Free calculators, assessments, training, and guides. Built for service business owners doing $5M-$50M in revenue.
Each calculator uses real EBITDA multiples and industry-specific risk adjustments. Same math PE firms use. Your number in 2 minutes.
Beyond calculators: assessments, training, and frameworks to maximize your exit.
Whether you are three years out or thirty days from listing, this framework covers what matters. Built from working with hundreds of service business owners across plumbing, HVAC, electrical, pest control, landscaping, and roofing.
The first step in any exit plan is understanding what your business is worth today. Not what you think it is worth. Not what your buddy sold his for. The number that a buyer would actually pay based on your financials.
Service business valuations are calculated as Adjusted EBITDA x Industry Multiple. Your adjusted EBITDA is your net profit plus your salary, interest, depreciation, amortization, and one-time expenses. The multiple depends on your industry, size, and risk profile.
Here are the current EBITDA multiple ranges by industry:
Source: GF Data, PitchBook, and publicly reported service-sector transactions (2023-2025).
Project-based revenue is worth less than contract revenue. A plumbing company doing $8M in one-off jobs trades at 4x EBITDA. The same company with 30% recurring maintenance contracts trades at 6x. On $1M EBITDA, that is the difference between a $4M and a $6M exit.
Buyers pay more for predictability. Service agreements, maintenance contracts, and retainer programs all count. The target: get to 25-35% recurring revenue before going to market.
This is why pest control commands the highest multiples. Monthly contracts are the default. If your industry does not have that built in, you need to build it.
The four-week test: can your business operate for one month without you? If the honest answer is no, buyers see a job they are purchasing, not a company. That means a lower multiple and often significant earnout requirements.
The fix is specific: hire a strong #2 leader, document every process, move key client relationships to the team, and systematize your decision-making. Per the Exit Planning Institute, businesses with documented processes and a strong operations leader sell for 20-40% more than owner-dependent equivalents.
This takes 12-18 months to do right. Which is why you start now, not when you are ready to list.
If your top 3 clients represent more than 30% of revenue, buyers will discount your price or walk away entirely. Customer concentration is one of the biggest deal-killers in service business M&A.
The target: no single customer above 10-15% of revenue. This takes deliberate effort over 18-24 months. But it directly protects your multiple and makes your business more resilient in the meantime.
The best exits are planned, not reactive. Here is what the timeline looks like:
Free. Takes 2 minutes. No sales call.
Frequently Asked Questions
What is the average EBITDA multiple for a service business?
Service businesses sell for 3-9x EBITDA. Pest control commands the highest multiples (6-9x) due to strong recurring revenue. The exact multiple depends on industry, recurring revenue percentage, owner dependency, and customer concentration.
How long does it take to sell a service business?
The typical timeline from listing to close is 6-12 months. But preparation should begin 2-3 years before your target exit. This is when you build recurring revenue, reduce owner dependency, and document processes.
What do buyers look for in a service business?
Five key factors: (1) Recurring revenue percentage, (2) Owner dependency, (3) Customer concentration, (4) Employee retention, (5) Growth trajectory. Businesses scoring well on all five command premium multiples.
Should I hire a broker to sell my service business?
For businesses under $5M revenue, a quality broker provides buyer network access. For $5M-$50M, an M&A advisor with service industry experience is more appropriate. The key is finding someone who has closed deals in your specific industry.
You have spent decades building this. Get what you have earned.