I Have $5M. Do I Buy an HVAC Company or a Security Business?

If someone handed you $5 million, would you buy an HVAC business or a security alarm company? In this episode of Owned and Operated, we break down the $5M business acquisition decision — comparing recurring revenue, profit margins, and which home service business is actually worth buying in 2026. We dive deep into HVAC vs. security/alarm: why "sticky" monthly recurring revenue (MRR) in security isn't the same as HVAC memberships, and which recurring revenue business model actually builds long-term value. You'll learn where security wins in commercial vs. residential dynamics, what private equity is buying in the current roll-up wave, and why commercial fire alarm installation and security keeps attracting acquisition dollars. Plus — why geography matters more than you think (especially in growth markets like Texas), how AI cameras and tech cycles are reshaping the security industry, and the licensing moats that make fire alarm and security businesses hard to compete with. We also compare hiring and seasonality in HVAC vs. other trades, and whether DIY home security systems are a real threat. Whether you're looking to buy a business, start an HVAC company, or build a service business with recurring revenue — this episode gives you the playbook. ⏱️ Timestamps: 00:00 $5M Bet: HVAC vs Security — Why Recurring Revenue Wins 07:35 Commercial vs Residential Security: RMR Breakdown 18:35 Tech Cycles & Labor Realities: AI Cameras 29:46 Hiring & Seasonality: Why HVAC Staffing Isn't as Brutal as Landscaping 33:50 Licensing Moats in Security & Fire (The Power of the Fire Marshal) 39:35 DIY Home Security: Real Threat or Overhyped? 📋 Extra Special Thanks to Service Scalers! We've been partnering with Service Scalers to maximize our Local Service Ads (LSAs) and optimize our Google My Business profiles. Want to learn how Service Scalers can do the same for you? 🔗 Check Them Out Here: https://servicescalers.com/free-marketing-giveaway?utm_source=youtube&utm_medium=referral&utm_campaign=pros_12mo_free 📋 Shoutout to Avoca AI! Looking to train your call center and improve technician performance? Avoca AI helps teams identify issues. 🔗 Schedule a demo: https://www.getavoca.ai/partners/oao 📞 Sponsored by Quo — The Modern Business Phone for Service Pros Missed calls mean missed business. Quo is the AI-powered phone system that logs every call. 🎁 Start your 7-day free trial and get 20% off your first six months at https://quo.com/owned 🎙️ Hosts: John Wilson — https://x.com/WilsonCompanies Guests: Steven + Colin — https://www.entryandexit.co/ #HVAC #SecurityBusiness #HomeServices #BusinessAcquisition #RecurringRevenue #HVACBusiness #FireAlarm #ServiceBusiness #Entrepreneur #SmallBusiness #Acquisitions #PrivateEquity #CommercialServices #Trades #HVACPodcast #BusinessGrowth #Plumbing #Entrepreneurship