Sell My Service Business in Arizona
Eddy Roche, Associate Broker · AZ license BR579487000 · HUB AZ / Sunbelt Arizona
Buyers pay for transferable cash flow. That means a crew that shows up, contracts that assign, and books a lender can read. Here is how I sell Arizona service and contractor companies.
What buyers actually pay for
HVAC, janitorial, landscaping, pest, IT services, trades. The buyer is not buying your truck wrap. They are buying cash flow that still exists after you leave. Landscaping files with recurring routes and a crew have their own page: sell my landscaping business Arizona.
That cash flow has to transfer. Recurring routes. Maintenance agreements. Bid lists that are not just your cell phone. A superintendent or lead tech who already runs the day. If the revenue walks out with you, we are selling a job, not a company.
I start with the last three years of tax returns and monthly P&Ls. Then I ask what assigns: contracts, crew, software, and any license the buyer needs to keep operating. A confidential valuation is the clean place to start.
SDE and owner-dependency
Service and contractor files price on Seller's Discretionary Earnings, not last year's top line. SDE is the cash a new owner-operator would take home: net profit, plus your salary, plus the add-backs that go away when you leave.
Owner-dependency is the multiple killer. If you estimate every job, hold every customer relationship, and sign every check, the buyer is buying your calendar. We document who does the work, who sells the next job, and what happens in the first 90 days after you step back.
Clean books help. If personal expenses run through the company, we list them. Buyers and lenders will ask. I would rather do that before we list than in due diligence.
Crew, WIP, and customer concentration
The crew is the transfer. Buyers want to know who stays, who is W-2 versus 1099, and whether the leads will follow the owner out the door. I want a simple org picture before we talk asking price.
Home care agencies are the extreme case, because the caregivers are the service and clients follow the person who comes to the house. That file is on selling a home health care business in Arizona.
Work in process matters on contractor files. Unfinished jobs, retainage, bonding, and change-order history all show up in diligence. A buyer will haircut a messy WIP schedule. A clean one is a reason to hold the price.
Customer concentration is the other haircut. One general contractor, one HOA, or one national account that is a third of revenue is a risk. Diversified routes and a mix of recurring and project work are easier to underwrite.
Want a straight read on the company?
Send the last three years of returns and a snapshot of contracts and crew. I will tell you what I see on price, concentration, and whether the file transfers. No listing appointment required.
Confidential listing
Word that a service company is for sale travels. Techs talk. Dispatch talks. A big account that hears it early starts taking bids.
I do not put your name, address, or customer list on a public listing. Marketing is a teaser. Buyers sign an NDA before they see identifying information. You choose when the crew hears it.
Usually that is after we have a serious buyer and a path to close, not on day one of marketing. How I run the full sale is on the process page.
Why service multiples often beat tired F&B comps
A tired restaurant is last night's covers, a lease assignment, and a liquor file. The cash flow resets every morning. The landlord and the liquor board each get a vote.
A service or contractor company with recurring contracts and a crew that already runs the day is cash flow a buyer can underwrite. There is usually no liquor transfer. The lease, if there is one, is an office or a yard, not the whole deal. That is why the multiple is often higher than a worn-out F&B comp with the same SDE.
I will not invent a market-average multiple on this page. The file decides: recurring mix, concentration, crew depth, and whether the books match the returns. I run your SDE and tell you what this market will actually pay.
If you are even thinking about a sale
You do not need to be ready to list. Send the returns, a contract snapshot, and who runs the crew. I will tell you what I see: price range, concentration risk, and whether the timing is right.
That is a conversation. Not a listing appointment. More about how I work. If you are still choosing representation, read how to choose an Arizona business broker.
Frequently Asked Questions
How is a service or contractor business valued in Arizona?
I price on Seller's Discretionary Earnings, then I look at recurring revenue, customer concentration, and how much the crew can run without you. A book of contracts that assigns is worth more than a book that lives in the owner's head.
When is a service business easier to sell?
When the processes are written down, the crew stays, customers are diversified, and the books match the tax returns. If you are the estimator, the closer, and the only license, we have work to do before we list.
Do I need a liquor license or a special transfer to sell?
Usually no. Most service and contractor sales are about contracts and crew, not a liquor board. Some niches need a contractor license, a registrar file, or another permit. We check that before we list. We do not build the deal around a Series 6 or 12.
How long does it take to sell a service business in Arizona?
Often cleaner than a restaurant or bar if the books and the crew are solid. It is still months, not weeks. Listing agreements I use on service and contractor files typically run 270 days. That is a working window, not a promise.
Will my employees and customers find out the business is for sale?
Not from the listing. Marketing starts as a teaser. Buyers sign an NDA before they get the name, the address, or the customer list. Your crew and your accounts should not hear it early.
Why use a local Arizona broker?
Pricing and buyer screening are local work. I am Eddy Roche, Associate Broker BR579487000, at HUB AZ Brokers and Sunbelt Arizona. I work across Arizona. Sunbelt puts the listing in front of buyers who already buy Main Street cash-flow businesses.
Ready to talk about the company?
Confidential. No obligation. I work service and contractor deals across Arizona.