How to Value Your HVAC or Plumbing Business
- Tawni Nguyen
- Jun 7
- 3 min read
Updated: Jun 29
Q: How much is my HVAC or plumbing business actually worth?
A: No one’s buying just your tools or trucks. What they’re really paying for is:
Your cash flow (profitability)
Systems that run without you
Customer base with recurring revenue
Loyal crew that stays
Brand reputation in your community
If your business generates steady profit and doesn’t rely on you for every decision—you’re building real value.
Q: How is a trades business like mine typically valued?
A: Most buyers use EBITDA or SDE multiples.
Here are the common methods:
Market-Based: Compares you to similar sales. Ex: 4–5x EBITDA for clean books and strong teams.
Asset-Based: Adds up trucks, tools, and subtracts liabilities. Good for asset-heavy or distressed businesses.
Income-Based: Future earnings discounted to present value. Preferred by strategic buyers and PE groups.
Q: What makes my business more valuable when selling?
A: Predictability.
Buyers pay more for businesses with:
Recurring revenue (maintenance plans, service agreements)
Clean systems and SOPs
Organized financials
Team continuity without you involved
Year-over-year growth
Q: What do buyers actually care about in a business like mine?
A: Systems, team, recurring revenue, and profitability.
They’re not just buying your past—they’re buying predictable future results.
Q: What lowers my valuation or leads to a lowball offer?
A: These red flags shrink deals fast:
You run everything yourself
No documented systems
One client generates 25%+ of revenue
Cash-heavy ops that can’t be verified
Messy or outdated books
Buyers don’t want risk. Clean it up and command more.
Q: Can I estimate my company’s value on my own?
A: You can get a ballpark—but you’ll miss strategic value.
Online calculators miss:
Regional comps
Buyer-specific fit
Add-backs that raise SDE
Deal structure/tax considerations
Valuation is part math, part strategy, part story.
Q: Why does deal structure matter so much in the final sale price?
A: Because $2M on paper might net you $1.1M after taxes, earnouts, and financing.
Ask:
How much is paid upfront?
What’s tied to performance?
What’s seller-financed?
What will Uncle Sam take?
Q: Why is the sale price sometimes different from the valuation?
A: Because valuation is an estimate—sale price is the real number.
Sale price depends on:
Buyer type (PE vs. strategic vs. individual)
Timing and market conditions
What comes up in due diligence
Negotiation and emotional leverage
Q: When is the right time to start preparing for a sale?
A: 12–36 months before you want out.
Waiting until you're burnt out destroys leverage. Prep while you're strong.
Q: Can I sell part of my business without giving up full control?
A: Yes. There are smart ways to:
Sell a portion
Bring in capital
Stay involved while reducing risk
Q: What does a strategic buyer like Evergreen look for in a deal?
A: Long-term value and alignment.
We’re not flippers or brokers—we invest in:
Legacy worth protecting
Teams worth growing
Systems worth scaling
Founders worth partnering with
Q: What’s the one thing that separates a great exit from a mediocre one?
A: Preparation.
Selling isn’t just a transaction—it’s a transition. It affects your future, your team, and your peace of mind.
The best exits are intentional—not rushed.
Want a Real Valuation?
This guide helps you start the conversation from a position of strength.
If your HVAC or plumbing business is generating $1M+ in EBITDA, we offer confidential, no-pressure valuations.
No “list with us” pitch. Just real numbers, real insights, and the support to help you decide what’s next.
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