Aggressive Growth, Zero Guardrails = Bankruptcy

A once-thriving HVAC co. crumbles under $250M in debt

What’s up,

Is rapid growth always a good thing?

For Air Pro Solutions, the answer turned out to be a painful no. Their $250M collapse and subsequent bankruptcy shows what can happen when ambition outpaces planning—and when flashy moves like NFL sponsorships take priority over financial fundamentals.

Below, I unpack what led to one of the biggest HVAC failures in history. ⬇️

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Aggressive Growth with No Guardrails

Air Pro’s rise wasn’t just fast—it was reckless.

The company launched in 2017 and quickly ballooned across 8 states, fueled by low-interest debt and a wild acquisition spree. But there was no integration plan, no operational discipline. Just unchecked ambition.

Sponsorships, Not Systems

They spent big. BIG like Miami Dolphins cheerleaders at acquisition parties. But they didn’t spend smart.

  • Bought underperforming companies with minimal due diligence

  • Paid inflated multiples (some up to 18x EBITDA)

  • Ignored the complexity of multi-location integration

Debt-Fueld Expansion Meets Harsh Reality

Air Pro stacked up $300 million in obligations, hoping scale would solve everything. But rising interest rates, failed acquisitions, and low-margin installs killed the dream.

Revenue Couldn’t Keep Up With Debt

Cash flow cratered. Their 2023 EBITDA couldn’t service what they owed.

  • Term loans and revolving credit made up most of the $300M

  • Integration misfires crushed cash flow across locations

  • Some branches were losing $500K/month

Integration Isn’t Plug and Play

Acquisitions don’t run themselves.

  • Operators didn’t stick.

  • Founders walked.

  • And leadership didn’t have the bandwidth—or the know-how—to turn it around.

Strike one, strike two, strike three.

Founder Energy Couldn’t Scale

Unlike owner-led teams, there was no “do whatever it takes” mindset.

  • Seller rollups often fell flat with minimal follow-through

  • Technical debt from failed service transitions piled up

  • Construction-first businesses couldn’t pivot fast enough

The Fallout Is Still Spreading

Air Pro filed Chapter 11, and now it's being auctioned off in 11 parts. Contracts include clauses like “40% discount if staff leave post-close”—a sign of how shaky the situation is.

A Cautionary Tale for Buyers and Sellers Alike

This wasn’t just bad luck. It was bad planning.

  • Sellers rolled equity expecting second bites—and lost big

  • Buyers didn’t ask the right questions before selling

  • The PE playbook failed in a high-rate, low-margin environment

Remember This

Air Pro’s collapse is a brutal reminder that speed without strategy, and debt without discipline, leads to disaster.

That’s the summary, but for more details, you’ll want to watch our most recent podcast episode ⬇️ 

News, Resources, and More

🎙️ Podcast: Earlier this week we sat down with Eddie Griffin, a contractor who acquired Brown Roofing and has grown it to $20M+ in annual revenue.

📈 OAO Pro has only been live for a week, and it’s already an incredible peer group where home service owners connect, troubleshoot, and scale together.

✉️ Homepros is an email newsletter covering the HVAC industry's biggest news and trends in just a three-minute read, for free.

Shout Out to Avoca

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See ya next time,

John

Disclosure: This newsletter includes sponsored content. However, all opinions expressed are entirely my own.

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