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The How of Business - How to start, run & grow a small business. cover image

518: Buying an HVAC Business with Patrick Lange

The How of Business - How to start, run & grow a small business.

NOTE

Seller Financing Challenges in HVAC Business Acquisitions

Seller financing in purchasing an existing HVAC business has reduced in the past few years due to the strong market presence of cash buyers, financial buyers, and private equity groups. Banks may request a 10% seller note in SBA deals, but finding a seller willing to finance the transaction is challenging. Sellers are hesitant due to the risk of default resulting in receiving a business they did not want, potentially with reduced value, lost customers, and decreased employee retention.

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