What trades and service businesses sell for
Trades businesses are the acquisitions hiding in plain sight: thousands list every year, brokers publish real multiples, and the buyers are often the same tradespeople we finance utes and equipment for. Here is the pricing map.
The multiples, by trade
| Business | Owner-operated | Systemised / managed |
|---|---|---|
| Electrical | 1.5 to 2.5x earnings | 2.5 to 4.5x |
| Plumbing | 2 to 3x | 3.5 to 5x at scale |
| HVAC / mechanical services | 2.5 to 5x | 5 to 9x with recurring maintenance |
| Commercial cleaning | 2 to 3x | 3.5 to 7x with sticky contracts |
| Pest control | 2 to 3x | 3 to 5x |
| Security (monitoring books) | priced on recurring revenue: ~20 to 40x monthly monitoring income | |
Concrete anchors: electrical goodwill runs $30,000 for a one-van operation to $1.5m plus for a 20-staff commercial firm; a $300,000-profit pest business prices $900,000 to $1.5m; HVAC platforms with recurring maintenance books have transacted at 5 to 9 times in named deals. The pattern across every trade: contracts are the multiple. Recurring maintenance revenue, government panels and healthcare contracts add whole turns of earnings; owner dependency, single-client concentration and ad-hoc work strip them away.
The licence and settlement wrinkle
Trade licences are personal and state-based: a plumbing purchase needs a nominee registered at settlement, typically a four to eight week lead, and electrical is comparable. Build the licence path into the settlement timeline before the finance clock starts.
How goodwill gets financed
Published lender behaviour: banks rarely fund more than 50 to 70% of goodwill, deposits run 20 to 30%, vendor finance commonly bridges the gap and signals the seller's confidence, and secured acquisition money prices from around 7% with property behind it against 9.5% plus unsecured. Which is the whole playbook in one line: the vehicles and equipment in the deal write on chattel mortgage, the goodwill leans on property equity at roughly 6% to 9% p.a. as a working rule, and the earnings must cover the lot. Property-backed borrowers generally price around 6% to 9% p.a. and non-property-backed deals around 9% to 13%, with approvals commonly back in 24 to 48 hours. Start at business acquisition finance.
Frequently asked questions
What does a trades business sell for in Australia?
Owner-operated trades price at roughly 1.5 to 3 times earnings; systemised businesses with staff and recurring contracts reach 3.5 to 5 times, and HVAC platforms with maintenance books have transacted at 5 to 9 times.
What makes a trades business worth a higher multiple?
Recurring contracted revenue above all: maintenance agreements, government panels and healthcare contracts add whole turns, while owner dependency and single-client concentration strip them away.
Can I finance the goodwill when buying a trades business?
Partly: lenders rarely fund more than 50 to 70% of goodwill, so deals combine a 20 to 30% deposit, property equity behind the goodwill, vendor finance, and asset finance on the vehicles and equipment.
What is the licence trap when buying a trade business?
Licences are personal and state-based: plumbing and electrical purchases need a nominee licence-holder registered at settlement, typically a four to eight week lead to build into the timeline.
Contracts, licences and the funding stack
Tell us the business and the book and we will come back with the full structure, vendor finance included, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.