Home Services Business Valuation
Who this is for
Owner-operators of HVAC, plumbing, electrical, cleaning, and landscaping businesses preparing to sell, and PE investors building home services roll-ups through geographic or service-line expansion.
What drives value in Home Services
- Recurring maintenance agreement revenue and agreement count
- Geographic density of service routes reducing technician travel time
- Brand recognition and Google/Yelp review profile
- Technician count, certification levels, and retention
- Residential versus commercial revenue mix
- Repeat job rate and average customer lifetime value
Valuation methods we use
Home services businesses are valued at 3–6× EBITDA or 2–4× SDE for owner-operated firms. Roll-up acquirers apply a platform premium when geographic density or service-line synergies are present. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
Typical metrics and inputs
Maintenance agreement count
Number of active recurring service agreements; the key recurring revenue driver.
Revenue per truck/technician
Annual revenue divided by field staff; productivity benchmark for operational efficiency.
Job repeat rate
Percentage of customers booking a second service within 24 months; high repeat indicates brand loyalty.
SDE margin
Seller's discretionary earnings as a percentage of revenue; key metric for owner-operated businesses.
Google review score
Average star rating and review count; directly correlates to lead generation efficiency and reduced marketing spend.
Example scenarios
Regional HVAC company with service agreements
An HVAC business with $2 M revenue, 800 active maintenance agreements, and a 22% SDE margin might be valued at 3.5–4.5× SDE in a PE roll-up.
Multi-service home services platform
A home services company offering plumbing, electrical, and HVAC with $5 M revenue and strong brand presence might trade at 5–7× EBITDA.
Frequently asked questions
What multiple does a home services business sell for?
Smaller owner-operated businesses: 2–3× SDE. Larger operations with management in place: 4–7× EBITDA. PE roll-ups may pay 5–8× for geographic scale.
Do maintenance agreements significantly increase value?
Yes — each maintenance agreement represents guaranteed future revenue. A business with 1,000+ agreements commands a meaningfully higher multiple than a call-for-service operation.
How does technician count affect valuation?
More technicians mean more revenue capacity, but retention risk increases. Buyers value a business with low technician turnover and systematic training programs.
What do PE roll-ups prioritize in home services?
Geographic density, strong online reviews, recurring agreements, and a management team that can operate without the owner present.
Is this a certified appraisal?
No. This tool provides informational estimates. For formal transactions, work with a business broker familiar with home services.
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