Sell your contracting, trades or home services business
This year I’m working with a commercial door and hardware contractor, electrical contractors and a security company. Trades businesses sell on crews, contracts and how much runs through the owner. Let’s talk about yours.
- Field workforce more than 1,000 employees at the senior care business I owned
- Finance first corporate finance and an MBA before ownership
- No retainer I am paid when your sale closes
Buyers want skilled crews and service revenue, and they are paying for both.
Contractors are short of workers while demand stays strong. That makes an established company with trained technicians one of the most sought after assets in the lower middle market.
Associated Builders and Contractors estimates construction must attract about 349,000 net new workers in 2026 and about 456,000 in 2027. About one fifth of all electricians are over 55. Buying a company is often the fastest way for a buyer to add licensed people.
Source: Electrical Construction & Maintenance, ABC workforce shortage model, Jan 2026
Capstone Partners counted 92 HVAC services deals through July 2026, close to the prior year pace. Private equity backed buyers made 47 of them. Average deal multiples since 2024 were 2.0x revenue and 9.5x EBITDA, down from 13.3x EBITDA in 2021 to 2023.
Sources: Capstone Partners, HVAC services M&A update, Jul 2026, PKF O'Connor Davies, US HVAC M&A industry update, Summer 2026
Primoris agreed to pay $422 million in cash for PayneCrest Electric, which projects $38 million to $42 million of 2026 adjusted EBITDA. MasTec agreed to buy The Superior Group for about $1.65 billion. Loenbro called its purchase of Prism Electric the largest in its history.
Sources: Pulse 2.0, Primoris acquires PayneCrest Electric, Mar 2026, RTTNews, MasTec to acquire The Superior Group, Jul 2026, Construction Owners, Loenbro acquires Prism Electric, Sep 2026
Allied Universal closed eight acquisitions between May and July 2026, adding about $205 million of annual revenue. In October 2026, Reuters reported that SoftBank may buy Allied Universal for $18 billion. Guarding margins stay thin, near 7% to 8% EBITDA, so contract quality drives price.
Sources: Security Today, Allied Universal adds eight companies in 2026, Sep 2026, SDM, Reuters report on SoftBank and Allied Universal, Oct 2026, CT Acquisitions, security guard company M&A multiples report, 2026
What a trades buyer checks first.
SBA buyers and private equity platforms ask contractors for the same first items. I pull these together before a trades business goes to market.
Revenue mix
How much comes from service and repair, replacement, new construction and bid work. Buyers pay more for service revenue that repeats than for one time projects.
Maintenance agreements and contracts
The count of service agreement members, renewal rates and multi year commercial or guarding contracts. Buyers want the schedule with terms, rates and change of control clauses.
Backlog and job costing
Signed but unfinished work, with expected gross margin by job. Buyers compare bid margins to finished margins to see how well you estimate.
Technicians and crews
Headcount by role, license level, pay, tenure and turnover. Buyers want to know who stays after closing and who holds the key licenses.
Licenses, qualifiers and bonding
Contractor, electrical, alarm or guard licenses and the person who qualifies each one, plus bonding capacity. Some licenses do not move with an asset sale.
Customer concentration
Revenue from your top ten customers, general contractors or property managers. One client above a quarter of sales is a pricing problem.
What raises or lowers a contractor's price
| What pushes your price down | What pushes your price up |
|---|---|
| Most revenue from one time projects and new construction bids | Service, repair and maintenance agreements that repeat every year |
| The owner is the license qualifier, estimator and top salesperson | A general manager, licensed qualifier and estimators who run the day without you |
| One general contractor or client brings in a third of sales | A wide base of homeowners, property managers and commercial accounts |
| High technician turnover and nobody in training | Tenured crews, an apprentice pipeline and documented pay plans |
| Job costs tracked in the owner's head and spreadsheets | Job costing in your system that ties to the P&L and the tax return |
| Aging trucks and equipment with deferred repairs | A maintained fleet with a replacement schedule and clean titles |
Platforms, public contractors and first time owners are all buying.
