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Contractor · Valuation13 trades · 3 scale brackets · every multiple externally sourced

What EBITDA multiple can a contractor sell for, and what moves it?

Small tuck-in acquisitions are reported at roughly 2.9x to 8x EBITDA, regional platforms at 4x to 12x, and scaled national platforms at 7x to 20x. Find your trade in the table below. Then move to the part a broker cannot answer: four operating numbers decide where inside that range you land, and they are recurring-revenue profitability, job-level margin, working capital, and customer concentration.

The same trade sells at 4x and at 18x because the multiple is not a price for your trade. It is a price for your scale bracket and for how durable your earnings look once somebody rebuilds them from your own records. Every multiple here comes from a named external source with a link. Level does not measure transaction multiples and publishes none of its own; what Level contributes is the operating half.

What is the single biggest driver of a contractor’s multiple?

Recurring revenue that is genuinely profitable. In five of these 13 trades the top multiple band is defined by that one variable, and two of them name the threshold outright at 40% of revenue.

Fire and life safety runs from 4x for a project-heavy bolt-on to 17x or 20x for a national platform, and the published dividing line at the middle band is 40% of revenue from inspection and monitoring. Low-voltage security is the same shape, and it goes further: security monitoring recurring revenue trades separately at 30x to 50x of monthly recurring revenue. HVAC, doors and access, and landscaping follow the same pattern.

Here is the part a transaction database cannot tell you. Level measures a median service-agreement gross margin of 37.9% (n=259) against a top quartile of 53%. So the recurring revenue that earns the premium band is not the recurring revenue on your invoice list. It is the part that still holds margin once technician hours are fully burdened, and a buyer will compute that themselves before they price it.

What EBITDA multiple does each contractor trade sell for?

Reported ranges run from 2.9x for a small glass and glazing shop to 20x for a national fire and life safety or plumbing platform. The lowest brackets are the bid, one-time trades (concrete and masonry at 3.1x, glass and glazing at 2.9x, commercial cleaning at 2.5x). The highest are the trades where revenue recurs on a contract or a code schedule (fire and life safety and low-voltage security to 20x, HVAC to 18.5x, doors and access to 16x).

Multiples are externally sourced per trade, with the source and link in the last column. The two operating columns are directional Level operator bands, the same values our public margin and DSO calculators use, so one metric carries one value across the whole site. Where a trade has no Level band, the cell says so rather than borrowing a neighbor's number.

Every multiple on this page is externally sourced and is stated as EV/EBITDA unless the source states otherwise. Level does not measure transaction multiples and does not publish one. Ranges are what named advisors and transaction databases report, so they lag the market by a quarter or more and they widen in both directions on individual deals.

Three different multiples for the same trade can all be true, because each prices a different asset. The tuck-in and regional brackets on this page are private M&A transactions for a whole company. The national-platform bracket is an institutional recapitalization of a scaled, professionally managed group. Separately, public MEP contractors have traded in the 15x to 34x range on the stock market, which prices a liquid minority stake in an audited public company and is not a price a private owner will be offered. Compare yourself to the bracket that matches your scale and your buyer type. We wrote up that public-versus-private gap separately in why public contractors trade at 15x to 34x while you will hear 4x to 8x.

