How to Raise Money to Buy an HVAC Business in Texas (2026 Guide, With a Navasota Close)
by Raises.com
To raise money to buy an HVAC business in Texas in 2026, buyers combine an SBA 7(a) loan or senior credit facility, a seller note with rollover equity, and a small equity slice from the buyer or an investor SPV, then satisfy the Texas Department of Licensing and Regulation that a licensed air conditioning and refrigeration contractor qualifies the business after close. Raises.com advised on exactly that stack for a profitable HVAC contractor in Navasota, Texas, that closed in July 2026 and was covered by Yahoo Finance and AP News.
Why Texas is the HVAC acquisition market
- Climate drives demand. Long cooling seasons across Houston, Dallas-Fort Worth, Austin and San Antonio make replacement and service revenue steadier than in milder states.
- No state personal income tax. Owner distributions are taxed federally only; Texas levies a franchise (margin) tax on businesses above a no-tax-due revenue threshold, at rates below 1 percent of taxable margin.
- Population and construction growth keep adding rooftops and commercial square footage that need equipment.
- Consolidators are active. Private-equity-backed home-services platforms have been reported acquiring Texas HVAC contractors, which raises prices for larger targets and leaves plenty of owner-operated shops for buyers who move first.
The Navasota close: the stack that worked
Cody Sechelski, a Texas construction operator with more than ten years in the industry, booked his first Raises.com call in October 2025 with a roll-up thesis. The inaugural acquisition, a profitable Texas HVAC contractor in the roughly $2.4 million range, closed in July 2026 with an institutional senior credit facility, junior debt, a seller note, seller rollover equity and a structured equity gap, and minimal sponsor cash equity. The engagement ran about seven months and included a lender that quoted three weeks and took two months, which is why the team ran a tournament of capital firms in parallel. The press release and the on-location episode filmed in Navasota carry the full story.
Funding sources for a Texas HVAC deal
| Source | Typical share | Texas note |
|---|---|---|
| SBA 7(a) | 60 to 80% | Texas has SBA district offices in Houston, Dallas-Fort Worth, San Antonio, Lubbock, El Paso and the Lower Rio Grande Valley; regional banks in the state are active 7(a) lenders |
| Seller note with rollover equity | 10 to 25% | Used on the Navasota close; keeps the seller engaged while technicians decide whether to stay |
| Senior credit facility | 50 to 70% | The route for a platform that will keep acquiring across Texas metros |
| Junior debt | 10 to 20% | Filled the gap on the Navasota close |
| Investor SPV (Reg D) | 10 to 30% | Texas has a deep in-state accredited investor and family-office base, and 506(c) reaches beyond it |
Texas-specific diligence
- TDLR licensing. Air conditioning and refrigeration contracting in Texas requires a TDLR ACR contractor license held by a qualifying individual. If the seller holds it, the transition agreement must name who qualifies the business after close.
- Franchise tax filings. Confirm the target's franchise tax reports are current; a lender will ask.
- Refrigerant transition inventory. New systems since January 2025 use lower-GWP refrigerants such as R-454B and R-32; audit remaining R-410A stock and technician training.
- Metro mix. Houston commercial work leans on energy and medical campuses, Dallas-Fort Worth on corporate relocations and new-build residential, Austin on higher price points, San Antonio on lower competition. Underwrite the book you are actually buying.
- Storm and grid exposure. Freeze events and summer grid strain create demand spikes and warranty exposure; check how the business handled the last one.
What this looks like on a real close
In July 2026 a Raises.com client, a Texas construction operator named Cody Sechelski, closed the inaugural acquisition of his services roll-up: a profitable Texas HVAC contractor in the roughly $2.4 million range. The stack was an institutional senior credit facility, junior debt, a seller note, seller rollover equity and a structured equity gap, closed with minimal sponsor cash equity. He booked his first call in October 2025, so the active engagement ran about seven months, including a funding tournament across multiple capital firms and a final lender that quoted three weeks and took two months. The close was covered by Yahoo Finance, AP News, Morningstar and The Globe and Mail, and he tells the whole story on the podcast.
Raises.com has helped clients raise more than $300 million across business acquisitions, real estate and funds, with documented case studies in the clients' own words. The service is flat fee: no success fee, no carry, no broker-dealer placement charge, and pricing is published on the booking page.
Watch: How Cody Sechelski Raised Millions to Acquire Service Businesses In Texas
Watch: The Roll-Up Explained #shorts
Frequently asked questions
Do I need a Texas HVAC license to buy an HVAC company in Texas?
The business needs a TDLR-licensed air conditioning and refrigeration contractor as its qualifying individual. That can be you, an employee, or the seller during a defined transition.
Can I use an SBA loan to buy an HVAC business in Houston or Dallas?
Yes. HVAC contractors are a standard 7(a) acquisition, and both metros have SBA district offices and active regional lenders. You need a 10 percent injection, relevant experience or a transition plan, and coverage above about 1.25x.
How much do Texas HVAC businesses sell for?
Owner-operated shops are quoted on a multiple of seller's discretionary earnings; larger companies on EBITDA. Consolidator competition has reportedly pushed larger targets higher, while small shops remain in the low single-digit multiples. Cash flow, not the multiple, is what the lender tests.
What did the Navasota deal use?
An institutional senior credit facility, junior debt, a seller note, seller rollover equity and a structured equity gap, closed with minimal sponsor cash equity, on a profitable Texas HVAC contractor in the roughly $2.4 million range.
Does Texas tax the business I buy?
Texas has no personal income tax. The franchise tax applies to entities with revenue above the state's no-tax-due threshold, at rates under 1 percent of taxable margin; confirm the current threshold with the Texas Comptroller.
Where to go next
- How Raises.com structures and raises capital for business acquisitions (flat fee, no success fee, no carry).
- The step-by-step guide to buying a business, from search to close.
- The Texas HVAC acquisition press release covered by Yahoo Finance, AP News and Morningstar.
- Watch the client videos and read the FAQ before you book.
- Book a strategy call with one of the advisors. Pricing is shown on the booking page before you pick a time.