Likely Buyers
- Larger service companyWants more technicians, more routes and a maintenance customer list it can grow.
- Private equity backed roll upLooks for recurring service revenue and a crew that stays after the sale.
- Lead technician with SBA backingKnows the work and needs a company that does not depend on the owner for every call.
Why buyers like trades
Heating, cooling and plumbing are necessary services, not trends. People call when something breaks, which gives buyers confidence that demand will return.
Price starts with the cash a working owner could take home, multiplied by roughly two to three for most small companies. Larger firms with managers in place are priced on EBITDA.
Recurring work lifts the price
Maintenance agreements are the gold standard. A customer who renews every year is worth more than one who calls once, because the buyer can count on the revenue.
Track how many agreements you have, how often they renew and what they bring in. Replacement and new construction work is valued lower since it rises and falls with the building cycle.
The owner problem
Many trade owners are also the best salesperson and the best technician. If customers ask for you by name, buyers worry they will leave when you do. Training a lead technician and a service manager before listing helps.
Licenses, trucks and callbacks
Buyers check that licenses are in good standing and that someone on staff holds them. They also look at the trucks, tools and callback rates. High callbacks suggest quality problems that cost money.
Technicians are scarce. A buyer wants to know their pay, their tenure and whether any plan to leave.
Before you list
- Revenue split between service, agreements and installs
- A count of active maintenance customers and renewal rates
- A vehicle and tool list with age and any loans
- A roster of technicians with pay and years on the job
Read how asset sales divide the price and what you may owe after closing in the tax clearance guide. Then see what your company is worth.