ClimateCare Navigator Program

What is ClimateCare Navigator?

Navigator is a three-phased program for Enterprise and Strategic members to help navigate business transitions and succession planning.

Whether your goal is a seamless internal transition next year, five years from now, or twenty, our Navigator program will help you maximize the valuation and exit strategy for your business.

Navigator helps our members get “succession-ready” regardless of how far in the future that is. It includes best business practices that will help you maximize the value of your business tomorrow and help you run your business more efficiently today.

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What are the three phases of the Navigator program?

Learn more about the 3 phases of the ClimateCare Navigator Program by clicking on the phases below.

Phase 1: Analysis

Phase II: Blueprint

Phase III: Succession-Ready

Phase 1: Analysis

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An extensive (and insightful) evaluation of your company’s strengths, opportunities, gaps, and weaknesses.

A rigorous review of company financials to identify the current market value of the business. The operations of the business are benchmarked using ClimateCare’s Critical Performance Measures. A gap analysis is then done to uncover what steps need to be taken to achieve the long-term plan of the owner.

The initial valuation is done in a 3–4-hour meeting that reviews the company’s P&L and Balance Sheet to determine an adjusted EBITDA.

Analysis Examples:

Board members put their companies through the Analysis process to help us provide you with examples of how member companies would be valued and what steps can be taken to increase the value of their businesses in a time frame that matches their plans.

The Expression of Value is based on a Fair Market Value defined as the highest price, expressed in terms of cash equivalents at which the company’s Shares would change between a qualified buyer and an able seller. This would involve an arms-length transaction in an unrestricted market when neither the seller nor the buyer is under compulsion to buy or sell. It is understood that both have reasonable knowledge of the business and completed their due diligence.

Our valuation is based on a multiple of EBITDA which is the common valuation used to value HVAC and related contractors.

Phase II: Blueprint

The Blueprint phase is customized for each owner, depending on your personal goals and timeline. You’ll be paired with a Navigator staff member who will act as your accountability partner, providing you with the specific training and resources your company needs to run more efficiently and maximize your value.

What are some examples of the training and resources members can expect?

Members will have full access to ClimateCare’s regular suite of weekly training calls as well as weekly one-on-one coaching; facilitated quarterly planning sessions; annual planning session. For a fee, the co-op will also make available third-party training to help members achieve their Navigator goals. Members can use their ClimateCare Reward dollars to pay for these sessions.

Areas of Training and Support

EOS implementation – CCHO staff will assist members in Blueprint with implementing EOS in their business with regular coaching and facilitation of Quarterly and Annual Planning Sessions
Targeted CPM coaching
Focused on helping members achieve the targeted revenue mix
65% Installations, 25% Demand Service, 10% WeCare MMR
At Target 55% Overall GM
50% GM for Installations, 65% GM for Demand Service, 60% for WeCare Maintenance
With the goal of achieving 15% – 20% EBITDA
Leadership and Management training

Phase III: Succession-Ready

With your Blueprint in hand, your business will be ready for you to make a transition based on your terms. That may be taking a step back and allowing others to run the day-to-day operations, changing your role within your business so you can work less, or exiting entirely. Regardless of your path, Navigator will connect you to a network of external experts to help. If your goal is to sell, ClimateCare will explore purchasing your business in part or in full.

Frequently Asked Questions

If the member’s business meets the minimum requirements to be acquired, it can be considered for acquisition as soon as an opening is available. At a minimum to be considered for acquisition, the business must be producing sufficient net profit in residential service and retrofit to carry the cost of financing the transaction, and there must be a general manager in place to run the business.

Succession is inevitable for our members. The Navigator program gives our Strategic members a high-value service that helps them optimize their valuation when it’s time to sell their business.

Regardless of your chosen succession path, our goal is that your business stays with the ClimateCare Co-op. So, once you’ve completed the Navigator program, if you decide not to sell internally or pass on your company to family, ClimateCare can potentially buy your business.

ClimateCare’s membership is aging and ultimately aging out of their businesses. Offering Navigator helps encourage these businesses to remain in the co-op as they transition through their ultimate succession and/or sale.

While we may not retain the individual member, through Navigator, ClimateCare will retain the member’s business keeping the co-op strong and supportive of all our members in future.

All ClimateCare members will be invited to go through the Navigator Analysis and Blueprint phases — with Strategic members will be able to take advantage of the Succession Ready phase.

The business blueprint will be customized to the desired outcomes and timing for the owner. All participating co-op members will benefit from Navigator’s value-building training and resources.

The co-op will consider a maximum of four businesses per year for acquisition if “succession ready” based on predefined criteria.

All members of ClimateCare will be invited to go through the Navigator analysis process. This will include a combination of a questionnaire and meetings (live or virtual) to help each member define their individual business blueprint.

Just remember, you must be a Strategic member to apply for acquisition.

Navigator can help you define what succession looks like in future — that may be passing the helm over to a family member, having a partner or key employee take over, or selling to an independent third party.

Either way, Navigator will help you understand the various employee ownership models available and map out a plan that works in your interest, so you get the most for your business in future.

Navigator can help you maximize the value of your business whether you want to sell to family, employees, the co-op or an outside buyer.

Succession is a reality for all businesses. Offering Navigator helps encourage these businesses to remain part of the ClimateCare family as they transition through their ultimate succession and/or sale.

While we may not retain the individual member, through Navigator, ClimateCare will retain the member’s business keeping the co-op strong and supportive of all our members in future.

We would like to pass as many members who are interested through Phase 1: Analysis in Q1 2024 and Phase 2: Blueprint for those members with a less-than 5-year timeline.

There is no limit to the number of companies that can enter Phase 1: Analysis.

Strategic Members who have earlier exit plans will be prioritized in Phase 2: Blueprint and Phase 3: Succession-Ready.

A maximum of four companies per year will be deemed “succession-ready” and supported through their transition.

ClimateCare is in discussion with several banks and finance companies to provide funding to acquire member companies. Once we have a few companies identified for acquisition, we will re-engage with the banks to determine who will provide the co-op with the best offer.

The co-op has created a Special Purpose Acquisition Subsidiary (HoldCo) to hold the share of the member company that the co-op acquires. Members will receive a percentage of the purchase price in cash and the remainder in special preference shares in the SPAS. Each series of preference shares will be tied to the performance of the individual company that they are issued for. Holders of the SPAS preferred shares will receive dividends based on the performance of the individual company as long as they hold their shares and will be able to cash them out at a future date based on the value of the individual company.

The co-op is well capitalized, and we currently have enough funds in reserve to undertake several acquisitions. The board has approved increasing the maximum preference shares that a member may hold from $50,000 to $75,000 starting in 2024 to bolster our balance sheet and provide additional capital for acquisitions.

The individual liability of any member company is limited to the value of the capital and preference shares outstanding.

Members are encouraged to share their thoughts with the Board

A survey will be sent out after the GM to help us understand if members want to enter Navigator, and if we have the critical mass to move forward with starting acquisitions so we can determine what the funnel of deals looks like.

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