A trades business in Alabama is worth a multiple of its earnings, the same math used everywhere. Smaller owner-operated shops sell on SDE, typically 2x to 4.5x depending on the trade, and larger, management-run companies sell on EBITDA at higher multiples. Where you land depends on how much the business depends on you.
The ranges by trade
| Trade | Typical SDE multiple | Typical EBITDA multiple (larger) |
|---|---|---|
| HVAC | About 2x to 3.3x | About 5x to 6x and up |
| Plumbing | About 2.4x to 4.5x | About 4x to 7x |
| Electrical | About 2.5x to 2.7x | About 4x to 5x |
| Construction / fabrication | Varies by backlog and specialty | Varies |
These are typical national market ranges, not a quote on your business.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute callWhat drives your number up
- Recurring revenue (maintenance agreements, service contracts).
- A business that runs without the owner.
- A trained, licensed crew that will stay.
- Clean, provable books.
- A diversified customer base.
The Alabama context
Alabama's growth markets, Huntsville's defense and aerospace economy, Birmingham's medical and commercial base, Mobile's industrial and port activity, and the Auburn and Montgomery corridors, support demand for trades and service businesses. A business positioned to serve that growth is attractive to buyers.
Getting a real number
A range is a starting point. To know your number, normalize earnings, apply the right multiple for your size and mix, and adjust for risk. I do confidential valuations for owners, with no obligation to sell.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute call