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How to Sell Your Home Services Business

The complete owner’s guide — valuations, buyer types, deal structures, and what the process actually looks like from first conversation to wire transfer.

Last updated: April 2026 · 18 min read

If you’ve built an HVAC, plumbing, roofing, pest control, electrical, or landscaping company doing $1M or more in annual profit, there are people who want to buy it — and they’ll probably pay more than you think. This guide covers everything: what your business is actually worth based on current transaction data, the five types of buyers competing for home services companies right now, how deals get structured, and what the process looks like from the first phone call to the wire hitting your account.

The Market Right Now

Home services is one of the most active M&A markets in the lower middle market, and the data backs that up. HVAC deal volume was up 31.8% in 2024 compared to the prior year. Pest control M&A has been running hot for even longer, with PE firms now accounting for roughly 60% of all transactions in the vertical. Electrical contractor acquisitions rose 13% in 2024, driven by data center buildouts, grid modernization, and EV infrastructure demand.

But it’s not just PE anymore. Family offices are entering the space because home services generates stable, recession-resistant cash flow. Search funds — individuals backed by investor groups who buy and operate one business — are specifically targeting $1M–$3M EBITDA home services companies. Strategic acquirers are adding trade lines and new geographies through acquisition because it’s faster than organic growth.

What Home Services Businesses Are Actually Worth

Valuations vary meaningfully by trade, and the differences aren’t random. They’re driven by three things: how predictable your revenue is, how dependent the business is on you personally, and how easy it is for a buyer to grow the business after they buy it.

The Single Biggest Driver: Recurring Revenue

If there’s one number that moves your multiple more than any other, it’s the percentage of your revenue that recurs without you having to go find it again. Every 10 percentage point shift from project-based revenue toward recurring contracts adds approximately 0.5x to 1.0x to your EBITDA multiple. That means an HVAC company doing $2M EBITDA with 20% service agreements might trade at 4x ($8M), while the same company with 50% service agreements might trade at 5.5x ($11M). Same size, same profit, $3M difference.

Who the Buyers Actually Are

Not all buyers are the same, and the differences matter for your outcome, your team, and your life after the sale.

PE Platform Builders

These are firms assembling multi-location home services companies through acquisition. They buy a strong initial company (the “platform”), then bolt on smaller ones to build scale. You’ve heard of some: Apex Service Partners, Wrench Group, Sila Services. Platform deals command 5x–8x+ EBITDA. They typically want the founder to stay 1–3 years and offer equity rollover.

Family Offices

Private investment vehicles for wealthy families. No fund timeline — they can hold a business indefinitely. Less aggressive on cost-cutting. More flexible on deal terms. Competitive on price (4x–7x EBITDA). Best for founders who care about culture preservation and want patient capital.

Strategic Acquirers

Larger home services companies buying smaller ones to expand geographically or add trade lines. An HVAC company buying a plumbing operation to become multi-trade. Fast closings, more cash at close, may or may not want the founder long-term.

Search Funds

Individuals who raise capital to buy and operate one business. They become the CEO. Target $1M–$3M EBITDA. Often the most founder-friendly buyer because they’ll live in the business every day. They care deeply about team and culture because it’s their daily life.

The Five Things That Destroy Value

• Talking to only one buyer. A single buyer has zero incentive to offer their best price. Having 2–3 qualified buyers creates tension that pushes offers up by 15–30%.
• Messy financials. If a buyer can’t verify your earnings, they’ll assume you’re overstating them. Clean books aren’t about compliance — they’re about confidence.
• Selling when you’re burned out. Buyers pay for momentum. A business that’s been declining because the owner checked out gets a lower multiple.
• Ignoring the tax implications. Asset sale vs. stock sale can swing your after-tax proceeds by hundreds of thousands. States range from 0% (Texas, Florida) to 13.3% (California).
• Skipping legal review. The purchase agreement is 50–100 pages of financial consequences. Use an M&A attorney, not your general business lawyer.

“We talk to founders who’ve spent 15 or 20 years building something real. They don’t want a cold process — they want to know that whoever buys their business is going to take care of their people. That’s what we help them figure out.”

— Christoph, Managing Partner, CT Acquisitions

How CT Acquisitions Fits In

We’re an M&A advisory firm that specializes in home services. We maintain relationships with 40+ capital partners — PE firms, family offices, strategic acquirers, and search funds — who are actively buying HVAC, plumbing, roofing, pest control, electrical, and landscaping businesses.

When a founder comes to us, we have a conversation, understand what they’ve built and what they want, and then make introductions to buyers who fit. Not every buyer — the right buyers. Your business is never listed publicly. Every introduction is under NDA. Our fee is a success fee at closing — if no deal happens, you pay nothing.

Frequently Asked Questions

HVAC · Plumbing · Roofing · Pest Control · Electrical · Landscaping

• What Is My Business Worth?
• How to Increase Your Business’s Value
• Who Buys Home Services Companies?
• The Owner’s Exit Checklist
• What Happens After You Sell