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 →Valuation BenchmarksFebruary 2025 · 5 min read
Flooring Business Valuation 2025: What Flooring Companies Sell For
Flooring businesses sell for 2.0x–3.5x SDE. Commercial flooring with maintenance contracts and commercial accounts commands higher multiples than residential project work.
JT
Jason Taken
HedgeStone Business Advisors
Flooring businesses are project-driven by nature — customers don't typically buy new floors on a recurring schedule. This makes flooring one of the lower-multiple verticals in home services. However, flooring businesses with commercial accounts (facilities management, new construction programs, insurance restoration) can command better multiples than pure residential showroom businesses.
Flooring Business Multiple Benchmarks
Residential flooring (showroom/project): 2.0x–3.0x SDE. Revenue depends on remodeling activity, which is cyclical. Customer relationships are transactional. Commercial flooring (facility accounts, B2B): 2.5x–3.5x SDE. Commercial accounts often have repeat purchase patterns (annual refresh budgets, multi-location contracts). Installation-only (subcontractor): 1.5x–2.5x SDE. Limited leverage, high labor dependency.
Value Drivers in Flooring
What adds value to a flooring business: commercial facility management accounts (gyms, hospitality, senior living), insurance restoration partnerships (flooring after water damage), new home builder programs with production builders, a showroom with strong brand recognition and referral network, and experienced installation crews who don't depend on the owner to schedule or manage.
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