Last updated: 2026-04-13
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Home services businesses typically need $500K to $1M in annual recurring revenue to attract serious buyers. However, the real threshold is $250K minimum for smaller PE firms and search funds, while strategic acquirers and larger PE firms often target $2M+. What matters more than the absolute number is revenue predictability, growth rate, and customer retention—a $400K recurring revenue business with 90% customer retention and 15% YoY growth will command more interest than a $1.5M business with 60% retention and flat growth. For a deeper look, see our guide on recurring revenue and business valuation the connection most owners miss. For a deeper look, see our guide on maximize your pool service business valuation with recurring revenue.
Below $250K in recurring revenue, you’re typically outside institutional buyer interest. Most PE firms have minimum deal sizes of $1M-$3M EBITDA, which requires roughly $2M-$3M revenue depending on margins. However, smaller capital partners—search funds, independent PE investors, and family offices—will seriously evaluate businesses at $250K-$500K recurring revenue if the fundamentals are sound. For a deeper look, see our guide on selling a business with recurring revenue what you need to know. For a deeper look, see our guide on valuing recurring revenue vs project revenue.
Home services businesses in this range that sold recently include:
Buyers care less about total revenue and more about the revenue quality. Recurring contracts—maintenance plans, service agreements, membership programs—reduce buyer risk. A $1M business with 70% recurring revenue at 85% retention is more attractive than a $1.5M business where 60% is one-time project work.
In home services, strong recurring revenue typically means:
Once you reach $1M+ in recurring revenue with healthy margins (30%+ in most home services), you unlock access to larger PE firms, strategic buyers, and multiple competing offers. This range typically generates $300K-$500K EBITDA, making the deal economically interesting to institutional buyers with $5M-$20M deployment capacity.
A $600K recurring revenue business with 40% EBITDA margins and 20% YoY growth can sell for $1.8M-$2.1M. The same $600K business with 20% margins and flat growth might only command $900K-$1.2M. Buyers apply different multiples based on quality, not just size.
If you’re below $500K recurring revenue, focus on locking in long-term contracts and improving retention before attempting a sale. Buyers will discount your valuation heavily for revenue uncertainty. If you’re between $500K-$1.5M, you’re in active market territory—most PE firms and strategic buyers will evaluate you. At $1M+, you’ll typically see multiple offers. When you’re ready to explore options, CT Acquisitions connects home services owners with vetted capital partners matched to your revenue size and business profile.
Not equally. Buyers apply lower multiples to one-time project revenue (typically 2-3x EBITDA) versus recurring revenue (4-6x EBITDA). If your business is 60% recurring and 40% projects, expect valuation math that heavily weights the recurring portion. To maximize sale price, shift your revenue mix toward contracts before you sell.
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About the Author
Christoph Totter is the founder of CT Acquisitions, a buy-side partner headquartered in Sheridan, Wyoming. We work directly with 76+ buyers — search funders, family offices, lower middle-market PE, and strategic consolidators — including direct mandates with the largest home services consolidators that other intermediaries can’t access. The buyers pay us when a deal closes, not the seller. No retainer, no exclusivity, no contract until close. Connect on LinkedIn · Get in touch