Independent Contractors vs. Non-Equity vs. Private-Equity: The Pros and Cons of 3 Different HVAC Company Sizes

Updated: June 21, 2024 

Searching for an HVAC company to trust with your home’s comfort can be confusing. Here’s a look at how company size impacts your overall customer experience.

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Evaluating your local heating and air conditioning companies is a crucial step toward making sure you receive quality and reliable services and an overall positive experience.  

The HVAC service landscape is full of varying levels of workmanship, expertise, and commitment to customer service. You may be left to decipher if a specific service provider you’ve met with can be trusted to deliver on your expectations. 

Moreover, you may not know how an HVAC company’s size impacts the various aspects of the service you’re signing up for. 

Each service provider is different, so broad generalizations can be challenging to make, however, an HVAC company’s size does typically play a role in the experience you’ll get. Staying mindful of this can help you make the right decision. 

The three broadest size-based classifications of heating and cooling service companies are individual contractors, medium or large non-equity, and equity-backed firms.  

This article will cover the pros and cons that typically apply to each of these different company sizes so that you understand how to confidently choose your service provider, based on your own priorities. 

 

1. Pros and Cons of Hiring Independent Contractors & Small Businesses 

 

An independent contractor could be a one-person company or a small business with a few members, usually founded by an HVAC veteran, or a young service technician looking to spread their wings. 

Among the most significant evaluations you’ll need to make, regardless of the company’s size, is the quality of service you’ll be getting with your installation, repair, or inspection. Don’t be afraid to ask an independent contractor “How’d you get into HVAC service?”  

Their answer can shed some light on their level of experience, as with independent contractors the quality of expertise available on the market is vast; there are both seasoned industry experts, and under-experienced technicians offering services to the general public. 

For this reason, the experience level of independent contractors is too hit or miss to declare service quality as either a pro or a con for this size of HVAC company.

 

Pros of Working with an Independent Contractor

 

A Greater Likelihood to Offer Competitive Prices 

While it’s impossible to make sweeping statements about the expertise of independent HVAC technicians, when you hire a small heating and cooling business, you may find the most competitive prices.  

A small operation has fewer overhead costs as they might be working from one or two trucks and a modest parts shed.  

This translates to lower prices for you, the consumer, as they don’t have to worry about paying several employees, managing a central location, and other costs of doing business at a larger scale. 

 

Fewer Employees Often Means More Focus on Customer Service 

A small, sometimes family-owned, business is more likely to value customer service than an equity-backed firm. Consider the fact that a national HVAC company could have tens of thousands of customers each month, meaning you’re less valuable than you’d be with an independent contractor.  

An independent contractor will be more likely to work with you on anything you need to provide services to your home. While they’ll have fewer resources, in many situations you should have better customer service working with a small business. 

 

Cons of Working with an Independent Contractor 

While a small HVAC company doesn’t have to worry about overhead business expenses and can therefore pass along those savings to you, this lack of resources also has a few effects that can potentially negatively impact your customer experience.    

 

Scheduling Challenges May Occur 

While a small contracting business can lead to better customer service, their limited resources can also impact availability to get you booked with an appointment, frequently leading to a longer wait to get your home serviced. For instance, some contractors might turn off their work phone while on vacation. 

This may not be a concern if you don’t find yourself in a heating or cooling emergency, however, if you need quick work done to get your home’s comfort back, it may take several days for an independent contractor to have the time to get your equipment working properly again. 

 

Less Availability to Provide Support After Installation 

Resource limits can also cause small HVAC companies to provide less prompt follow-up customer support for issues following a job. There may be some exceptions to this rule, where a contractor may find time to come back and solve lingering issues quickly, however, for the most part, small business owners are more focused on going to the next job rather than going back to fix a previous one. There’s the chance that you’ll have to wait again to get post-work supporting services, should you need them. 

 

2. Pros and Cons of Hiring a Medium or Large Non-Equity HVAC Company 

 

A medium or large non-equity company has more resources than an independent contractor, including a larger fleet of trucks, a central location for doing business, and several trained employees. This type of HVAC company is without the backing of a financial institution and is usually well-engrained in its local community.  

 

Pros of Working with a Medium or Large Non-Equity Company 

 

A Good Balance of Resources, Expertise, and Customer Service 

Non-equity companies have more resources than independent contractors but typically retain the personalized customer service that helped them grow in the first place. Extra employees, trucks, equipment, and materials can help get your appointment scheduled faster, and the job done quicker. 