Sponsor backed platforms lead on residential HVAC, plumbing and electrical. Public contractors buy larger electrical and mechanical firms. Individuals with SBA loans buy many owner operated shops.
| Buyer type | What they pay for | Active examples |
|---|---|---|
| Residential home services platformsSponsor backed strategic | Established local brands with trained technicians, service agreement members and room to add HVAC, plumbing or electrical. Redwood added about 400 employees with Sierra. | Redwood Services, Rocket Group, Liberty Services Partners (NorthCurrent Partners) |
| Public and large specialty contractorsStrategic | Electrical and mechanical contractors with skilled craft labor, service revenue and a foothold in new regions or data center work. | Primoris, MasTec, Everus Construction, Legence, Loenbro |
| Door, hardware and openings platformsSponsor backed strategic | Regional door, frame and hardware suppliers and installers with locksmith, hollow metal and government work. Cook & Boardman made its eleventh acquisition under Platinum Equity in Jan 2025. | Cook & Boardman (Platinum Equity), Integrated Openings Solutions |
| Security and fire life safety consolidatorsStrategic and financial | Guarding contracts with multi year terms, specialized verticals and clean licensing, plus fire and alarm inspection revenue. | Allied Universal, Pye Barker Fire & Safety, GardaWorld, Securitas |
Recent trades and home services deals.
Trades deals made public in 2025 and 2026. Most contractor sales close without a press release, so this tracks active buyers rather than prices.
| Date | Buyer | Target | Type | Value |
|---|---|---|---|---|
| Sep 2026 | Loenbro | Prism ElectricTexas and Oklahoma electrical contractor, about 2,500 employees | Strategic | Undisclosed |
| Sep 2026 (reported) | Allied Universal | SSC, Aegis Protective Services and six othersGuarding, technology, patrol and response in the US, Canada and Netherlands; about $205M combined revenue | Strategic | Undisclosed |
| Jul 2026 | Pye Barker Fire & Safety | Southland Fire & Safety EquipmentGonzales, Louisiana; fire protection since 1972 | Strategic | Undisclosed |
| Jul 2026 | MasTec | The Superior GroupElectrical contractor; $2.2B to $2.5B projected 2027 revenue | Strategic | About $1.65B plus earnout |
Show all 14 deals
| Date | Buyer | Target | Type | Value |
|---|---|---|---|---|
| Jul 2026 | Rocket Group | Clemmer ServicesSan Bernardino, California; residential HVAC and plumbing; Rocket Group's 14th brand | Platform add on | Undisclosed |
| May 2026 | Clean Harbors | Terra Nova SolutionsCarolinas; five sites, about 150 trucks; about $15M adjusted EBITDA | Strategic | $225M |
| May 2026 | Redwood Services | Sierra PlatformNevada, Arizona, Idaho and Colorado; about 400 employees, more than $100M revenue | Platform add on | Undisclosed |
| May 2026 | Integrated Openings Solutions | Commercial Door and HardwareFort Smith, Arkansas; doors, frames, hardware, locksmith and hollow metal shop | Platform add on | Undisclosed |
| Apr 2026 | Everus Construction | SE&M ConstructorsElm City, North Carolina; mechanical contractor, $109M 2025 revenue, 200+ craft workers | Strategic | $158M plus earnout |
| Apr 2026 | Liberty Services Partners | Arctic Breeze Air Conditioning & HeatingFlorida residential HVAC; backed by NorthCurrent Partners | Platform add on | Undisclosed |
| Mar 2026 | Primoris Services | PayneCrest ElectricSt. Louis, Missouri; 600+ employees, $350M to $370M projected 2026 revenue | Strategic | $422M |
| May 2025 | Allied Universal | Maxsent (CDA, Inc.)US guarding and government services; one of five Allied deals by May 2025 | Strategic | Undisclosed |
| Mar 2025 | Redwood Services | Hope PlumbingIndianapolis residential plumbing | Platform add on | Undisclosed |
| Jan 2025 | Cook & Boardman | Jones Doors & WindowsMocksville, North Carolina; doors, windows, trim and hardware; eleventh deal under Platinum Equity | Platform add on | Undisclosed |
What is your construction or trades business worth?
