Consulting-to-Equity · HVAC Operators · $1.5M–$5M Revenue

Your business doesn't have a revenue problem.
It has a cash conversion problem.

Stratum Capital Partners works with owner-operated HVAC businesses to identify structural cash conversion gaps, implement targeted improvements, and acquire equity in the businesses we help build.

Take the Criterion Diagnostic → How We Work
$1.5M–$5M
Target revenue range
8
Criterion diagnostic phases
2
Active markets: El Paso · Dallas
0
Cost to take the assessment
The Core Thesis

Most HVAC businesses are structurally underperforming their revenue.

Owner-operated HVAC companies between $1.5M and $5M are some of the most cash-generative businesses in the trades. They have real demand, real customers, and real revenue. What they consistently lack is the operational infrastructure to capture and convert that revenue into durable working capital.

The gap between what these businesses earn and what they keep is not a sales problem. It is a systems problem. And it is almost always correctable.

01
Cash cycle dysfunction
Delayed billing, inconsistent collection, and poor AR discipline turn completed work into 30–60 day receivables that strangle working capital.
02
Revenue quality mismatch
High installation dependency and weak service agreement penetration create volatile, lumpy revenue that depresses valuation multiples.
03
Owner dependency discount
When the owner is the business, every operational and customer relationship risk concentrates in one person — the largest single valuation discount at exit.
04
Margin opacity
Without job-level cost visibility, owners cannot identify which work is profitable and which is subsidizing underperforming revenue categories.
The Criterion Method™

An 8-phase proprietary diagnostic built for HVAC operators.

The Criterion Method is Stratum's structured cash conversion diagnostic. It examines eight operational phases to identify exactly where cash is leaking, what it's costing annually, and what the intervention priority should be. The scoring mechanics are proprietary. The framework is not.
Phase 01
Cash Cycle
Collection timing, billing cadence, and AR discipline.
Phase 02
Revenue Quality
Service mix, concentration risk, and recurring revenue base.
Phase 03
Billing Discipline
Invoice accuracy, timing, and payment capture at point of service.
Phase 04
Service Infrastructure
Agreement penetration, maintenance program structure, and retention.
Phase 05
Cost Structure
Gross margin by work type, labor efficiency, and parts cost control.
Phase 06
Tech & Systems
Field software utilization, reporting cadence, and data infrastructure.
Phase 07
Owner Dependency
Process documentation, management depth, and operational independence.
Phase 08
Exit Readiness
Valuation awareness, documentation, and transferable value architecture.
The Engagement Model

We don't just advise. We acquire.

01
Stage One
Consulting Engagement
We begin with a structured Criterion assessment and a 90-day improvement sprint. Fixed-fee. Defined scope. Measurable outcomes. No equity, no long-term commitment — until results are proven.
02
Stage Two
Performance Partnership
For operators who demonstrate consistent execution, we transition to performance-based arrangements — compensation tied directly to cash conversion improvement and EBITDA growth.
03
Stage Three
Equity Acquisition
We acquire minority or majority equity positions in businesses we've helped build. The Criterion score, financial trajectory, and owner alignment determine structure and timing.
Fit Criteria

Who we work with.

We are selective by design. The Criterion process works best when the operator is ready to be honest about their gaps and committed to structured improvement.

Strong Fit
Owner-operated HVAC, $1.5M–$5M revenue
Residential or mixed residential/commercial. Owner is actively involved and ready to build systems that reduce their dependency on the operation.
Strong Fit
Profitable but cash-constrained
The P&L looks healthy but the bank account doesn't. Classic cash conversion dysfunction — exactly the gap the Criterion Method is built to diagnose and close.
Strong Fit
5+ years in operation, El Paso or Dallas market
Established customer base, existing team, and local market presence. We're not building from scratch — we're systematizing what's already working.
Strong Fit
Thinking about exit in 3–7 years
Not selling tomorrow. Building toward a premium exit multiple with the right operational foundation underneath it. The preparation window is now.
Not a Fit
Businesses under $1.5M or over $8M
Below the floor, the infrastructure investment doesn't have enough EBITDA to absorb. Above the ceiling, the engagement model is different.
Not a Fit
Looking for a quick capital injection
We are not a lender. Our equity comes after structured improvement — not in exchange for a signature on a term sheet before the work is done.
Active Markets

Where we operate.

El Paso, TX
Active
Dallas, TX
Active
Miami / Ft. Lauderdale
Expansion
Denver, CO
Expansion
Las Vegas, NV
Expansion
The Criterion Diagnostic

Find out what your cash conversion gap is actually costing you.

12 questions across 8 operational phases. A four-dimension score breakdown. An estimated annual dollar gap — calculated before you ever speak with anyone at Stratum.

Begin the Diagnostic →
No cost · No commitment · Results delivered immediately
Get in Touch

Start the conversation.

If you've taken the Criterion Diagnostic and want to discuss your profile, or if you'd like to learn more about how Stratum works, reach out directly. We respond to every serious inquiry.

Email: lubercy@stratumequity.com
Markets: El Paso, TX · Dallas, TX
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