This week: A Marine Corps veteran eyes an HVAC company with recurring revenue, strong community reputation—and a hidden workforce issue.

THE SETUP

Could This Be a Cool Deal—or Too Hot to Handle?

Welcome to Pine Bluff, Arkansas—a working-class town with brutal summers, aging infrastructure, and just three licensed HVAC shops serving a 40-mile radius.

Caleb, a recently separated Marine Corps logistics officer, is evaluating a $850,000 listing for “Cumberland Heat & Air,” a second-generation, family-run HVAC company with 26 years in business and a strong base of recurring maintenance contracts.

But as he looks closer, Caleb spots several potential landmines:

• Is the labor pipeline drying up?
• What happens when the current owner (and tech lead) retires?
• Can he turn a “comfortable” business into a scalable one?

Let’s break it down.

THE BUSINESS

Solid Cash Flow—With a Succession Problem

Cumberland Heat & Air brings in about $1.4M in annual revenue with an estimated $310K in SDE. Roughly 55% of income comes from residential customers, 30% commercial, and the remaining 15% from long-term service agreements.

But here’s the twist:
The current owner, Rick, still handles 75% of diagnostic work himself. There are two techs on staff, but both are semi-retired and not interested in full-time roles. There’s no official ops manager. Dispatch is handled by Rick’s wife.

Financials (2024):

• Revenue: $1.42M
• SDE: $310K
• Asking Price: $850K
• Owner willing to finance 10%
• Includes 2 vans, $35K in equipment, and 400+ customer accounts

Caleb’s first reaction: great margins, but key-person risk is off the charts. He’s not an HVAC tech. If Rick walks away on Day 1, the business could crash.

THE FINE PRINT

Labor Shortage, Licensing Gaps, and Veteran Opportunity

Caleb did what every smart ETA operator should: he started asking local trade schools and licensing boards about the HVAC talent pool. The answer?

“It’s drying up.”

Fewer young people are entering the trades, and of those who do, many leave town for bigger markets. Licensing takes 2+ years, meaning onboarding green talent isn’t quick.

But here’s where Owners in Honor comes in:

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Caleb qualifies for VA-funded technical licensing programs, SBA 7(a) loans with veteran preference, and has access to mentorship through your operator pipeline.

Still, this is a build-not-buy situation. Caleb isn’t stepping into a turn-key operation—he’s stepping into an apprenticeship with financial exposure.

THE INDUSTRY

Hot Market, High Demand, but High Dependency

The HVAC industry is booming. Units over 15 years old account for 40% of systems in the U.S., and climate volatility is making maintenance contracts more valuable than ever. But…

• EPA regulations are phasing out older refrigerants, raising costs.
• Demand-based pricing is increasing, but only works if you have crews to serve it.
• M&A interest in the space is growing, especially from roll-up firms.

Veterans like Caleb have a secret weapon: logistical experience and grit. But he needs a plan to operationalize that mindset—fast.

VALUATION

Is It Worth $850K?

Caleb’s mentor inside the Owners in Honor network thinks the valuation is high.

“Without a full-time lead tech or ops manager, this isn’t an $850K business. This is a $500K business with potential—and a 24-month runway.”

The upside? Caleb can use SBA 7(a) lending with 10% down, and the seller is open to a phased handoff. But it’s still a hustle-heavy situation.

THE BOTTOM LINE

Is This the Right First Command?

If you’re a veteran looking to buy a business, you have to ask yourself:

Do I want a plug-and-play operation…
or am I ready to lead a transformation?

Cumberland Heat & Air has real bones—but it needs a builder. The kind of person who’s used to leading under pressure. The kind of person who’s not afraid to get their hands dirty.

In other words: it needs a veteran.

Are you a veteran operator looking for your first mission on Main Street?
Visit ownersinhonor.org to join our operator pipeline and get deal support, mentorship, and veteran-friendly capital.

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