Recurring maintenance agreements are the multiple
A book of signed maintenance or service agreements is contracted, transferable revenue. Nothing else on your balance sheet moves the price the way that book does.
El Paso Owner's Guide · HVAC, Plumbing & Electrical
Home services companies command some of the strongest multiples in small business — when the revenue is recurring, the crews are licensed, and the phone rings because of the brand rather than the owner. Here is how buyers and lenders actually read your company.
The Local Market
Desert heat is a business model. Air conditioning is not optional here, water lines fail, and the housing stock keeps aging while new construction keeps going up. That produces demand no downturn erases — and buyers with capital know it.
A book of signed maintenance or service agreements is contracted, transferable revenue. Nothing else on your balance sheet moves the price the way that book does.
A buyer needs licensed technicians who stay after closing. Documented pay plans, low turnover, and a lead tech who is not you make the company financeable.
Service and replacement work tends to be steadier and higher-margin than new-construction contracts. A heavy new-construction mix is priced more cautiously.
Online reputation, a mature review profile, and the marketing that fills the schedule are real assets — as long as they belong to the company and not to your personal name.
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Move the slider. This uses owner's discretionary earnings (SDE) — your net profit plus your salary, personal expenses run through the business, interest, depreciation, and one-time costs — the number buyers and SBA lenders actually price.
$180,000 / year
Which of these are true today?
Illustrative Range
Estimated enterprise value
$468,000 – $711,000
That’s roughly 2.6× to 4.0× your owner’s earnings, before any real estate you own.
Every box you check is a lever you can still pull before you list. Owners who fix the books and the lease first routinely land at the top of their range instead of the bottom.
Illustration only — not an appraisal or an offer.
Step by Step
Three years of P&Ls and tax returns, reconciled, plus a clean report on agreement counts, renewal rates, average ticket, and revenue by department. The recurring base is what a buyer underwrites first.
Not a broker's opinion. We commission a certified valuation from an independent NACVA-credentialed appraiser — the caliber of report banks, buyers, the IRS, and courts rely on. It sets a defensible price and it survives diligence.
State licensing rules determine who can legally operate the company after closing. Whether the buyer holds a license, hires a qualifying individual, or retains your license-holder for a period, that answer has to exist before a buyer asks.
Vehicle titles and leases, bonding and insurance, warranty obligations, work-in-progress accounting, subcontractor classification, and unpaid taxes. Better we find them than a buyer's accountant.
No word to your crews, your customers, or your competitors. We market blind to vetted, financially qualified buyers under NDA, using market and financial profile only.
Offers, escrow, license and permit sequencing, equipment and vehicle schedules, and funding. We stay on it through closing and through the transition that keeps your crews and your customer base intact.
Costly Mistakes
Owners who run purely transactional service leave the largest single value lever untouched. A signed agreement book converts your company from a schedule into an asset.
If quotes close because you show up, buyers see a job, not a business. Owner-dependence is the most common reason a strong-looking company gets a weak offer.
Leads that route to your personal number and reviews attached to you personally are hard to transfer. Move them to the company early.
Workers treated as contractors who function as employees create real exposure. Lenders and buyers look at this closely in the trades.
Unbilled and partially completed jobs must be accounted for cleanly or they turn into an argument at the closing table.
Value follows trend, and preparation takes months. The right time to get ready is while the schedule is full, not after a soft season lands in the numbers.
Questions Owners Ask
Straight answers, no hedging. If yours isn’t here, call us and ask it directly.
Profitable home services companies commonly trade between roughly 2.5 and 4 times owner's discretionary earnings, and companies with a large book of recurring maintenance agreements can price above that. Where you land depends on recurring revenue, owner-dependence, crew retention, and revenue mix. Only a certified independent valuation survives a lender's underwriting.
Licensing does not simply pass to a buyer. Depending on the trade and the structure, the buyer may hold their own license, employ a qualifying license-holder, or retain your license-holder through a transition period. We build that answer into the deal structure from the start rather than discovering it at closing.
More than anything else in this industry. Agreements are contracted, renewable revenue that a buyer can bank on and a lender can underwrite. Building and documenting that book is the highest-return project available to a contractor preparing to sell.
Yes — qualified buyers can access SBA 7(a) financing up to $5 million, and lenders are comfortable with home services. It requires clean, reconciled financials and a defensible independent valuation. SBA pre-qualification is a preliminary, non-binding lender assessment, not a loan commitment.
Not from us. There is no public listing of your name or address. Your company is marketed blind to vetted buyers who sign a non-disclosure agreement before they learn who you are.
It is exactly the right time. The changes that move a trades multiple — agreements, an operations manager, clean books — take a year or more to show up in the numbers. Those conversations cost you nothing.
Where we work
Whether your hvac or plumbing company sits on the east side, downtown, out in the valley, or across the state line in Doña Ana County, the sale process is the same: verified financials, an independent certified valuation, and a confidential, competitive market of qualified buyers. We meet owners at a time and place of their choosing.
HVAC or Plumbing Company Owners · Confidential
One confidential conversation with a partner — not a coordinator. We will tell you where your numbers put you today, what would move the multiple, and whether now is your moment.