From Humble Beginnings to a Successful Exit: Selling Your Home Services Company
Posted on October 14, 2025
Home Services as the Next Big Wealth Builder
Some of the most lucrative entrepreneurial opportunities are hidden in familiar industries like home services. For many successful business owners, industries like roofing, HVAC, plumbing, and electrical contracting have proven to be enduring, profitable, and scalable. These businesses offer essential, recurring services that attract growing investor interest.
A 2025 Technavio report projects the global home services market to grow by $1.03 trillion between 2025 and 2029. With strong buyer demand and consolidation trends accelerating, business owners in this space have a unique opportunity to turn their years of hard work into long-term wealth.
At Florida Trust Wealth Management, our Family Office Services team partners with home service business owners to guide them through the strategic, financial, and legal complexities of selling their company. We guide you from valuation to exit—preserving and growing your hard-earned wealth.
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Valuation: Why EBITDA Is the Benchmark
One of the first steps in preparing to sell a business is understanding how buyers determine value. While Return on Investment (ROI) can demonstrate operational efficiency, the market standard for valuation is EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortization.
EBITDA reflects a business’s core profitability, stripped of owner-specific decisions, and serves as a neutral, comparable metric for buyers. Most small-to-mid-sized home services businesses trade at 3–6x EBITDA, influenced by:
• Revenue diversity and customer concentration
• Geographic footprint and scalability
• Strength of management beyond the owner
• Brand reputation and operational maturity
Normalizing EBITDA, removing personal expenses, one-time costs, and non-essential owner compensation, is key to presenting a clean, credible earnings picture and commanding a stronger multiple.
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Deal Structure: More Than Just the Multiple
Your payout depends not just on valuation, but also on deal terms, payment timing, legal factors, and taxes.
Important elements to consider:
• Escrow & Holdbacks: A portion of the purchase price is often withheld to cover liabilities post-closing.
• Earnouts: Tying part of the price to future performance may bridge valuation gaps but introduces risk.
• Reps & Warranties: Legal guarantees made by the seller can trigger post-sale liabilities if breached.
• Tax Structure: Asset vs. stock sale, payment timing, and rollover equity all impact your after-tax outcome.
The difference between a good deal and a great one lies in how it’s structured, not just the headline number.
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Maximizing Value Before You Sell
Buyers pay premiums for businesses that demonstrate growth potential, operational independence, and clean financials. To position your company for a successful sale:
1. Clean up the books: Normalize financials, remove personal expenses, and standardize reporting.
2. Reduce owner dependency: Strengthen your leadership team and document operational processes.
3. Craft a growth narrative: Highlight opportunities for expansion, new services, or geographic scaling.
4. Minimize red flags: Diversify revenue, resolve pending legal issues, and formalize key contracts.
Strategic preparation can increase both the multiple and the likelihood of a favorable deal structure.
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Why Expertise Matters
Selling your business is one of the most important financial decisions of your life. Yet many owners enter the process unprepared or without the right advisory support, often leaving significant value on the table.
Florida Trust Wealth Management’s Family Office Services team provides deeply experienced, objective guidance to help business owners:
• Navigate valuation, tax, and legal complexities
• Align deal structure with family and legacy goals
• Optimize timing and market strategy
• Maximize post-sale wealth outcomes
We act as your financial quarterback, coordinating with legal, tax, and M&A specialists to protect what you’ve built, and turn your success into lasting generational wealth.
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Florida Trust: Guiding Gulf Coast Entrepreneurs to Prosperity
Success in the home services industry isn’t just measured in profits; it’s about the legacy you create and the wealth you pass on.
As we near our 25th anniversary, Florida Trust continues building lasting relationships with Gulf Coast families, evidenced by a 98% client retention.
If you’re preparing to exit your business and want to ensure your legacy is protected, start the conversation today. Our Family Office Services team is here to help you navigate every step of the process—from valuation to closing—with clarity, strategy, and confidence.
Exit your business confidently, schedule a consultation with our Family Office Services team today.
James McArthur, EVP
Family Office Services
LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon this information as a substitute
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