EBITDA multiple ranges by contractor trade and scale bracket, with directional gross margin and days sales outstanding bands
TradeTuck-in add-onRegional platformNational platformGross margin, median (scope in cell)DSO, median days (blended service + project)Multiple source
HVAC4x to 8x7x to 11x15x to 18.5x and above38% (service-heavy)62 days (blended)Capstone Partners HVAC Services Sector M&A Update (2026); Forbes Partners HVAC M&A Industry Update (2025); First Page Sage, EBITDA Multiples for Private HVAC Companies (2025) verify
Plumbing3.5x to 6.5x6x to 11x16x to 20x36% (service-heavy)58 days (blended)CT Acquisitions, Plumbing Business Valuation in 2026 (2026); Main Street Wealth and First Page Sage, EBITDA Multiples Across Home Services (2026); Lightning Path Partners, Plumbing EBITDA Multiples (2026) verify
Electrical3x to 5x5.5x to 8x8x to 12x and above34% (service-heavy)65 days (blended)GF Data via BMI Mergers & Acquisitions, Electrical Contractor M&A Rebounds (2025); CT Acquisitions, Electrical Contractor Valuation (2026); Capstone Partners, HVAC and Electrical Services M&A Sector Updates (2024 to 2026) verify
Roofing3x to 5x4x to 10x8x to 12x and above38% (residential)68 days (blended)CT Acquisitions Roofing M&A Multiples Report (2026); GF Data and PitchBook transaction databases (2024 to 2026); Focus Investment Banking quarterly commentary (2026) verify
Commercial cleaning and janitorial2.5x to 4.5x4x to 8x7x to 12xno Level bandno Level bandCT Acquisitions Commercial Cleaning Valuation Analysis (2026); Breakwater M&A, Cleaning and Janitorial Valuation Multiples (2026); CleanLink, How Private Equity Views the Janitorial Industry (2024) verify
Landscaping and grounds maintenance3x to 6x7x to 12x12x to 15x32% (blended maintenance and install)50 days (blended)Livingstone Partners, Commercial Landscaping Industry PE Trends (2024); First Page Sage, EBITDA Multiples for Private Landscaping Companies (2025) verify
Painting and wall finishes3x to 6x5x to 7x and aboveup to 11x28% (blended)60 days (blended)CT Acquisitions, Painting Business Valuation Guide (2026); First Page Sage, EBITDA and Valuation Multiples for Construction Companies (2024); Peak Business Valuation, Valuation Multiples for a Painting Business (2025) verify
Concrete and masonry3.1x to 4x6.5x to 8xnot separately reported22% (blended, bid work)70 days (blended)Peak Business Valuation, market multiples for concrete contractors and masonry businesses; Builder Muse, Construction M&A and PE Roll-ups (2026) verify
Glass and glazing2.9x to 4.2x5.7x to 7.1x9x to 10.9xno Level bandno Level bandPeak Business Valuation (2025) for small glass and glazing contractors; GF Data (2026) NAICS 238 specialty-trade cohorts; Brown Gibbons Lang & Co. with Glass Magazine and PCE Investment Bankers for platform-level building products verify
Doors and access systems3.5x to 5x6.5x to 12x12x to 16x and aboveno Level bandno Level bandPitchBook, PE hopes garage door roll-ups will be the new HVAC (April 2026); FMI, Private Equity Sector Brief: Overhead and Garage Doors (March 2026); CT Acquisitions, Garage Door PE Roll-Up and M&A Report (2026) verify
Low-voltage and commercial security3x to 5x5x to 12x and above13x to 20xno Level band68 days (blended)Capstone Partners, Security Solutions M&A Update (2024 to 2026); PE Hub, PE-backed fire safety platforms ignite strong valuations (2025); CT Acquisitions, Low-Voltage M&A: Platforms, Multiples, and Consolidation (2026); Security Sales & Integration (2026) verify
Fire and life safety4x to 6.5x6x to 9x10x to 20x28% (blended install and inspection)64 days (blended)PE Hub (2025); Breakwater M&A, 2026 Valuation Multiples for Fire Alarm and Life Safety Companies; CT Acquisitions, Private Equity Fire & Life Safety 2026 Consolidation Report verify
Restoration and remediation4x to 6x5x to 7x7x to 11x and aboveno Level bandno Level bandCT Acquisitions M&A Guide (2026); Capstone Partners Industrial & Environmental Services M&A Update (2025); Hyde Park Capital Disaster Restoration Report (2023) verify

Scale brackets. Tuck-in is a small add-on, generally under $1M to $3M of EBITDA. Regional platform is a lower-middle-market platform or a platform-quality add-on. National platform is a scaled multi-state business, a recapitalization, or an institutional exit. Each trade card below states the exact EBITDA scope the source attached to each bracket.

