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 →Pressure washing businesses sell for 1.5x–3.5x SDE. Commercial route accounts and bundled cleaning programs drive the highest multiples.
Jason Taken
HedgeStone Business Advisors
Pressure washing businesses are among the most accessible home service businesses to start but among the most difficult to sell at premium multiples. The reason: low barriers to entry, easy replication, and primarily project-based revenue. However, pressure washing companies that build commercial route accounts with recurring revenue tell a very different valuation story.
Solo owner-operator (residential): 1.5x–2.0x SDE. Limited buyer pool, buying a job. Multi-crew residential (owner manages, doesn't wash): 2.0x–2.8x SDE. Commercial route accounts (parking lots, retail storefronts, restaurants): 2.5x–3.5x SDE. Recurring commercial contracts create the predictable revenue buyers pay premiums for. Bundled exterior cleaning (pressure washing + window + gutter): 2.0x–3.0x SDE.
The highest-value pressure washing businesses have commercial route accounts — retail centers, restaurant groups, property management companies, HOAs with parking lots and common areas — on monthly or quarterly service schedules. These accounts behave like subscriptions: predictable, low-churn, and valued at a premium. Converting 20–30% of revenue to commercial route accounts before selling can increase your multiple by 0.5x–1.0x.
Buyers know that a competitor with $5K in equipment can start a pressure washing business and undercut on price. This commoditization concern suppresses multiples for undifferentiated residential pressure washing. Differentiation — premium brand positioning, five-star reviews, specialized coatings, commercial contracts, or exclusive HOA relationships — is what separates premium-multiple businesses from average-multiple ones.
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 →Window cleaning businesses sell for 2.0x–3.5x SDE. Commercial route-based window cleaning with recurring contracts commands the highest multiples.
Read Article →No contact forms. No obligation. Direct access to Jason Taken, Business Broker.