The Snowball Effect of Building Great Relationships

Entering a new market presents both risk and opportunity for any business. That’s why Service Logic decided to expand its presence to California in 2021 after several years of careful consideration by company leadership.

Two years after its first acquisition in the state, Service Logic now owns seven commercial HVAC companies in California — covering markets from Sacramento to San Diego.

So how does Service Logic make such a successful leap into a highly competitive landscape?

According to Ryan Krahl, chief acquisition officer, it starts with a commitment to transparency and authenticity fueled by the proven value proposition behind Service Logic’s acquisition model.

“California was an untapped market for Service Logic, which required us to be selective and ensure we were buying the right companies and representing ourselves as a trustworthy buyer,” Krahl said. “When you do that well, other owners in that market who might be considering selling see the value in becoming part of Service Logic, too. From there, the snowball effect starts to take shape.”

Thus, when Krahl and the team at Service Logic began conversations with Fred Murray, owner of Accel Air Systems in Santa Clara, California, they soon knew they had found the perfect fit to activate the company’s acquisition strategy in the Golden State.

Building a Coast-to-Coast Network

Since opening in 2003, Accel Air Systems has been a leading provider of HVAC services to the San Francisco Bay Area commercial building sector. Led by Fred Murray, the mechanical contracting firm specializes in HVAC maintenance, service, retrofit, repair and new construction.

Following nearly two decades as a successful, independent operator, Murray began to evaluate opportunities to sell his business. After reviewing his options and completing a thorough due diligence process, Murray signed the purchase agreement with Service Logic in September 2021.

“As I was getting closer to the end of my career, I wanted financial security for my family — and I also wanted security for my company and my employees moving forward,” Murray said. “I had never sold a business before, but after getting to know Ryan and his team, what really stood out to me was the professionalism and integrity of everyone I interacted with during the process.”

Once the deal closed, Accel Air Systems officially became “A Service Logic Company,” but everything else remained the same for Murray and his employees. That autonomy to manage your business as you see fit is one of the biggest reasons so many commercial HVAC company owners have chosen to sell to Service Logic over the past 20 years.

“What do you want your business to look like post-transaction?” Krahl said. “Meaning, do you want a buyer who is strong-armed in their management of the business and institutes processes full of red tape? Because that’s not the Service Logic model.”

“If you want to keep running your business as you always have — but with the added support of capital, training and an industry leading group of peers — then we might be a great fit.”

After finding the right fit with Accel Air Systems, Service Logic purchased two other Santa Clara–based HVAC companies over the next 18 months. This is when the snowball effect begins to take place, as word-of-mouth helps share the value of joining the Service Logic family.

“Nothing during the sales process gave me pause,” Murray said. “We built a good relationship and worked through any challenges. I would describe the team at Service Logic as courteous, professional and respectful.”

The Logical Approach to Acquisitions

Service Logic’s strategic yet rapid expansion in California is a great example of the company’s methodology of finding like-minded business owners and acquiring their companies when they complement the existing investment in that market. Sometimes that company becomes a Service Logic business unit and the flagship brand in that market, as was the case with Accel Air Systems.

Once that flagship brand exists and Service Logic continues to buy other regional HVAC companies, those additional companies are often incorporated into the flagship brand, building a stronger and more unified company.

“Through our acquisition model, we’ve experienced that when you have size and scale in a market, it’s a competitive advantage on all levels,” Krahl said.

By integrating the expertise and capabilities of acquired companies, Service Logic enhances its overall portfolio. This diversification not only allows the company to meet a broader range of client needs but also strengthens its position in the market.

The ability to provide comprehensive HVAC solutions sets Service Logic apart as a one-stop shop for commercial clients in the following industries:

• Commercial

• Data center/mission critical

• Healthcare

• Hospitality

• Industrial/manufacturing

Investing in a Skilled Workforce

When companies such as Accel Air Systems join Service Logic, they tap into a wealth of additional benefits, from more affordable healthcare to access to training and talent development.

“The competition for skilled labor is the most difficult thing we all face in today’s environment — and it’s not just pay that drives people’s decisions,” Krahl said. “They want to be trained. They want to be able to work on different types of equipment. They want to be invested in as an employee. These are all opportunities that exist as a member of the Service Logic family.”

Learn more about the training and talent development opportunities available for all Service Logic employees.