Operating columns. Directional Level operator bands, not a measured distribution, so no sample size is claimed. Gross-margin bands below are directional operator observations at the trade level and are service-weighted where a trade splits into service and project work. They are not the same measure as Level's job-level gross margin (44.3% per job), which is measured per completed job on a blended cross-trade pool, nor as a public company's consolidated gross margin, which blends construction, service, and in some cases manufacturing.

Which numbers actually move my multiple?

Four, and they are all operating numbers rather than deal numbers: recurring revenue that still holds margin after fully burdened labor, job-level margin a buyer can rebuild from your own records, working capital tied up in uncollected billing, and customer concentration.

An advisor sets the range. These four decide where inside it you land, and they appear below in the order a buyer tests them. Each is a number Level measures, so each comes with where the typical contractor actually sits and with the specific artifact diligence will ask for.

1

Recurring revenue that is actually profitable

The single largest bracket jump on this page

Across HVAC, fire and life safety, low-voltage, doors, and landscaping, the top multiple band is defined by recurring revenue share, and two of those trades name a threshold outright: 40% of revenue from inspection, monitoring, or service agreements. The catch is the second word. Level measures a median service-agreement gross margin of 37.9% (n=259) against a top quartile of 53%, so a large share of agreement revenue sits at margins a buyer will not capitalize at a premium.

How a buyer tests it: Agreement count, renewal rate, and gross margin per agreement after fully burdened labor, not the quoted margin.

Service agreement benchmarks
2

Job-level margin a buyer can rebuild

Sets whether your reported EBITDA survives quality of earnings

Level measures a median job-level gross margin of 44.3% across 1,747,089 completed jobs from 1,791 companies, and inside that, 6.2% of jobs finish negative and 16% finish under 20%. Those jobs are invisible in a company-level margin. A quality-of-earnings provider will rebuild margin from job cost, and if job cost is not attached to job revenue in your system, they rebuild it conservatively.

How a buyer tests it: A margin distribution by job, not a company average, with actual cost attached to each job.

Labor and job margin benchmarks
3

Working capital, which comes straight off the price

Funded at close, dollar for dollar

Level measures a median collection rate of 85.1% (n=464) with a top quartile of 92.7% and a top decile of 96.0%. On $10M of billings, moving from median to top decile is roughly $1.1M less trapped in receivables. A buyer funds the working-capital peg at close, so uncollected billing is not a soft problem, it lands in the purchase price or in an escrow.

How a buyer tests it: Aged receivables with a collection rate by cohort, plus retainage tracked contract by contract.

Collection and DSO benchmarks
4

Customer concentration

The most common reason a multiple gets discounted

Level measures a median of 31.0% of revenue from the largest single customer (n=959), with p75 at 54.6% and p90 at 82.4%. Above roughly half of revenue in one account, buyers stop paying a platform multiple and start structuring earnouts, because they are pricing the risk that the relationship belongs to the seller rather than to the company.

How a buyer tests it: Revenue by customer for three years, with the contract or program agreement behind each of the top five.

The Level Index for contractors

Where does the typical contractor actually sit on those four numbers?

The median contractor collects 85.1% of what it bills (n=464), earns 37.9% gross on service agreements against a 53% top quartile (n=259), runs 44.3% gross margin per job with 6.2% of jobs finishing negative, and carries 31.0% of revenue in one customer (n=959). Those are the four gaps a buyer prices.

Each of these is Level measured with its own sample size, and each is published in contractor.json. They are shown here because they are the numbers a buyer rebuilds. For the full cross-trade index, including labor-hour variance, closeout lag, and seasonality, see The Level Index for contractors; this page carries only the subset that moves a multiple.

These five are Level-measured and blended across HVAC, plumbing, electrical, mechanical, refrigeration, and fire protection. Level does not publish a per-trade split of its own dataset, so read them as the cross-trade operating anchor, not as a trade-specific figure. The trade-specific rows in each card below are either externally sourced with a URL or labeled directional.