Medium or large non-equity companies also have a greater likelihood that you’ll get quality service, as their employees often go through ongoing training and certification courses. You’ll also have easier access to speak with management than with private-equity companies, should you need to.  

Overall, HVAC companies of this size offer a greater level of resources without sacrificing customer service. 

 

More Support After Installation  

Along with more business resources comes the ability to offer speedy support after work has already been done. For a medium or large non-equity company that has many trucks and employees, finding availability to send a technician to provide follow-up service is more easily done. This translates to a better overall customer experience. 

Independent contractors, and some private equity HVAC companies, may or may not be able to quickly return to support a recently completed job. 

 

More Likely to Receive Guarantees and Warranties 

Medium and large non-equity companies are more fit to offer guarantees and additional warranties than smaller service providers, and are more likely to follow through on them than private equity companies. Non-equity companies still hold close-knit ties with their communities and will provide support with guarantees and warranties to keep that relationship with the public. 

 

Cons of Working with a Medium or Large Non-Equity Company 

 

Increased Business Costs Can Mean Higher Prices 

A non-equity company with several resources has more overhead costs than an independent contractor. The expenses that come with running a larger business can lead to a higher price of services. While it’s important to consider the advantages, like expertise and resources, that come with a larger HVAC service provider, costs play a part in any decision. 

 

3.  Pros and Cons of Hiring a Private Equity-Backed HVAC Firm

A private equity-backed HVAC company is often a national brand that owns numerous smaller companies and services significant portions of the country. These super-sized service providers are tied to shareholders and financial goals that drive business decisions, both with their employees and customers.  

Private equity companies are essentially HVAC corporations with several layers of management, with comes with its own pros and cons. 

 

Pros of Working with a Private Equity-Backed Firm 

 

Vast Resources Increases Scheduling Availability Access 

With a virtually uncapped number of trucks and employees, private equity HVAC companies can offer  quick scheduling turnaround times. Even during peak summer and winter seasons, these companies are likely to be able to get technicians to your house and have the job done quickly. 

Whereas independent contractors and even some large non-equity companies may struggle to find scheduling for you during the busiest times of the year, private equity companies are virtually always able to have someone to your house right away. 

 

Consistent Processes are Typically Followed  

There is something to be said for the peace of mind that comes with a company that follows a precise process. Private-equity companies will almost certainly take you through a guided process that makes each step simple and understandable. Many homeowners are extremely happy with having a layer of familiarity with how a company handles their work. 

While all HVAC service providers have a defined process for doing work, private-equity firms do a great job of making sure each step is properly done and you are adequately informed along the way. 

 

Cons of Working with a Private Equity-Backed Firm 

 

Customer Service Experience Can be Less Personal 

Large HVAC companies that are backed by financial institutions almost always have shareholders to answer to, in addition to their customers. This means that you may encounter a less personalized experience, as company leadership may be more focused on profits than on individual jobs. 

The nature of private-equity heating and cooling companies makes it more likely for oversights in handling customer interactions and less of an emphasis on providing support after installations. 

There will always be high-quality individuals working at private equity firms that do make for a personal customer experience. However, there are many who don’t value your business as much as an independent contractor or non-equity company does simply due to the number of jobs each company handles.  

 

Quality of Work May Sometimes Be Lost 

The quality of work offered by private-equity HVAC companies isn’t necessarily going to be poor, as many do a good job of retaining highly skilled professionals that provide a quality customer experience. 

However, with so many employees it can be hard to predict the level of expertise of the technician coming to your home. Consider that a national HVAC company has tens of thousands of employees to supervise who are rarely anywhere near their company’s leadership team. 

 

How To Evaluate and Choose Your HVAC Company 

 

At this point, you should understand how the size of an HAVC company can affect the quality of work and customer service you’ll be getting. 

A company’s availability of resources can improve your customer experience and allow you to get work done quicker, however when companies are so large that the quality of their employees and work done is frequently lost in the layers of management. 

As you go to make your decision, it’s a good idea to talk to at least two or three different service providers before making a final decision. You’ll have the chance to talk to them about their background, as well as the details of the job and what the scope of work entails. 

The list of considerations at this decision-making stage involves more than just the company’s size, so be sure to be vigilant and consult with a professional to help make the right decision for you and your family. 

However, the differences between independent contractors, large non-equity companies, and private equity-backed companies should be factored in as you move forward with your HVAC installation or repair. 

For any HVAC questions, call the Mattioni team at 610-400-8510, visit our online Learning Center, or schedule an in-person consultation online today.