Podcast Summary: Owned and Operated — Episode #235

Title: He built a $100M HVAC business, here’s how
Release Date: August 21, 2025
Host: John Wilson
Guest: Chad Peterman, President of Peterman Brothers

Episode Overview

This episode of Owned and Operated features a masterclass on home service business scaling with Chad Peterman, President of Peterman Brothers—a rapidly growing HVAC, plumbing, and electrical service provider. Chad unpacks how his company grew from $20M to over $100M in just four years, discussing strategies for market expansion, location management, operational excellence, and building culture within a growing multi-location business.

Key Discussion Points & Insights

1. The Growth Story of Peterman Brothers

• Origins & Expansion:

  • Family business started in 1986 by Chad’s father.
  • Chad joined in 2011; company shifted from commercial/multifamily to all-residential (02:38).
  • Now at ~$110–$120M annual revenue, with 10 locations across IN, MI, OH, and KY.

• Adding Services:

  • Although separate, they have expanded from HVAC into plumbing and electrical.
  • Roofing is kept as a separate entity.

2. Licensing & Market Nuance

• Multi-State Licensure:

  • Created an internal licensing program: employees paid to obtain licenses in various states, with monthly stipends for license holders.
  • Redundancy is key—multiple employees hold each required license (04:03).

• Crossing Borders:

  • Shared how crossing the Ohio River into Kentucky revealed different energy standards and nuances (03:33).

3. Location Strategy: Acquisition vs Greenfield

• First Expansion (Lafayette, IN, 2018):

  • Not a glamorous start: “We just went for it. It was very messy at the beginning…” —Chad Peterman [05:37].
  • Early expansion built the blueprint for future locations.

• Current Model:

  • Early expansions were a mix; now, greenfielding (building from scratch) is preferred over acquisitions for better culture fit and process control, despite slower starts.
  • Acquisitions often involve “culture turnarounds,” which are challenging (08:20).

• Location Picking Logic:

  • Focus on “tier two” markets (not major metros) that can support a $15-20M branch without heavy infrastructure (07:20).

• Launching a Branch:

  • Find a strong leader first, then recruit one technician per trade and an HVAC install crew; no excavation at launch.

4. Rolling Out Multi-Trade Operations from Day One

• All-In Approach:

  • Now launching all three trades (HVAC, plumbing, electrical) in new locations simultaneously for synergies and stability (11:03).

• Excavation Exception:

  • Remains centralized due to complexity and talent scarcity—only expanded when feasible, managed by Chad’s brother (12:35, 13:46).

5. Centralization vs Local Autonomy

• Centralized Back Office:

  • Most branch infrastructure is lean (manager, dispatcher, warehouse coordinator at $9M branches)—all major call center, marketing, and operational processes centralized (18:18).

• Branch Managers:

  • Responsible for daily operations, drive local hiring (with support from central recruiters), and coordinate closely with marketing (19:40).

• Marketing Complexity:

  • Lead generation and capacity balancing is a challenge with 10 locations and 3 trades per branch (21:29).

6. Future Growth & Vertical Integration

• Ancillary Service Expansion:
  • Chad sees opportunity to add services like water mitigation and duct cleaning, especially via acquisition, given the existing customer base and lead synergies (22:20, 25:09).
  • “Once you get a customer base... just pick something and shoot out a text message and I’m sure you can do...” —Chad Peterman [25:09].

7. “The Peterman Way” and Training

• Onboarding:
  • All new hires start onboarding in Indianapolis every other Monday for consistency (15:22).
  • Dedicated “Direct Field Support” virtually rides with new techs 30–60 days to ensure standards and support.
  • “That has been a really big win for us.” —Chad Peterman [15:22].

8. Culture, Leadership, and Communication

• Internal Podcast Use:

  • Chad uses his company podcast to broadcast leadership, culture, and operational messages, originally for internal distribution (33:06).
  • “Half the episodes were just me talking to our team. They all are out in their truck every day. So what’s the easiest way to consume that content? We said, well, we’ll just put it on a podcast.” —Chad Peterman [33:06].

• Recruitment Tool:

  • Many candidates listen to episodes before interviews; helps set cultural expectations (35:00).

• Solving Communication at Scale:

  • Direct communication from top leadership (often via Zoom) to all field staff prevents “telephone game” breakdowns as the company scales (52:21).