Level-measured contractor operating metrics and why each one moves a valuation multiple
MetricLevel medianDefinition & distributionWhy it moves the multiple
Median collection rate85.1%Level measured, n=464Cash collected as a share of billed revenue. Top quartile 92.7%, top decile 96.0%, bottom quartile 70.7%.A buyer funds working capital at close. Every point of uncollected billing is a point of working capital the buyer has to carry, so it comes out of the purchase price or lands in an escrow.
Median service-agreement gross margin37.9%Level measured, n=259Gross margin on recurring service-agreement revenue. Top quartile 53%.Recurring service revenue is the single most repeated reason a platform pays a premium. A buyer will not pay a recurring-revenue multiple on agreements that are unprofitable once labor is fully burdened.
Median job-level gross margin44.3%Level measured, 1,747,089 completed jobs across 1,791 companiesGross margin per completed job, revenue minus actual cost, measured per job across 1,747,089 completed jobs from 1,791 companies. 6.2% of jobs finish at a negative margin and 16% finish under 20%.Quality of earnings starts here. If job cost is not attached to job revenue in your system, the buyer rebuilds your margin themselves, and the rebuilt number is almost always lower than the reported one.
Median quote conversion (decided quotes)73.9%Level measured, n=794Won divided by won plus lost, excluding still-pending quotes. 38.1% across all quotes issued.Conversion is how a buyer sizes the growth case without taking your word for it. A documented pipeline with a stable close rate supports a forecast; a verbal one does not.
Median revenue from largest single customer31.0%Level measured, n=959Share of total revenue from the top one customer. p75 is 54.6% and p90 is 82.4%.Concentration is the most common single reason a multiple gets discounted or a deal gets restructured into an earnout. A buyer prices the risk that the top account leaves with the seller.
All-contractor net profit before tax6.3%External: CFMA 2024 (n=1,290)Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment. Top quartile about 11.9%.It sets the denominator. A buyer applying an 8x multiple to a 6.3% net margin is paying about half a turn of revenue, which is why a two-point margin improvement is worth more than two points of growth in most contractor deals.

How will a buyer test my numbers in diligence, trade by trade?

By rebuilding them from source records rather than accepting your reports. Expect a quality-of-earnings pass that ties revenue to invoices and cost to job records, a working-capital analysis on aged receivables and retainage, a revenue-by-customer schedule for three years, and for any recurring-revenue claim, a contract-by-contract schedule with term, renewal history, and margin per contract. The trade-specific version of each test is in the cards below.

Each card carries the three scale brackets with the EBITDA scope the source attached to them, who is actually buying, the operating attribute that explains the spread, and how a buyer verifies that attribute from source records. Every row is badged with its provenance.

Tuck-in add-on

4x to 8x

$1M to $5M EBITDA add-on or tuck-in

Regional platform

7x to 11x

$5M to $25M EBITDA lower-middle-market regional platform

Capstone Partners reports a 9.5x EV/EBITDA average across HVAC services transactions for 2024 to 2026.

National platform

15x to 18.5x and above

national platform with high service-agreement density, institutional recapitalization

External source Multiples: Capstone Partners HVAC Services Sector M&A Update (2026); Forbes Partners HVAC M&A Industry Update (2025); First Page Sage, EBITDA Multiples for Private HVAC Companies (2025). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Service-agreement density is the whole ballgame. The gap between the tuck-in band and the platform band is roughly 8 to 11 turns of EBITDA, and the single attribute that separates them is the share of revenue under a recurring maintenance agreement that is genuinely profitable.

How a buyer tests it in diligence

  • Recurring revenue proof: agreement count, renewal rate, and gross margin per agreement after fully burdened technician hours, not the quoted margin.
  • Maintenance pull-through: the repair and replacement revenue an agreement customer generates versus a non-agreement customer, traced customer by customer.
  • Install versus service margin split, computed from actual job cost rather than from a revenue category label.

Who is buying

The most consolidated of the trades. PitchBook counted a record 55 private-equity HVAC platform deals in 2024, a 72% increase year over year, and more than 60 deals in the first half of 2025. Sponsors buy local and regional operators as add-ons, build route density, then recapitalize the platform at a higher multiple.

