What EBITDA multiple do home services businesses sell for?

Last updated: 2026-04-13

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What EBITDA Multiple Do Home Services Businesses Sell For?

Home services businesses typically sell for 4.5x to 7.5x EBITDA, with most transactions clustering around 5.5x to 6.5x. Strategic buyers and PE firms paying at the higher end (6.5x–7.5x) are acquiring businesses with recurring revenue, strong unit economics, recurring customer relationships, and experienced management teams. Smaller or less predictable home services companies sell closer to 4.5x–5.5x EBITDA.

Why The Range Exists

Home services multiples vary based on several operational factors:

Revenue predictability: Recurring maintenance contracts command 6.5x–7.5x. One-off repairs or seasonal work trade at 4.5x–5.5x.
Customer retention: Businesses with 80%+ annual customer retention see 1.0x–1.5x multiple premiums versus those with 50% retention.
Management depth: Owner-dependent businesses trade at 4.5x–5.5x. Those with trained ops teams and branch managers hit 6.5x–7.5x.
Geographic footprint: Single-market operators: 4.5x–5.5x. Multi-market players with proven replication: 6.5x–7.5x.
Margins: EBITDA margins above 25% support higher multiples. Below 15% compress them by 0.5x–1.0x.

Real Market Data

Recent home services acquisitions show this spread:

HVAC service company, single market, 60% customer retention, owner-operator: Sold at 4.8x EBITDA.
Plumbing franchise group, 3 states, 75% retention, dedicated management: Sold at 6.2x EBITDA.
Pest control operator, national platform, recurring contracts, 85% retention: Sold at 7.1x EBITDA.
Electrical contracting (commercial + residential mix), inconsistent jobs: Sold at 5.0x EBITDA.

PE firms and strategic consolidators justify higher multiples when they can bolt add-on acquisitions into existing infrastructure, cross-sell services, or leverage shared management and routing technology across regions.

What Buyers Actually Look At

EBITDA multiple alone isn’t the full story. Buyers calculate:

Revenue quality (% recurring vs. one-off)
Customer acquisition cost and payback period
Technician turnover and training systems
Pricing power and rate increases over prior 3 years
Percentage of revenue dependent on the owner

A business earning $500k EBITDA at 4.8x ($2.4M) with strong recurring revenue may be more attractive than one at 5.5x ($2.75M) with poor retention.

What This Means For You

Know which variables your business controls. If you’re at 4.5x–5.5x, improving customer retention by 15 points, formalizing your management team, or expanding to an adjacent market can add $200k–$400k in transaction value. Documenting these improvements matters to buyers. Working with advisors like CT Acquisitions who understand what PE and strategic buyers prioritize helps you position these strengths before entering the market.

Want to Know Your Specific Number?

Every business is different. A quick conversation can give you a real answer based on your specific numbers.

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