Mergers and Acquisitions Reality: What Home Service Business Owners Should Know

You don’t need to be a $10 million business to sell. If you own a plumbing, HVAC, electrical, or similar service company and you're earning solid profits, buyers are still looking for businesses like yours—even in today’s economy.

Yes, Buyers Are Still Out There

While larger deals are being delayed or canceled due to economic volatility, trade policy uncertainty, regulatory shifts, and rising interest rates, this doesn’t apply to most small service businesses.

Why Your Business Is Still in Demand

There’s over $1.2 trillion in private equity and acquisition capital waiting to be invested. A growing share is targeting recession-resistant, profitable businesses making $300K to $1.5M in EBITDA—especially in trades like plumbing, HVAC, and electrical.

These businesses are attractive because they:

• Provide essential services people can’t delay
• Can grow with better systems and staff
• Fit easily into larger business rollups

The $36 Million Payday: Real, But Conditional

A well-known investor once said: “If a business makes $4 million in EBITDA, it can sell for $32–36 million.” That’s true—but only if it meets strict criteria.

High multiples (8–9x) go to companies that:

• Have clean financials and clear internal processes
• Generate repeatable revenue
• Run with low owner involvement
• Maintain strong margins and scalable systems
• Fit a strategic buyer’s acquisition model

What You Should Be Doing Now

Even if you’re not planning to sell soon, you should prepare like you might. Well-run businesses are worth more—on paper and in practice.

• Get your books in order: Organized financials build buyer confidence.
• Reduce owner dependence: If the business needs you daily, it's less attractive.
• Document your systems: Show buyers how your business runs.
• Know your buyer: Different buyers value different things.

Final Thought

The broader M&A slowdown doesn’t apply to profitable home service businesses. If your operation is dialed in—and your books can prove it—serious buyers are still out there.

The window belongs to the prepared—not the hopeful.