M&A Trends in 2025 – A Deep Dive & Regional Analysis for Home Services Business Owners

Tawni Nguyen
Feb 8
4 min read

Updated: Feb 8

Navigating Construction & Home Services M&A: Key Insights & January 2025 Market Recap

2025 is shaping up to be one of the biggest years for M&A in the home services and construction sectors—but not all deals are created equal.

If you own a business in this space, you’ve probably been approached by a buyer or investor(s) before. Maybe you’re wondering: Is now the right time to sell? How do I compete with bigger firms? Will private equity gut my business or grow it?

At Evergreen Home Services, we’ve been in the trenches, watching deals succeed—and watching them fall apart.

This January 2025 M&A Market Recap breaks down what’s happening regionally and nationally, so you can make the best decision for your business.

📊 January 2025 M&A Market Snapshot

Las Vegas & Regional Trends:

The Las Vegas construction market saw a 4.8% increase in M&A activity compared to Q4 2024, with plumbing, HVAC, and electrical services seeing the most consolidation (Nevada Economic Development Report, 2025).
Three major home services rollup acquisitions occurred in January alone, each exceeding $10M in valuation, signaling strong investor demand (PitchBook Data, 2025).
Private equity-backed firms accounted for 68% of M&A transactions in the home services sector, reinforcing the shift toward financial buyers over strategic buyers (Bain & Company, Q4 2024).
The average valuation multiple for home services businesses in high-growth regions like Nevada, Texas, and Arizona was 5.2x EBITDA (compared to 4.7x nationally) (Bain & Company).

What This Means for You:

If you’re in a high-growth market like Las Vegas, your business could command a premium due to demand for local market share.
Businesses with strong customer retention, operational efficiency, and digital presence are receiving higher multiples in deals.

Thinking about selling? This could be one of the best windows to maximize your business’s value.

1. Rollup Strategies Are Reshaping the Industry

Larger firms and private equity groups are buying up smaller businesses to create regional giants. If your business is profitable, organized, and scalable—you’re exactly who they’re looking for.

🔹 Regional Data:

Nevada & Arizona: Rollups are targeting multi-location service businesses with annual revenues between $5M-$25M (PwC Report, 2024).
California & Texas: Increased regulatory costs are pushing smaller business owners to exit early, fueling rollups (EY Survey, 2024).
Southeast U.S.: HVAC and solar companies are prime targets due to rising energy efficiency mandates.

🔹 What Business Owners Need to Know:

Buyers love businesses with recurring service contracts—these deals command 10-20% higher multiples than one-time service businesses (McKinsey & Company).
Not all rollups are good rollups. Some prioritize investor profits over business longevity, leading to mass layoffs and customer attrition (EY Survey, 2024).

If you’re approached about a rollup, don’t just look at the price—look at the buyer’s track record.

2. Private Equity Money is Flooding the Home Services Sector

💰 Private equity firms invested over $12B in home services in January 2025 alone (PitchBook Data, 2025). It’s clear—this sector is red hot. But the real question is: Who’s buying—and what’s their plan?

🔹 What’s Happening:

Nevada-based PE firms have led 3 of the top 5 recent acquisitions in the home services sector.
85% of PE firms now consider home services a “priority acquisition sector” (PitchBook Data, 2025).
Major January 2025 Deal: Service Champions acquired a multi-state HVAC operation in a $200M deal—one of the largest home services acquisitions of the last year (Bain & Company, 2025).

🔹 What This Means for You:

Private equity-backed firms often promise rapid growth but may prioritize investor returns over business longevity.
Some PE firms slash jobs and cut corners—others invest in long-term success. Knowing the difference is key.

A strong deal isn’t just about money—it’s about protecting the future of what you’ve built.

3. Las Vegas M&A Hotspots – Who’s Buying and Selling?

🔹 Recent Deals in Nevada & Southwest:

January 2025: A major plumbing rollup acquired 5 Las Vegas-based businesses, forming a regional giant (Las Vegas Review-Journal, 2025).
Electrical contracting businesses are seeing increased acquisition interest, with multiple deals in negotiation for Q1.
Solar & energy efficiency companies are becoming hot targets due to federal incentives driving adoption (U.S. Green Building Council, 2025).

🔹 What Buyers Are Looking For:

Businesses with strong local market dominance (high brand recognition and customer retention).
Companies with tech-enabled operations—businesses that use CRM, scheduling software, and automated systems are closing deals 30% faster (McKinsey & Company).

If you own a home services business in Nevada, this could be a peak window for selling at maximum value.

4. Avoiding Common M&A Pitfalls

🔹 Top Mistakes Business Owners Make When Selling:

Not understanding tax implications. The wrong deal structure can cost you hundreds of thousands in taxes (Exit Planning Institute).
Failing to vet buyers properly. Some buyers will strip out value rather than grow it.
Not preparing early. The average sale timeline is 12-24 months—rushed deals often get lower valuations.

Get your financials in order and start planning your exit 1-2 years in advance.

Final Thoughts: What’s Next for You?

With 2025 shaping up to be a record year for M&A, business owners need to be informed, strategic, and prepared. Whether you’re considering selling, merging, or staying independent, knowing the right trends will help you make the best decision for your legacy.

📩 Thinking about your next move? We help business owners navigate M&A, rollups, and private equity deals—ensuring they walk away with the best possible outcome.

📞 Let’s talk. No pressure, just an honest conversation about what’s best for you and your business.