Home Services Business Valuation Calculator

This calculator uses a multi-step valuation methodology based on real home service business transaction data. It is not a simple revenue multiplier — it applies the same analytical framework professional business brokers use when pricing a business for market.

Step 1: Normalize Your Financials

We calculate your Seller Discretionary Earnings (SDE) by adding back owner compensation, one-time expenses, and personal expenses run through the business. For businesses with management teams, we calculate EBITDA as well. A weighted 3-year average is used to smooth out anomalous years.

Step 2: Select the Base Multiple

Each of the 28 home service verticals has a distinct multiple range derived from comparable transaction databases. We start with the mid-market multiple for your industry.

Step 3: Apply Value Driver Adjustments

Nine factors adjust your multiple up or down: recurring revenue percentage, revenue trend, owner hours (key-man risk), customer concentration, technology adoption, online reputation, employee stability, business size, and deal structure.

Step 4: Output Valuation Range

The result is a low, mid, and high valuation under three methodologies (SDE, EBITDA, revenue sanity check), plus deal structure scenarios (all-cash vs. seller note vs. earnout).

Important: This calculator provides an estimate based on market data. An actual Broker Opinion of Value (BOV) accounts for business-specific factors that a form cannot capture. We recommend using this as a starting point, then scheduling a free call with Jason Taken for a real BOV.