Named platforms and deals: Apex Service Partners (Alpine Investors, with an Apollo Global Management investment in May 2026 at roughly $10B enterprise value, after about 60 add-ons in 2025 alone); Champions Group (Blackstone, February 2026, roughly $2.5B enterprise value at about 18.5x EBITDA); Sila Services (Goldman Sachs Alternatives majority recapitalization, November 2024, roughly $1.7B); Service Logic (Bain Capital and Mubadala, December 2025, over $1B).

Operating benchmarks for hvac

HVAC operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (HVAC, service-heavy)38% median, 48% top quartile, 28% bottom quartile, scope: service-heavyRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.Service / replacement contractors run higher GP because labor is the moat.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band62 days median, 38 days top quartile, 95 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).Commercial HVAC service companies skew faster (38-62) when service-heavy; project-only firms run 75-95.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: Capstone Partners, HVAC Services Sector M&A Update (2026); First Page Sage, EBITDA Multiples for Private HVAC Companies (2025); Main Street Wealth, HVAC Buyer List 2026 (PE platforms, strategics, sponsors)

Tuck-in add-on

3.5x to 6.5x

under $2M EBITDA add-on

Regional platform

6x to 11x

$2M to $10M EBITDA platform-quality regional business

National platform

16x to 20x

national platform recapitalization

Blackstone acquired Champions Group at about 18.5x EBITDA, a combined plumbing, HVAC, and electrical residential platform.

External source Multiples: CT Acquisitions, Plumbing Business Valuation in 2026 (2026); Main Street Wealth and First Page Sage, EBITDA Multiples Across Home Services (2026); Lightning Path Partners, Plumbing EBITDA Multiples (2026). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Membership and service-plan revenue, plus the share of work that is non-discretionary emergency demand. A plumbing book that is mostly new-construction rough-in prices closer to the tuck-in band no matter how large it is, because the revenue does not repeat.

How a buyer tests it in diligence

  • Membership plan economics: active member count, monthly value, churn, and the margin on the visits the plan entitles a customer to.
  • Emergency versus scheduled versus new-construction revenue mix, taken from job records rather than from a self-reported estimate.
  • Whether dispatch and drive time are costed to the job. Residential service books routinely overstate margin by leaving them in overhead.

Who is buying

More than half of the largest US plumbing companies are private-equity backed, while over 75% of operators overall remain independent. Sponsors have put over $25B into residential home-services platforms across the past eight years, usually rolling plumbing together with HVAC and electrical into one multi-service residential brand.

Named platforms and deals: Apex Service Partners (Alpine Investors, $3.4B continuation vehicle); Champions Group (Blackstone, February 2026, roughly $2.5B at about 18.5x); Sila Services (Goldman Sachs Alternatives, November 2024, roughly $1.7B); Wrench Group (Leonard Green, TSG Consumer, Oak Hill); Redwood Services (Altas Partners).

Operating benchmarks for plumbing

Plumbing operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (Plumbing, service-heavy)36% median, 46% top quartile, 26% bottom quartile, scope: service-heavyRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band58 days median, 40 days top quartile, 88 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: CT Acquisitions, Plumbing Business Valuation in 2026; Main Street Wealth and First Page Sage, EBITDA Multiples Across Home Services (2026); Lightning Path Partners, Plumbing EBITDA Multiples (2026)

Tuck-in add-on

3x to 5x

under $1M EBITDA, often priced off SDE rather than EBITDA

Regional platform

5.5x to 8x

$1M to $8M EBITDA lower-middle-market operator

GF Data reports averages of 6.2x to 6.4x for businesses at $3M to $8M EBITDA and 7.8x for platforms above $8M.

National platform

8x to 12x and above

data-center, utility-infrastructure, or mission-critical power specialist

External source Multiples: GF Data via BMI Mergers & Acquisitions, Electrical Contractor M&A Rebounds (2025); CT Acquisitions, Electrical Contractor Valuation (2026); Capstone Partners, HVAC and Electrical Services M&A Sector Updates (2024 to 2026). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

End-market mix, more than size. The same $4M of EBITDA prices near 6x as a general commercial electrician and near 10x as a qualified data-center or mission-critical power contractor, because the buyer is underwriting a different demand curve.

