# Legal Herald: Trades Business Sales

> How HVAC, plumbing, roofing, electrical, landscaping, cleaning and pest control companies are valued and sold, including licensing and deal terms.

Website: https://trades-business-sales.legalherald.com/
Part of: [Legal Herald](https://legalherald.com/llms.txt)
Last Updated: 2026-11-06

## Guide
- [Selling an HVAC, Plumbing or Trades Business: What Buyers Pay](https://trades-business-sales.legalherald.com/)

## FAQ

### What multiple do HVAC and plumbing businesses sell for?
Smaller owner-run HVAC and plumbing companies are usually priced on seller's discretionary earnings (SDE), and broker and marketplace data commonly put them in a range of roughly 2 to 3.5 times SDE. Larger companies with managers in place are priced on EBITDA and can draw higher multiples, especially from private equity-backed buyers. Recurring maintenance revenue and technician retention push the number up.

### Can my contractor license transfer to the buyer?
Usually not directly. In most states, trade licenses for HVAC, plumbing and electrical work are tied to a qualifying individual, and the business license depends on having that person in place. Buyers either bring their own licensed qualifier, hire one, or keep the seller on as qualifier for a period after closing. Check the rules with each state and local licensing board involved.

### Do private equity firms buy small home services companies?
Yes. HVAC, plumbing, electrical, pest control and landscaping have drawn steady interest from private equity-backed platforms that grow by acquisition. Platforms tend to want larger companies, but many also buy smaller add-on businesses in markets where they already operate.

### How do maintenance agreements affect the value of a service company?
Buyers value recurring service and maintenance agreements because they bring predictable revenue, keep technicians busy in slow seasons and lead to replacement sales. A company with a large base of active, renewing agreements will generally sell for more than a similar company that depends on one-time jobs.

### What happens to my warranties and open jobs when I sell?
The purchase agreement decides that. Buyers often take over open jobs and customer deposits with a price adjustment, and the parties negotiate who handles warranty callbacks on past work and how those costs are shared. Spell this out in writing before closing.

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