Buyer's guide
How to Buy a Home Services Business
Home services — HVAC, plumbing, electrical, pest control, roofing and lawn care — are the most sought-after small business acquisitions in the US. Demand is essential, customers come back, and SBA lenders understand the model. Here's how buyers value, finance and close these deals, and where to find off-market companies before they hit public listing sites.
Home services businesses for sale by trade
Typical deal sizes and multiples for the trades our buyers target most.
| Trade | Typical revenue | Typical SDE | Multiple |
|---|---|---|---|
| HVAC | $1M – $8M | $200K – $1.2M | 2.5x – 4.5x SDE |
| Plumbing | $750K – $5M | $175K – $900K | 2.5x – 4x SDE |
| Electrical | $1M – $10M | $200K – $1.5M | 3x – 5x SDE |
| Pest Control | $400K – $4M | $150K – $900K | 3x – 5x SDE |
| Roofing | $1M – $12M | $250K – $2M | 2.5x – 4.5x SDE |
| Landscaping & Lawn Care | $500K – $8M | $150K – $1.5M | 3x – 5x SDE |
| Lawn Care | $300K – $3M | $100K – $700K | 2.5x – 4x SDE |
| Septic & Pumping | $500K – $4M | $150K – $900K | 3x – 4.5x SDE |
The 6-step process
Step 1
Define your buy box
Pick trades, metros, revenue range and how hands-on you'll be. Owner-absent companies cost more; owner-operator shops leave room to grow.
Step 2
Get pre-qualified for SBA financing
Lenders want ~10% equity, liquidity for working capital, and management experience. Pre-qualification makes sellers take you seriously.
Step 3
Source off-market deals
Most good companies trade privately. Work owner-direct and broker-exclusive deal flow instead of competing on public listing sites.
Step 4
Value on SDE, not revenue
Normalize owner pay and add-backs, then apply a trade-appropriate multiple. Recurring maintenance agreements earn a premium.
Step 5
Run trade-specific diligence
Verify licenses, technician retention, maintenance-agreement counts, warranty liabilities, vehicle fleet and customer concentration.
Step 6
Close and transition
Use a seller transition period of 30–180 days, retain the license holder, and keep key techs with retention bonuses.
Why buyers choose home services
- Non-discretionary demand — a broken AC or burst pipe gets fixed in any economy
- Recurring revenue from maintenance plans and service agreements
- Retiring baby-boomer owners create steady succession-driven supply
- Fragmented markets make add-on acquisitions easy once you own a platform
- Equipment and receivables give SBA lenders collateral comfort
- Clear levers to grow: pricing, digital marketing, memberships and dispatch software
Home services businesses for sale by state
Frequently asked questions
What is a home services business?
A home services business performs recurring or essential work on residential properties — HVAC, plumbing, electrical, pest control, roofing, lawn care, landscaping and septic. Demand is driven by aging housing stock and non-discretionary repairs, which makes cash flow more predictable than most small businesses.
How much does it cost to buy a home services business?
Most owner-operated home services companies trade at roughly 2.5x–4.5x Seller's Discretionary Earnings (SDE). A business with $400K SDE commonly prices between $1M and $1.8M. Recurring-revenue trades like pest control and maintenance-agreement-heavy HVAC sit at the top of that range.
Can I use an SBA loan to buy a home services business?
Yes. SBA 7(a) loans are the most common financing for these deals, typically with 10% buyer equity, up to 10-year terms, and seller notes covering part of the down payment. Lenders like home services because the cash flow and equipment are easy to underwrite.
Why buy off-market instead of from public listing sites?
Public listings attract dozens of competing buyers and often represent businesses that already failed to sell privately. Off-market deals reach a small pool of qualified buyers first, which means less bidding pressure, more direct access to owners, and more time for diligence.
Do I need a trade license to buy an HVAC or plumbing company?
Not always personally. In most states the company operates under a qualifying licensed individual. You can retain the existing license holder or hire one, but this must be confirmed before closing because the license usually does not transfer automatically.
See off-market home services deals first
Members get private HVAC, plumbing, pest control and roofing companies matched to their buy box.