Residential HVAC Roll-Up Strategy

The Starting Point

• Industry: Residential HVAC
• Revenue: $20 million
• EBITDA: $2.3 million
• Equity Value: $10 million

The owner had an aggressive roll-up strategy underway and needed:

• A lender willing to underwrite against rollover equity value
• Minimal cash equity contribution
• Flexible acquisition funding capacity

The company required capital that could scale alongside rapid acquisition activity.

Structuring Capital Around Future Growth

Attract Capital structured acquisition financing based on projected EBITDA and future scale — not just historical performance.

We designed a flexible structure that allowed funding to be drawn as acquisitions were executed.

Initial Financing Raised

• $20 million facility
• Used to refinance and fund six acquisitions

Two-Year Impact

• Revenue increased from $20M to $42M
• EBITDA increased from $2.3M to $7.2M
• Growth achieved with only a very small cash equity contribution from the owner

Replacing a Non-Supportive Lender

Despite strong operating performance and successful acquisition execution, the original lender became non-supportive due to financial reporting lapses.

Given the company’s momentum, we advised replacing the lender.

Scaling to the Next Level

We raised a $44 million facility to:

• Refinance existing debt
• Fund five additional acquisitions

This structure included:

• Flexible delayed draw funding
• Scalable acquisition capacity

We were deeply involved in:

• M&A strategy execution
• Valuation advisory
• Due diligence coordination
• Transactional support
• Strengthening lender relationships
• Helping convey capital credibility to sellers
• Advising on financial reporting and acquisition integration

Growth Results

• Revenue increased to $80 million
• EBITDA increased to $14 million

3-Year Value Creation Snapshot

• EBITDA: $2.3M → $14M (6x increase)
• Equity value: $10M → $145M (14.5x increase)
• ROI: 240% per annum

The company became one of the largest and most valuable residential HVAC platforms not owned by private equity.

Expansion to Support the Next Growth Wave

We recently negotiated a $75 million expansion of the debt facility.

Projected performance over the next 12 months:

• EBITDA expected to reach $30 million
• Projected terminal equity value of $300 million

Total Capital Impact (3.5 Years)

• $140 million in total financing raised
• Multiple lender transitions executed strategically
• Capital scaled in line with acquisition velocity
• Enterprise value increased more than fourteenfold