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Market commentary Jan 2024

Valuation benchmarks for home-services acquisitions: ~50% of revenue for service, ~20% for construction

Operators discuss home-services M&A valuation heuristics: roughly 50% of annual revenue (3-4x) for pure service businesses versus ~20% for new-construction work, and warn that distressed new-construction plumbing companies often go to auction.

“So I usually feel pretty comfortable at 50 % of annual revenue for purchase price.”
Plumbing

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