In a recent episode of The NEWSMakers podcast , Patrick Lange, the owner of Business Modification Group, discussed the benefits of using a broker to sell an HVAC company. How much do you know about selling companies?

Selling an HVAC Company Quiz

1. Is it currently a buyer’s or seller’s market for HVAC companies (as of the end of 2020)?
A. Buyer’s
B. Seller’s
2. Generally speaking, what do buyers value more in an HVAC company?
A. Profit coming from new construction
B. Profit coming from service/maintenance agreements
3. What percentage of businesses listed with brokers across the nation actually sell?
A. 20%
B. 40%
C. 60%
D. 80%
4. During a sales process, who is usually responsible for paying outstanding debts and obligations?
A. Buyer
B. Seller
5. If you are planning to sell an HVAC business in the next two to three years, is it usually better to purchase new vehicles or sell the company with an aging fleet of vehicles?
A. Hold off on selling
B. Sell
6. Why is it good for companies looking to sell to pay as much tax as possible, as opposed to writing off as much profit as possible as business expenses?
A. More tax implies greater asset ownership
B. More tax shows a higher profit margin
C. More tax shows the business’ ethical integrity
D. You shouldn’t. Keep trying to minimize tax as much as possible
7. When evaluating your company, about how much of your company’s past will most sellers look at?
A. The past year
B. The past three years
C. The past seven years
D. The past ten years
8. If a contractor is planning on selling their company selling soon, which of the following should they be doing?
A. Investing as much in new construction sales as possible
B. Separating themselves from the day-to-day operations as much as possible
C. Investing a significant amount in new vehicles, equipment, and more
D. Refraining from training technicians in current HVAC technology
9. Is the summer a good time to sell a company?
A. Yes. You’re making loads of profit to show buyers
B. No. Buyers will want to enjoy the company’s profit for themselves in the summer
10. When is the best time to tell employees about a company sale?
A. When you are considering listing the company
B. When negotiations with a buyer have begun
C. Immediately after the deal is official
D. About a month before the change in leadership
Thank you for completing our quiz!

Answers: 1.B, 2.B, 3.A, 4.B, 5.A, 6.B, 7.B, 8.B, 9.B, 10. C
Sorry. Please try again.

Visit our Quizzes Page for other quizzes.