Trade business valuation multiples, compared side by side.
HVAC, plumbing, electrical, roofing, and pest control do not price alike. The gap is not about which trade is harder. It is about how much of the revenue repeats.
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The transactions that set the benchmark across every trade.
Sponsors that entered through HVAC are now buying in adjacent trades on the same thesis:
Why the trades price differently
Owners often assume valuation multiples reflect how technical or difficult a trade is. They do not. Multiples reflect how predictable next year’s earnings are. Every difference in the table below traces back to one question: how much of this revenue arrives whether or not the company wins new work?
The ranking, and the reason for it
Pest control prices highest because it is a subscription. Customers are on recurring quarterly or monthly service with autopay, and revenue continues without a sale being made. HVAC comes next, with a seasonal replacement cycle, non-deferrable failure demand, and maintenance agreements. Electrical and plumbing follow, both carrying strong service components alongside project work that dilutes predictability. Roofing sits lowest on average, because outside commercial maintenance contracts most of its revenue is a one-time project won again from scratch each time.
| Profile | Typical EBITDA multiple | Notes |
|---|---|---|
| Pest control | 7x – 10x | Recurring subscription revenue with autopay. Priced closer to a software business than a trade. Churn and retention are the diligence focus. |
| HVAC | 4x – 8x | Seasonal replacement cycle, non-deferrable failure demand, maintenance agreements. Replacement mix and agreement penetration set the top end. |
| Electrical | 4x – 7x | Service work prices like HVAC; bid construction prices far lower. Master license transition is the common closing issue. |
| Plumbing | 4x – 7x | Emergency and drain work is premium and high margin. New construction rough-in is the discount line. |
| Roofing | 3x – 7.5x | Widest spread of any trade. Commercial maintenance contracts at the top, storm-driven retail at the bottom. |
| Landscaping and lawn care | 4x – 6.5x | Recurring contracted maintenance supports the range; one-time install and design work dilutes it. |
The four factors that outrank your trade
The table sets a starting band, but a well-run business in a lower-ranked trade regularly outprices a poorly run business in a higher-ranked one. Four things do most of that work.
- Recurring revenue share. Contracted or subscription revenue as a percentage of the total. This single number explains more valuation variance than trade selection does.
- Management depth. Whether the business operates for a month without the owner. The most common reason an otherwise strong company gets discounted.
- Financial quality. Accrual-basis statements with job-level costing that survive a quality-of-earnings review. Cash-basis books requiring reconstruction cost real multiple in every trade.
- Buyer competition in your market. The same business in Dallas and in a thinly covered secondary metro will see different numbers of real bidders, and price accordingly.
Size effects apply in every trade
Across all trades, crossing roughly $3M of adjusted EBITDA changes what you are to a buyer. Below it you are an add-on, valued for the density and territory you contribute to someone else’s platform. Above it you can be the platform itself, and buyers pay for an operating base rather than a customer list. That transition is typically worth two to four turns, which is why some owners choose to acquire or grow toward it rather than sell at $2M.
Multi-trade businesses
Companies running two or more trades under one roof, most commonly HVAC with plumbing or electrical, are valued on the blend, weighted by EBITDA contribution, usually with a modest premium for the cross-sell. Buyers verify that each trade is genuinely staffed and licensed rather than one trade with occasional work in another, because a thin second trade adds diligence complexity without adding value.
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Cross-trade valuation questions.
Which trade sells for the highest multiple?
Pest control, typically 7x to 10x adjusted EBITDA for owner-operated companies, because the revenue is a recurring subscription with autopay rather than a series of sales. HVAC follows at roughly 4x to 8x. Roofing has the lowest average but the widest range, since commercial maintenance businesses can reach 7.5x while storm-driven retail sits near 3x.
Why does pest control price higher than HVAC when the work is simpler?
Because multiples price predictability, not difficulty. A pest control customer on quarterly autopay generates revenue next year without anyone selling anything. HVAC has excellent characteristics, including non-deferrable demand and maintenance agreements, but a large share of its revenue still depends on equipment failing and a replacement being sold. Buyers pay more for the revenue they can forecast.
I run HVAC and plumbing together. How is that valued?
On a blended basis weighted by each trade’s EBITDA contribution, usually with a modest premium for cross-sell capability into an existing customer base. Buyers will confirm both trades are properly staffed and licensed with real revenue behind them. A second trade that amounts to occasional work adds diligence complexity without adding value.
Can a plumbing business outprice an HVAC business?
Regularly. A service-weighted plumbing company with strong drain and trenchless capability, a membership program, and a manager running the field will beat a mediocre HVAC company that is half new construction with the owner selling every job. Trade sets the starting band; execution decides where you land within and across bands.
How do I find out where my business sits?
Request a free confidential valuation. You provide financial basics and revenue mix, and we return the multiple range your specific profile supports along with the factors moving it in each direction. Nothing is listed and no buyer learns your identity unless you approve it.
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