TREP Advisors, LLC, a top 25 mergers and acquisitions (M&A) advisory firm, recently facilitated the successful sale of Viking Mechanical Refrigeration to a private equity firm building a nationwide mechanical contracting platform. TREP delivered a successful owner exit at nearly 8x EBITDA in 82 days from signing our representation agreement to close.
Background
Viking Mechanical Refrigeration is a family-owned HVAC and commercial refrigeration company in Santa Maria, California. Founded 20 years ago by Steve Dahl, a Navy veteran who built the business after his military career, the company is now led by his son, Spencer, the second-generation owner who has worked in the business for most of his adult life.
Viking Mechanical provides 24/7 HVAC service across California’s Central Coast. The company serves an impressive roster of clients, including wineries in the renowned Paso Robles region, Vandenberg Space Force Base, hospitals, condominiums, and general commercial businesses.
Owner Goals
The Dahl family came to TREP by referral with two complementary motivations. Steve, the founder, was ready to exit after two decades of building the business. He and his wife, Cheryl, were eager to enjoy the next chapter of their lives. Spencer, meanwhile, wasn’t looking to simply cash out. He wanted a strategic partner who could bring resources and operational support, allowing him to remain as CEO, serve clients, and grow the business. Spencer also valued a better work-life balance and a buyer who would respect the company culture and workforce the Dahls had built.
Balancing these priorities, retirement security for one generation, a growth partnership for the next, and cultural continuity for the team, meant TREP needed to find a buyer who could satisfy all three, not just the highest bidder.
TREP’s Approach
After an initial call and financial review, TREP’s Rob Chepak traveled to Santa Maria to meet the family, tour the operation, and understand firsthand what made Viking Mechanical special.
TREP spent one month preparing the company for market: getting to know the mechanical contractor inside and out, understanding its strengths, learning what employees and customers valued, and building compelling marketing materials.
Prior to engaging TREP, another M&A advisor had estimated the company’s value at a figure that underrepresented the business. TREP’s HVAC business valuation identified significant additional value, projecting a sale price 25% higher and setting the stage for a competitive process that launched to the M&A market in September.
From 122 Prospective Buyers To 1 Winner In 82 Days
The response was extraordinary. TREP generated 122 signed NDAs from prospective buyers in its 6,000-strong buyer network. Each NDA represented a prospective buyer’s commitment to learn more. TREP’s team of five professionals screened every single buyer in 30 days while the Dahls focused on what they do best: running the business.
From the 122 interested parties, TREP identified 12 highly qualified buyers, all private equity firms, aligning with Spencer’s preference for a financial partner rather than an industry consolidator. Eleven Letters of Intent (LOIs) were submitted, followed by multiple rounds of competitive bidding that drove the final valuation.
The competitive process ultimately came down to two finalists and one winner. Notably, Spencer did not select the highest bid. The winner, at nearly 8x EBITDA, was a private equity firm building a mechanical contracting platform. They invested time in a genuine relationship with the Dahls. They understood Spencer’s vision, respected the family’s legacy, and shared his ambition to grow.
The final transaction closed at 67% above the original estimate and 33% above TREP’s own projection. From signing the representation agreement to closing, the process took just 82 days.
Outcome
The deal delivered wins for every stakeholder at the table:
For Steve and Cheryl Dahl: Retirement funding to enjoy the next chapter on their terms.
For Spencer Dahl: Liquidity, entrepreneurial freedom, more time with his family, and the opportunity to continue leading Viking with meaningful equity and a growth-oriented partner.
For the buyer: A high-quality regional anchor on the West Coast for their mechanical contracting platform, a proven operator, and a launchpad for additional business.
For Viking Mechanical’s team and customers: Continuity of leadership, access to greater resources, and a path toward growth that strengthens the business for years to come.
“It was my great pleasure to have TREP take our family company to market. Every step of the way, TREP was there to ensure I understood the deal. They went to bat for me. They made sure we all got what we needed out of the deal. It was a lot of work, but it was work that was steered by true professionals, and very friendly and appreciative professionals at that. They had an answer for every concern and question. They provided countless resources and hours, and I will forever be grateful for their efforts in making sure our family business and employees are in good hands. TREP finds itself mostly on the East Coast, but they may as well have been on the West Coast with me because the time didn’t matter; they were always there. I hope to never sell another business again, but if I do, Rob, John, Larry, and Kelly will be working alongside me every step of the way.”
– Spencer Dahl, Owner & CEO, Viking Mechanical Refrigeration
Why TREP Made the Difference
Viking’s sale illustrates what a great M&A advisor can deliver. A 122-buyer funnel, managed by a five-person team over 30 days, produced 11 LOIs and drove the final price 33% past TREP’s own projection and 67% above another advisor’s estimate. The result wasn’t just financial. By managing the full complexity of a multi-stakeholder family transaction, TREP ensured the Dahls didn’t have to choose between maximizing value and finding the right fit. They earned both.
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| Transaction Summary | Industry | Mechanical Contractor |
|---|---|
| Location | West Coast |
| Enterprise Value | Not Disclosed |
| EBITDA Multiple | ~8x |
| Structure | Cash, equity, and earnout |
| Winner | Private Equity Firm |
| Time To Close | 5 months |
