Home Service Business Valuation Calculator

Determining your business worth requires a comprehensive look at multiple factors that contribute to your company's overall value. Key elements to consider include:

These components form the foundation of any professional business valuation. Potential buyers and investors will carefully analyze each factor when evaluating acquisition opportunities, making it essential to have detailed documentation and clear metrics for each area.

To generate the most accurate valuation estimate, our calculator requires specific financial and operational metrics from your business.

Pro tip: Use your most recent complete fiscal year for the most accurate results.

Our calculator provides a comprehensive analysis of your business value along with critical performance metrics that investors and buyers prioritize when evaluating acquisition targets.

Professional investors and buyers use EBITDA multipliers as the industry standard for valuation. Higher profitability signals lower risk, which translates to higher multipliers and better valuations. The strength of your recurring revenue significantly impacts this multiplier.

Service agreements, maintenance contracts, and subscription-based services demonstrate predictable cash flow and customer loyalty. Businesses with 50% or more recurring revenue often command premium valuations, as this revenue model reduces acquisition risk and provides stable, forecastable income streams.

Businesses without positive EBITDA aren't necessarily unsellable - they simply require different valuation methodologies. Asset-based valuations focus on the tangible value of your equipment, vehicles, tools, and property at current market rates.

When using asset-based valuation, buyers assess replacement costs for your entire operational infrastructure. Important note: existing debts on assets (equipment financing, vehicle loans) typically remain your responsibility and must be settled before or during the sale transaction.

Most acquisition deals include transition periods where founders stay involved for 12-24 months post-sale, ensuring knowledge transfer and operational continuity. Many buyers prefer partial acquisitions (70-90% ownership) to keep sellers invested in ongoing success.

Every transaction is unique. Focus on finding buyers whose vision aligns with your company's legacy and who respect your deal-breakers. Flexibility on negotiable points while standing firm on essentials leads to successful exits.

Whether your business represents generations of family dedication or years of personal sacrifice, achieving fair market value matters. Understanding your true business worth empowers better negotiation and ensures you're compensated appropriately for the value you've created.

This valuation calculator provides a data-driven foundation for exit planning. By identifying strength areas and improvement opportunities, you can strategically enhance your business value before entering sale negotiations.