Trade Services Business Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
Owner-run trades businesses are usually valued on seller's discretionary earnings: EBITDA plus the owner's pay. VA values revenue that customers renew, such as service agreements and maintenance plans, at a higher multiple than one-off jobs, and lowers the multiple on work for new construction.
How businesses in this sector are valued
A buyer of an owner-run trades business replaces the owner, so VA starts from seller's discretionary earnings rather than EBITDA. Its trades model then splits those earnings. The share that comes from service agreements, maintenance plans and other work customers renew is valued at a higher multiple, which rises with the renewal rate. One-off repair, replacement and install work is valued at a multiple that rises with the size of the company and falls as work for new construction takes a larger share. Automotive businesses are routed by type: an express car wash as a membership business plus its site, a franchised dealership as the sum of its parts, and an independent repair shop on its earnings. Some trades are valued with another industry's approach: abatement and biohazard cleanup companies with the environmental services approach, inspection, facility management and security guard companies with the professional services approach, and surface finishers with the industrial manufacturing approach. Each result is checked against a discounted cash flow, comparable companies and precedent transactions.
Guides in this sector
Home Services
Value an HVAC, plumbing, electrical or other home services business on the owner's earnings, with service agreements valued as their own layer.
HVAC & Plumbing
Value an HVAC, plumbing or mechanical service company on the owner's earnings, with its service agreements valued as their own layer above one-off jobs.
Pest Control
Value a residential or commercial pest control company on the owner's earnings, with recurring service plans valued as their own layer above one-off treatments.
Landscaping
Value a commercial or residential landscaping company on the owner's earnings, with maintenance contracts valued as their own layer above installs and enhancements.
Roofing
Value a residential or commercial roofing company on the owner's earnings, with storm and new-construction work read separately from steady replacement demand.
Electrical Contracting
Value an electrical contracting company on the owner's earnings, with service and maintenance agreements valued as their own layer above project and new-construction work.
Security Systems
Value a security systems integrator on the owner's earnings, with monitoring and service contracts valued as their own layer above installation projects.
Equipment Maintenance
Value an equipment maintenance company on the owner's earnings, with preventive maintenance contracts valued as their own layer above call-out repairs.
Fire & Life Safety
Value a fire and life safety company on the owner's earnings, with inspection and monitoring contracts valued as their own layer above installation work.
Garage Doors
Value a garage door company on the owner's earnings, with repair and replacement work valued above installs for home builders.
Industrial Maintenance
Value an industrial maintenance contractor on the owner's earnings, with master service agreements valued as their own layer above one-off project work.
Commercial Cleaning
Value a commercial cleaning or janitorial company on the owner's earnings, with recurring cleaning contracts valued as their own layer above one-off jobs.
Mobile Repair
Value a mobile repair and on-site field service business on the owner's earnings, with service contracts valued as their own layer above dispatched call-outs.
Restoration
Value a water, fire and mold restoration company on the owner's earnings from a typical year, with the insurance programs and referral sources buyers check.
Specialty Cleaning
Value a specialty cleaning company, from kitchen hoods and ducts to pressure washing, on the owner's earnings, with scheduled contracts valued as their own layer.
Abatement
Value an asbestos, lead and mold abatement contractor on the owner's earnings, with licenses, insurance and backlog read the way buyers read them.
Biohazard Cleanup
Value a biohazard cleanup company on the owner's earnings, with referral sources, insurance billing and crew depth read the way buyers read them.
Facility Management
Value a facility management company on its earnings, with contract terms, self-performed work and customer concentration read the way buyers read them.
Field Inspection
Value a field inspection company on its earnings, with the owner's earnings blended in for a smaller firm and client concentration read as buyers read it.
Security Guard Services
Value a security guard company on its earnings, with contract terms, bill rates against wages and customer concentration read the way buyers read them.
Surface Finishing
Value a plating, anodizing, powder coating or other finishing company on its earnings, with its equipment and environmental permits as buyers see them.
Automotive Services
Value a car wash, repair shop or franchised dealership. VA's automotive model values each type on its own terms: members, earnings or the sum of its parts.
Auto Repair
Value an independent auto repair shop on its earnings, with comparable companies, precedent transactions and a discounted cash flow weighed together.
Collision Repair
Value a collision repair or body shop on its earnings, and see how insurer programs, manufacturer certifications and capacity shape what buyers pay.
Heavy Truck Repair
Value a heavy truck and trailer repair shop on its earnings, with fleet accounts, technician depth and equipment read the way buyers read them.
Tire Dealer
Value an independent tire dealer on its earnings, with service work, commercial accounts and inventory read the way buyers read them.
Towing
Value a towing and roadside assistance company on the higher of its earnings before rent and what its trucks would bring in an orderly sale.
Value your business 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.
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 a trades business valued?
Usually on seller's discretionary earnings times a multiple. VA values the part of earnings that comes from renewed agreements at a higher multiple than one-off work, so two companies with the same earnings can be worth different amounts.
Why do service agreements raise the value?
Revenue that customers renew each year is likely to stay after the owner leaves, so buyers pay more for it. In VA's trades model the multiple on that share of earnings rises with the renewal rate.
Does work for new construction lower the value?
It lowers the multiple on one-off work, because building activity rises and falls with the economy. Repair, replacement and service work holds up better when building slows.
My trade has no guide yet. Can I still run a valuation?
Yes. Any owner-run trades business runs on the home services model today. Choose Home Services in the app: it asks for your recurring contract revenue and your customer retention rate, which set the agreement layer.
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Building & Construction
How contractors, engineering firms, building products makers, quarries and equipment rental companies are valued, and what moves the value.
Transportation
How trucking, air charter, marine, rail, cold chain and warehousing companies, freight brokers and distributors are valued, and what moves the value.
Energy & Infrastructure
How solar, wind and storage projects, regulated utilities, data centers, mines and environmental services companies are valued, each on its own model.
Real Estate & Hospitality
How apartment buildings and self-storage facilities are valued on net operating income and cap rates, and where hotel and property managers fit.
Food & Agribusiness
How farms and agricultural businesses are valued: land at market, biological assets and the operating business, without counting the same acres twice.
Aerospace & Defense
How aerospace and defense manufacturers, space hardware makers and government services contractors are valued, and what moves the value.
Last reviewed September 25, 2026 against VA's valuation models.