HVAC, plumbing, electrical, and trade businesses are prized for recurring revenue, but deal quality lives in the technicians. This guide covers the benchmarks buyers use and the red flags to check before making an offer.
Typical field-services valuations run 2.5x to 4.0x SDE; recurring service agreements push toward the high end, one-time install work pulls it down. Key factors: technician licensing and turnover risk, service-contract renewal rates, fleet age, commercial versus residential revenue mix, and whether the owner's personal relationships carry the commercial accounts. Before trusting the broker's numbers, verify service-agreement revenue is contractually recurring, check license transferability in the state, and test whether revenue follows the owner or the brand.