What's My Business Actually Worth?

A Real-World Valuation Guide for Home Services Companies

If you own an HVAC, plumbing, roofing, electrical, or landscaping business, you’ve

probably asked yourself:

“What is my business actually worth?”

Not what your buddy sold his for.

Not what a broker threw out casually.

Not what you hope it’s worth.

But what it would realistically sell for in today’s market.

At Haycock Capital, we specialize in advising founders of home services companies on

valuations, exit planning, and transactions. This guide will show you how to ballpark

your own value using the same framework buyers and private equity firms use.

Step 1: Start with EBITDA (Not Revenue)

When buyers think about business valuation, they almost always focus on EBITDA.

EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization

Why? Because EBITDA approximates the true cash flow a new owner can generate

from your business. Its a measure of profitability for the new buyer. If you don't have your EBITDA off hand, you can look at your annual P&L or your tax returns and use the net income line.

If your business generates:

• $5M in revenue

• $1M in EBITDA

Your valuation discussion starts with that $1M number, not the $5M.

Note: most buyers will take the EBITDA from the last (or trailing) twelve months often called TTM, assuming the last few years are fairly consistent. If you had a great bump during COVID, but normalized by 2025, a buyer has to assume and use the normalized number. At the same token, if you have been consistently growing 15% every year, you get paid off of your company's best years.

Quick Adjustment: “Owner Add-Backs”

Many home services businesses are owner-operated. That means your reported net

income may not reflect true profitability.

Common add-backs:

• Excess owner salary (like if you take a W2 payroll salary plus take distributions)

• Personal expenses running through the business (vehicle expense is very common)

• One-time legal/accounting fees (items a new buyer wouldn't have to spend money on)

• Non-recurring equipment purchases

After adjustments, your true EBITDA might be higher than your tax return suggests.

Step 2: Apply an EBITDA Multiple

This is where the phrase EBITDA multiples comes in.

The basic formula:

Sales Price (also called Enterprise Value) = EBITDA × Multiple

For home services companies, typical ranges look like:

Business Profile Typical

Multiple

<$500K EBITDA, owner-dependent 2.5x – 3.0x

$500K–$1.5M consistent multi-year EBITDA 3.0x – 5.0x

$2M+ EBITDA, strong systems 4.0x – 7.0x+

Platform-quality (multi-location, scalable) 7.0x – 9.0x+

These are broad ranges. The difference between a 2.5x business and a 7x business is

often structure, predictability, and scalability, not size alone.

Step 3: What Actually Drives Your Multiple?

Many owners assume size is everything. It’s not.

Here’s what sophisticated buyers really evaluate when determining how to value a

business:

1. Recurring Revenue

• Service contracts

• Maintenance agreements

• Subscription-style billing

Predictable revenue = higher multiple.

2. Management Team (Can It Run Without You?)

If the business collapses when you take a two-week vacation, buyers discount heavily.

If you have:

• A GM

• Department managers

• Documented SOPs

• KPI dashboards

Your multiple increases.

3. Customer Diversification

Heavy concentration (e.g., 40% from one GC or property manager) lowers value.

Diversified residential customer bases typically command stronger valuations.

4. Clean Financials

Messy books reduce confidence and confidence drives price.

Professional accounting = professional valuation.

5. Growth Trajectory

Buyers pay for future growth, not just current earnings. 10–20% steady growth with strong margins often trades at a premium.

Real-World Example

Let’s compare two HVAC companies.

Company A

• $1M EBITDA

• Owner runs sales

• No documented systems

• Limited service contracts

Likely Value:

$3.5M – $4.5M

Company B

• $1M EBITDA

• General Manager in place

• >60% recurring revenue

• Strong CRM + KPI tracking w. predictable pipeline

• Multi-location expansion opportunity

Likely Value:

$5.0M – $6.0M+

Same EBITDA. Very different valuation.

The 30-Second Valuation Ballpark Exercise

Want a quick estimate?

1. Determine your normalized EBITDA.

2. Multiply by:

o 3–4x if owner-heavy and under $1M EBITDA

o 4–6x if moderately systemized

o 6–8x+ if scalable with management in place

That gives you a rough Enterprise Value range.

But here’s the truth:

Two businesses with identical EBITDA can differ in value by millions of dollars.

Timing Matters

The home services sector continues to attract:

• Private equity platforms

• Strategic buyers

• Regional consolidators

Market conditions, interest rates, and buyer demand all influence valuation at any given

time.

A professional process often increases competitive tension and competitive tension

increases multiples.

The Biggest Mistake Owners Make

They wait until they’re exhausted to explore a sale.

The highest valuations usually go to businesses that:

• Don’t need to sell

• Have strong upward momentum

• Are professionally prepared

Exit planning 2–3 years in advance can significantly increase value.

Final Thoughts

If you’re asking:

• “What’s my business worth?”

• “How do I value my business?”

• “What EBITDA multiple should I expect?”

The answer is: it depends, but not randomly. It depends on preparation, structure, financial clarity, and positioning.

At Haycock Capital, we work exclusively with founders of home services businesses to:

• Evaluate real-world valuation ranges

• Identify value gaps

• Structure competitive sale processes

• Maximize after-tax outcomes

Use our Valuation Calculator to get a free, quick, no obligation estimate of what your company could be worth. If you want to narrow the range and get a better idea of valuation given your company's specific situation, feel free to reach out to us.