How to Value a Home Services Business: The Complete Guide
SDE multiples, EBITDA multiples, revenue multiples — which method is right for your business? A comprehensive guide to home service business valuation.
Read Article →Appliance repair businesses sell for 1.5x–3.0x SDE. Factory service authorization and commercial appliance accounts drive the highest multiples.
Jason Taken
HedgeStone Business Advisors
Appliance repair is a steady, necessity-driven business with a modest multiple range. The wide range — 1.5x to 3.0x — reflects significant variation in business type: a one-man operation doing cash repairs is very different from an authorized factory service center with commercial laundry accounts.
Solo technician (owner is the only tech): 1.5x–2.0x SDE. Very limited buyer pool, buying a job. Multi-tech operation: 2.0x–3.0x SDE. Business has value beyond the owner. Factory-authorized service center (GE, Samsung, Whirlpool warranty work): 2.5x–3.5x SDE. Authorization creates predictable volume. Commercial laundry (laundromats, multifamily): 2.0x–3.0x SDE. Recurring commercial accounts.
Factory service authorization from major appliance brands is one of the most valuable assets an appliance repair business can have. Warranty work creates a predictable volume of jobs that arrives without marketing spend. Buyers understand this — and the authorization typically transfers with the business (subject to manufacturer approval). Businesses with multiple brand authorizations command higher multiples.
Appliance repair businesses where the owner is the only certified technician face a classic key-man problem. Buyers may need to obtain manufacturer certifications themselves or hire a certified tech before they can take over warranty work. Address this during the sale preparation phase — either certify a second technician or disclose the certification transfer requirements clearly.
SDE multiples, EBITDA multiples, revenue multiples — which method is right for your business? A comprehensive guide to home service business valuation.
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Read Article →No contact forms. No obligation. Direct access to Jason Taken, Business Broker.