant to predict what the market will look like five years from now, he expects buyer demand to remain strong over at least the next three years. 

“My crystal ball works as well as yours,” he said. “But it appears that at least for the next three years it will.” 

He added that the strongest buyer activity is currently happening in the South, where population growth and demand for residential HVAC services continue to fuel interest in established contractors. 

Williams believes the shift is far from fleeting.  

“I don’t see this as a temporary trend,” she said. “I think it’s the future of our industry.” 

While social media has made business acquisitions more visible than ever, Mauldwin cautioned that buying an HVAC company requires far more than enthusiasm. 

Buyers need realistic financing expectations, relevant industry experience, and a clear understanding of how they will operate the business, she said. 

“A buyer who wins the deal knows their financing, knows the relevant industry experience they are bringing, and knows how to write a reasonable and realistic offer,” said Mauldwin.