Owner run contractors and service shops sell on SDE. Bigger companies with a management team and service agreements trade on adjusted EBITDA.
Illustrative only, not a valuation.
Published ranges for this industry
- Building and construction, sold 2021 to 2025: 2.43x SDE median, 3.13x top quarter (BizBuySell)
- HVAC businesses sold from 2021 to 2025: median 2.58x SDE, upper quartile 3.33x (BizBuySell)
- Electrical and mechanical contractors sold from 2021 to 2025: median 2.56x SDE, upper quartile 3.15x (BizBuySell)
- Plumbing businesses sold from 2021 to 2025: median 2.24x SDE, upper quartile 3.15x (BizBuySell)
The bands come from the trades data above. Recurring revenue, your role, concentration and growth shift them by amounts I chose. It is a first look, not a valuation.
Where trades and service owners lose money in a sale.
Contractors and service companies repeat the same few mistakes. Starting a year or two ahead usually leaves time to fix them.
Being the license holder and the rainmaker
When the license, every bid and the key accounts depend on you, a buyer is purchasing a job. Adding a qualifier and a sales lead solves it.
Cost: A lower contractor multiple or a long earnout
Leaving job costs unproven
Buyers test whether your margins are real job by job. Costs tracked loosely make gross margin look like a guess.
Cost: Earnings left out of the price
Letting one customer grow too large
A general contractor or property manager above a quarter of sales worries every buyer. They price in the risk of losing that account.
Cost: A discount or part of the price held back
Selling on handshake agreements
Unwritten service terms and verbal deals with customers cannot be transferred or counted. BizBuySell lists them among factors that lower the multiple.
Cost: Revenue a buyer will not pay for
Ignoring how licenses transfer
Some contractor, alarm and guard licenses cannot move in an asset sale. That can change the deal structure late in the process.
Cost: A delayed trades closing or a buyer who walks
Hiding turnover from yourself
Buyers ask for headcount, tenure and turnover by role. High churn tells them the crews may leave after you do.
Cost: A smaller buyer pool and tougher terms
What contractors and service owners ask me before they sell.
Who is buying trades and home services businesses right now?
Sponsor backed platforms like Redwood Services and Rocket Group are buying residential HVAC and plumbing brands. Public contractors like Primoris, MasTec and Everus are buying electrical and mechanical firms. Allied Universal and Pye Barker keep buying in security and fire safety.
What multiple will my contracting business sell for?
Most small contractors sell on SDE. BizBuySell's 2021 to 2025 medians: HVAC 2.58x, electrical and mechanical 2.56x, plumbing 2.24x. Capstone Partners tracked larger HVAC services deals at 9.5x EBITDA from 2024 through July 2026.
Should my trades business be valued on SDE or EBITDA?
Under roughly $1 million of earnings, BizBuySell points to SDE. Above that, with a paid manager, adjusted EBITDA is the norm. I build both so each buyer sees the figure they price on.
How long does it take to sell?
Median days on market per BizBuySell: HVAC 186, plumbing 202, electrical and mechanical 238. Iconic publishes a 5.2 month median time to close. Good preparation tends to matter more than the listing.
Why are buyers so interested in skilled trades right now?
Workers are scarce. Associated Builders and Contractors estimates the industry must attract about 349,000 new workers in 2026, and about one fifth of electricians are over 55. Buying an established company brings trained, licensed people on day one.
How are security guard companies valued?
One advisor publishes 4x to 5x EBITDA for guard firms under $25 million of revenue. It cites 6x to 7x from $25 million to $100 million. Margins near 7% to 8% EBITDA mean contract retention and wage escalators drive the price. Buyers often tie part of the price to retention.
