HVAC, plumbing, electrical and commercial cleaning are the most commonly acquired small businesses for a reason: recurring demand, cash-based customers and earnings a first-time buyer can understand. Here is what they cost, what they earn, and what to check before you make an offer.
| Trade | Typical asking price | Owner earnings (SDE) | Common multiple |
|---|---|---|---|
| HVACHighest multiples in the group when maintenance agreements and licensed techs transfer with the business. | $300K – $2.5M | $120K – $600K | 2.5x – 4.0x SDE |
| PlumbingService-and-repair work is steadier than new construction, which follows the building cycle. | $250K – $1.8M | $100K – $450K | 2.3x – 3.5x SDE |
| ElectricalCommercial maintenance contracts smooth seasonality; heavy project work adds working-capital risk. | $250K – $1.5M | $90K – $400K | 2.2x – 3.4x SDE |
| Cleaning (commercial)Contract-based revenue is attractive, but labour turnover and customer concentration drive the price down. | $150K – $900K | $70K – $300K | 2.0x – 3.2x SDE |
Ranges are general market benchmarks for small North American businesses, not quotes for any specific company. Run your own numbers on the valuation tool.
Most buyers combine 10–20% cash, an SBA 7(a) loan (or a Canadian equivalent) and a seller note of 10–20%. Work backwards: your down payment plus closing costs and 3–6 months of working capital determines the price range you can actually reach.
Maintenance agreements, service plans and contracted cleaning routes are the single biggest quality signal. A business with 30%+ recurring revenue earns a higher multiple and survives a slow quarter far better than pure call-out work.
In most jurisdictions the trade licence belongs to a qualified individual, not the company. If the seller is the licence holder and is leaving, you need your own qualified person on payroll from day one, or the business cannot legally operate.
The crew is the asset. Ask for tenure by employee, current wages against local market rates, and whether the key techs know the business is for sale. Plan stay bonuses before closing, not after.
Take the seller's add-backs apart one by one. Owner salary and genuine one-off costs are fair; ongoing vehicle, phone, insurance and family payroll usually are not. Then price a replacement manager if you do not intend to run the vans yourself.
One property manager at 40% of revenue is a price adjustment, not a deal breaker — but it should be reflected in the multiple and often in an earn-out.
Vehicle age and mileage, deferred maintenance, tooling, and the state of the CRM or dispatch software all become your capital costs in year one. Review work-in-progress and warranty obligations too.
Ask for 60–90 days of seller training, a non-compete covering the service area, and an introduction plan to the top 20 customers. In home services, reputation moves with people.
Calgary, Alberta · Electrical Contracting
Established commercial and light-industrial electrical contractor with recurring maintenance agreements and a licensed crew.
Austin, Texas · HVAC
Long-established HVAC company with a general manager in place, a large maintenance-plan base and consistent replacement demand.
Phoenix, Arizona · Commercial Cleaning
Contract-based janitorial company serving offices, clinics and light industrial sites with mostly nightly recurring routes.
This guide is educational and uses general market benchmarks. It is not financial, legal, tax or investment advice. Verify every figure with the seller's records and your own advisors before making an offer.