Investment CaseQuestion 1 of 4
Read the scenario below and answer the questions
Company Snapshot
AirParts Co. distributes replacement HVAC parts to contractors.
- •LTM Revenue: €200M
- •LTM EBITDA: €20M (10% margin)
- •Customers: ~5,000 HVAC contractors
- •Customer concentration: Top 10 customers = 25% of revenue
- •Differentiation claims:
- •24-hour delivery in most regions
- •Proprietary SKU cross-reference database (helps match parts fast)
- •Private label parts (higher margin: ~30% gross margin vs 20% for branded)
Market Inputs
- •Installed base: 10M HVAC units
- •Average annual parts spend: €120 per installed unit
- •Installed base growth: 2% per year (steady)
Pricing Scenario
Management proposes a 3% price increase. Estimated volume elasticity is -0.5.
Numeric AnswereasyTAM
Using the case inputs, what is the TAM for HVAC replacement parts (in € billions)?
Enter TAM in € billions (e.g., 0.9 for €0.9B)
Submit your answer to continue