Can a trades buyer use an SBA loan to buy my company?
Frequently. Since June 2025 a contractor's SBA buyer must bring at least 10% equity. A seller note that stays on full standby can fund up to half of it.
Can I keep a small stake in my company after the sale?
You can, though it changes how a buyer finances the company. If a trades owner keeps a stake in an SBA financed sale, June 2025 SBA rules require a two year personal guarantee from that owner. Many contractors exit fully for that reason.
Terms buyers will use
- SDE
- A contractor's profit with owner pay, perks and one time costs added back. Most trades companies under a few million in profit are priced on it.
- Adjusted EBITDA
- Operating profit before interest, taxes, depreciation and amortization, rebuilt as if a paid general manager ran the trades company.
- Maintenance agreement
- A paid plan where a customer gets scheduled tune ups or inspections, which creates repeat visits and revenue.
- Backlog
- Signed contract work not yet completed, often shown with expected margin by job.
- Job costing
- Tracking labor, materials and overhead on each job to measure its actual profit.
- Qualifier
- The licensed person whose credentials hold a company's contractor or trade license.
- Bonding capacity
- The size of projects a surety will guarantee for a contractor, which limits the work it can bid.
- Experience mod
- A workers compensation rating that compares a company's injury claims to similar businesses and moves its premium.
- Platform
- The first contractor a private equity sponsor buys in a trade, which then buys others.
- Add on
- A smaller shop bought by a platform for more crews, territory or services.
- Division 10 specialties
- The construction specification section for items like lockers, partitions and signage, often supplied with doors and hardware.
- Earnout
- A slice of the price paid after closing, tied to hitting set targets.
- Full standby
- A seller note that is not paid while the buyer's SBA loan on a contractor is outstanding.
- Equity rollover
- Part of your proceeds put back into the buyer's company, cashed out when that company sells.
Own a construction, trades or home services business? Schedule a complimentary call with Max!
Confidential and 20 minutes long. We look at your service revenue, crews and job margins through a buyer's eyes, then agree on what to fix.
Sources (26)
- Electrical Construction & Maintenance, ABC workforce shortage model, Jan 2026
- Capstone Partners, HVAC services M&A update, Jul 2026
- PKF O'Connor Davies, US HVAC M&A industry update, Summer 2026
- Pulse 2.0, Primoris acquires PayneCrest Electric, Mar 2026
- RTTNews, MasTec to acquire The Superior Group, Jul 2026
- Construction Owners, Loenbro acquires Prism Electric, Sep 2026
- Security Today, Allied Universal adds eight companies in 2026, Sep 2026
- Security World Market, Allied Universal acquisitions in 2025, May 2025
- SDM, Reuters report on SoftBank and Allied Universal, Oct 2026
- CT Acquisitions, security guard company M&A multiples report, 2026
- CT Acquisitions, how to sell a security guard business, 2026
- BizBuySell, HVAC valuation benchmarks
- BizBuySell, plumbing valuation benchmarks
- BizBuySell, electrical and mechanical contractor valuation benchmarks
- BizBuySell, building and construction valuation benchmarks
- Frontenac, Integrated Openings Solutions acquires Commercial Door and Hardware, May 2026
- Cook & Boardman, acquisition of Jones Doors & Windows, Jan 2025
- Contracting Business, Redwood Services acquires Sierra Platform, May 2026
- Faegre Drinker, Hope Plumbing sale to Redwood Services, Mar 2025
- Contracting Business, Rocket Group adds Clemmer Services, Jul 2026
- Pulse 2.0, Everus Construction acquires SE&M, Apr 2026
- Clean Harbors, Terra Nova Solutions acquisition release (SEC Form 8 K exhibit), May 2026
- Security Sales & Integration, Pye Barker acquires Southland Fire & Safety Equipment, Jul 2026
- PrivSource, environmental services buyout acquisitions in 2026
- Live Oak Bank, SBA SOP 50 10 8 changes, effective Jun 2025
- BizBuySell, selling a construction business guide
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