9. Operational Excellence Over Flashiness

• Staying Focused:
  • Success comes from nailing operations, not “fandangled” tech or latest trends (48:57).
  • “All these businesses are built on operational excellence... If all you’re focused on is these fandangled things, you lose sight of the operational piece, and that’s the piece that makes these businesses successful.” —Chad Peterman [48:57].

10. Organizational Structure & Challenges

• Scaling Leadership:

  • In most branches, branch managers oversee all trades. Specialized leaders (e.g., Install, Sales, Excavation) are centralized (41:35).
  • Leadership is adjusted based on the strengths of individuals and geographic proximity of locations.

• Minimum Viable Branch Size:

  • Aim for $3.5M in the first 12 months for greenfield; $7M+ is considered sustainable for existing branches (31:36).

11. Challenges and Next Steps

• Upcoming Hurdles:

  • “Ironing out the continued expansion and getting into a rhythm with it.” —Chad Peterman [45:33].
  • Marketing for 10 locations and 3 trades each; efficiently allocating budgets and keeping brand consistent everywhere is complex.

• AI Adoption:

  • Chad is cautious—monitoring developments but wary of shiny object syndrome (46:41).

12. Advice & Memorable Reflections

• On Location Clustering:

  • Clustering branches within an hour enables pooling of install labor and rapid response—though it risks parasitism; designing routes and networks as clusters/links is more effective (38:30).

• On Leadership Scaling:

  • Communication and clarity are biggest pain points as layers are added; proactively addressing them with direct, top-down messaging is key (52:21).

Notable Quotes & Memorable Moments

• On First Branch Launch:
  “We just went for it. It was very messy at the beginning…”
  — Chad Peterman, [05:37]

• On Acquisitions vs. Greenfield:
  “If I start from scratch, I don’t have to untrain any bad habits...”
  — Chad Peterman, [08:36]

• On Market Picking:
  “We’re not looking to build a $20 million company in Lafayette...I can still support it and I don’t have to put a bunch of infrastructure...”
  — Chad Peterman, [07:20]

• On Building a Single Brand:
  “For me it’s really building what I think to do be a somewhat unique model in that it’s a singular brand, multi-location...across the Midwest.”
  — Chad Peterman, [30:22]

• On Operational Excellence:
  “All these businesses are built on operational excellence. If all you’re focused on is these fandangled things, you lose sight of the operational piece and that’s the piece that makes these businesses successful.”
  — Chad Peterman, [48:57]

• On Internal Podcast as Communication Beacon:
  “It kind of serves as that cultural beacon of the company, especially when you got layers and layers of management.”
  — Chad Peterman, [35:00]

• On Communication at Scale:
  “When we roll out a change...our COO does it and he crafts the message and then we just have a meeting. Everyone’s on Zoom, everybody’s there and he is the one who delivers the message...it breaks down all the way through.”
  — Chad Peterman, [52:21]

• On Onboarding:
  “All of our people for onboarding come to Indy...That has been a really big win for us is having somebody there that’s like curating the onboarding as they’re actually running calls.”
  — Chad Peterman, [15:22]

Timestamps for Key Segments

• Introduction to Chad & Peterman Brothers: [02:38]
• Licensure & State Nuances: [04:03]
• First and Subsequent Expansions: [05:37]
• Greenfield vs Acquisitions: [08:20]
• Strategy on Launching Trades: [11:03]
• Centralized Operations: [18:18]
• Marketing & Lead Challenges: [21:29]
• Vertical Expansion Ideas (Water Mitigation, Duct Cleaning): [22:20], [25:09]
• Onboarding Process: [15:22]
• Internal Podcasting & Cultural Alignment: [33:06], [35:00]
• Pooling Labor & Cluster Model: [38:30]
• Leadership & Structure: [41:35]
• Challenges Ahead & Marketing Complexity: [45:33]
• AI Adoption Philosophy: [46:41]
• Operational Excellence Focus: [48:57]
• Communication Tactics: [52:21]

Closing

Chad Peterman offers a transparent, detailed, and practical blueprint for hyper-growth in the residential service trades—emphasizing operational discipline, deliberate leadership communication, local autonomy within centralized guardrails, and a culture-first approach to large-scale expansion.

Connect with Chad:

• LinkedIn: Chad Peterman
• Email: chad@petermanHVAC.com

Find more episodes and resources: ownedandoperated.com