Home services M&A
Home services is one of the most-transacted sectors of the U.S. lower-middle market. Eight residential-services categories — HVAC, plumbing, electrical, roofing, pest control, landscaping, pool service, and garage door — attract active PE consolidation, national roll-ups, and owner-operator buyers.
Why home services attracts so much M&A activity
- Non-discretionary demand across most categories
- Fragmented market structure — thousands of independent operators, no dominant national brand in most sub-verticals
- Recurring service revenue models (service plans, contracts, routes) create real subscription-like economics
- Modern dispatch software, call tracking, and CRM tools created a decade of operating-leverage opportunity
- PE dry-powder overhang (~$3.7T globally per Preqin at Q1 2026) continues to drive platform-and-add-on strategies
The buyer types
PE-backed platforms
Consolidators; buy platforms $3M+ EBITDA and bolt-on smaller businesses to gain regional density
Strategic operators
National and regional multi-service platforms; pay premium for platform-fit and same-market tuck-ins
Search funds
Individual entrepreneurs; typically target $1.5–5M EBITDA single-market acquisitions
Owner-operators
SBA 7(a) financed; typical target sub-$1M SDE first acquisition
The eight verticals
Each vertical has its own multiple range, buyer landscape, and category-specific diligence issues. Click through for the details.
| Vertical | Sub-$1M EBITDA | $1–3M EBITDA | $3M+ EBITDA | Sample deal size |
|---|---|---|---|---|
| HVAC | 4.5x–6.0x | 6.0x–8.5x | 8.5x–11.0x | $1M–$50M EV |
| Plumbing | 4.0x–5.5x | 5.5x–7.5x | 7.5x–9.5x | $1M–$30M EV |
| Electrical | 4.5x–6.0x | 6.0x–8.5x | 8.5x–10.5x | $1M–$25M EV |
| Roofing | 3.5x–5.0x | 5.0x–7.0x | 7.0x–8.5x | $1M–$25M EV |
| Pest control | 5.0x–7.0x | 7.0x–9.5x | 9.5x–13.0x | $1M–$75M EV |
| Landscaping & lawn care | 4.0x–5.5x | 5.5x–7.0x | 7.0x–8.5x | $1M–$20M EV |
| Pool service | 4.5x–6.0x | 6.0x–7.5x | 7.5x–9.0x | $1M–$15M EV |
| Garage door | 4.5x–6.0x | 6.0x–7.5x | 7.5x–9.0x | $1M–$15M EV |
Multiples are on adjusted EBITDA. See the full 2026 Home-Services M&A Multiples Report for SDE multiples at sub-$1M and category-specific commentary.