Industrial Maintenance Contractor Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
An industrial maintenance contractor is usually valued on seller's discretionary earnings: EBITDA plus the owner's pay. VA values master service agreements as their own layer, at a higher multiple than turnarounds and projects, and gives a larger contractor a higher base multiple.
Who this is for
Owners of plant maintenance, millwright, conveyor and material handling service contractors preparing to sell, bring in a partner or plan succession, and buyers who need master service agreement work separated from turnarounds and projects.
How is an industrial maintenance contractor valued?
VA values an owner-run industrial maintenance contractor on seller's discretionary earnings: EBITDA plus the owner's pay, because a buyer replaces the owner. Master service agreements and recurring plant maintenance are valued as their own layer, at a higher multiple than one-off work, and that multiple rises with the share of customers who renew. Turnaround and project work is valued at a lower multiple that rises with the company's size and falls as work for new construction takes a larger share. Comparable companies, precedent transactions and a discounted cash flow check the result, and an asset floor keeps it above what the company's own assets would recover. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
What drives the value of an industrial maintenance contractor?
- Master service agreements with plants, and how long those customers have stayed
- The share of work that recurs under agreements rather than one-off turnarounds and projects
- Craft labor: skilled millwrights, welders and electricians, and how the company keeps them
- Safety record, which many plants check before letting a contractor on site
- Customer concentration across plants, industries and parent companies
- The size of the company, since larger service businesses are valued at higher multiples
What lowers the value of an industrial maintenance contractor?
- Most of the revenue coming from one plant or parent company
- Turnaround and project work that has to be won again each year
- Shortages of skilled craft labor
- A safety record that plants would question
How much is an industrial maintenance contractor worth? A worked example
Agreements in a larger contractor
An industrial maintenance contractor with $8 M of revenue, $900 K of EBITDA and $200 K of owner pay has $1.1 M of seller's discretionary earnings, enough for the trades model's higher base multiple of 3.75×. Master service agreements bring in 50% of revenue and 85% of those customers renew. The model values the agreement share of earnings at 5.45× and the rest at 3.75×, about $5.06 M before debt. With the same earnings from projects alone, it comes to about $4.13 M.
Illustrative figures from the industry model alone. A full report blends it with a discounted cash flow, comparable companies and precedent transactions.
Value your industrial maintenance contractor in under 10 minutes
- 1.Upload your financial statements, or type the figures in.
- 2.Confirm the add-backs and the industry details the model asks for.
- 3.Get a valuation range, the methods behind it and a PDF memorandum.
Which numbers matter most?
Seller's discretionary earnings
EBITDA plus the owner's own pay and perks. VA uses the pay you enter; for a small owner-run company with no figure entered, it estimates a working owner's salary.
Agreement revenue
Revenue under master service agreements and recurring maintenance. VA values it as its own layer, separate from projects.
Contract renewal rate
The share of agreement customers who renew each year. The multiple on the recurring layer rises with it.
Company size
Seller's discretionary earnings set the base multiple: in VA's trades model a larger company starts from a higher one.
Safety record
The incident rate plants use to approve contractors. Buyers check it because a poor record can close the gate to existing customers.
What do you need to value an industrial maintenance contractor?
- Profit and loss statements and balance sheets, ideally for the last three years
- Figures for the current year to date
- A list of add-backs: the owner's pay and perks, and any one-off costs
- Loan and lease balances
- A list of master service agreements, with start and renewal dates
- Revenue split between agreement work, turnarounds and projects
- Your safety record and craft headcount
Example scenarios
Agreements against turnarounds
Two contractors earn the same. One works in the same plants every week under master service agreements; the other chases turnarounds and shutdown projects. VA values the first higher, because its agreement layer is priced at the higher multiple.
One plant, most of the revenue
A contractor earns most of its revenue at a single plant. The model values the earnings entered, and a buyer will still weigh what happens if that plant changes contractors or closes.
Further reading
How to Value an HVAC Business in 2026: SDE and EBITDA Multiples
HVAC businesses sell for about 2x to 3.3x SDE for small shops and 5x to 9x EBITDA for larger firms. See 2026 multiples by size and what drives the number.
Is a Business Worth 3 Times Profit? When It Is 2x, When It Is 5x, and Which Profit Counts
Is a business worth 3 times profit? Often, if the profit is SDE. When 2x or 5x applies instead, which profit counts, and what diligence does to the price.
How Much Is a Business Worth With $500,000 in Sales? The Revenue Ladder From $100K to $3 Million
Revenue does not set a price, earnings do. See what businesses at $100K, $200K, $300K, $500K, $1M, $2M and $3M in sales are worth at 10%, 20% and 30% margins.
Frequently asked questions
How is an industrial maintenance contractor valued?
On seller's discretionary earnings, EBITDA plus the owner's pay, with master service agreements valued as their own layer at a higher multiple than projects. The base multiple rises with the size of the company.
Do master service agreements raise the value?
Yes. VA values agreement revenue as a separate layer, and the multiple on it rises with the share of customers who renew. Enter the agreement revenue and your renewal rate to see the effect.
Does craft labor affect the value?
It does not change the model's multiple, but buyers look hard at how the company keeps its skilled trades, because the agreements depend on having the people to do the work.
Does one large plant lower the value?
The model values the earnings you enter. Buyers still discount a contractor that depends on one plant, and the precedent transactions in the report show how they price that.
What if I pay myself less than a manager would cost?
Seller's discretionary earnings add back your own pay, so the level you pay yourself does not change that figure. A buyer who hires a manager will still look at EBITDA after a market salary, which is why the EBITDA-based checks are shown too.
Is this a certified appraisal?
No. This is an informational estimate. A bank loan, a partner buyout or an estate matter may require a certified business appraisal, which this does not replace.
Terms used on this page
- Seller's discretionary earnings (SDE)
- EBITDA plus the owner's own pay and perks. It shows what the business earns for one owner who works in it, and it is the figure most buyers of small owner-run businesses price.
- Add-backs
- Costs added back to reported earnings because a new owner would not bear them: personal expenses run through the business, one-off costs, or owner pay above what the role would cost to fill.
- Recurring revenue
- Revenue that repeats without a new sale, such as maintenance agreements, service plans or contracts customers renew.
- Renewal rate
- The share of customers on agreements or plans who renew each year.
- Valuation multiple
- The number earnings are multiplied by to reach a value. It rises with how durable the earnings are and how easily a new owner can keep them.
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Last reviewed September 25, 2026 against VA's valuation models.