How a buyer tests it in diligence

  • Backlog quality: signed versus verbal, margin per project in backlog, and how much of it depends on one general contractor.
  • Work-in-progress accuracy. Over-billing and under-billing schedules are where a buyer finds that reported profit was borrowed from a future period.
  • Certification and qualified-personnel depth for premium end markets, because the premium multiple attaches to the capability, not to the revenue.

Who is buying

Financial sponsors account for roughly 75% of all electrical contractor M&A according to PitchBook, and lower-middle-market deal volume rose 13% in 2024 before expanding again through 2025 and 2026. The demand driver is specific: data-center buildout, grid modernization, and commercial electrification, against a hard technician shortage.

Named platforms and deals: Apex Service Partners (Alpine Investors, Apollo investment at roughly $10B enterprise value, May 2026); Truelink Capital and Prime Electric (January 2026 platform deal); MYR Group (NASDAQ: MYRG) acquiring Valley Electric and Comet Electric for $328M (October 2025); Platte River Equity and Team UIS (January 2026); Huron Capital and RK Electric; Broad Sky Partners and Commonwealth Electrical Technologies.

Operating benchmarks for electrical

Electrical operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (Electrical, service-heavy)34% median, 42% top quartile, 24% bottom quartile, scope: service-heavyRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band65 days median, 42 days top quartile, 98 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: BMI Mergers & Acquisitions with GF Data, Electrical Contractor M&A Rebounds (2025); CT Acquisitions, Electrical Contractor Valuation (2026); Capstone Partners, HVAC and Electrical Services M&A Sector Updates

Tuck-in add-on

3x to 5x

under $1M EBITDA add-on or tuck-in

Regional platform

4x to 10x

$1M to $3M EBITDA at 4x to 7x; $3M to $10M platform-quality residential or commercial at 6x to 10x

National platform

8x to 12x and above

large commercial platform with recurring maintenance contracts and a multi-state footprint

External source Multiples: CT Acquisitions Roofing M&A Multiples Report (2026); GF Data and PitchBook transaction databases (2024 to 2026); Focus Investment Banking quarterly commentary (2026). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Whether the earnings repeat. Commercial roofing with recurring maintenance and inspection contracts reaches the top band; storm-chasing residential volume does not, because a buyer normalizes a storm year down to trend before applying any multiple.

How a buyer tests it in diligence

  • Storm-year normalization: revenue and margin by year with catastrophe-driven work isolated, so the buyer can see the underlying trend line.
  • Warranty and callback reserve. Roofing carries long warranty tails, and an under-reserved book is a direct purchase-price adjustment.
  • Recurring maintenance and inspection contract schedule, with the renewal history and the margin on each contract.

Who is buying

Private-equity-backed roofing platforms went from 17 at the start of 2023 to 56 by the end of 2024, and sponsors completed 134 roofing acquisitions in 2024, roughly one every 48 hours. The top five contractors control under 10% of the market and repair and replacement is about 64% of volume.

Named platforms and deals: Tecta America (Altas Partners), the largest private-equity-backed commercial platform at over $960M in revenue, with acquisitions including Alpine Roofing and Texas Roofing; Roofing Corp of America (HGGC); Latite Roofing (Sun Capital Partners, 2025); Leaf Home and Erie Home combination (Ares Management, Apollo Global Management, Gridiron Capital); on the distribution tier, QXO acquiring Beacon Roofing Supply for $11B and Home Depot acquiring SRS Distribution for $18.25B.

Operating benchmarks for roofing

Roofing operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (Roofing, residential)38% median, 48% top quartile, 28% bottom quartile, scope: residentialRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.Residential band shown. Commercial roofing runs materially thinner on gross margin, median around 24% (Level operator observation, directional).DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band68 days median, 45 days top quartile, 100 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).Roofing tends to bottleneck on insurance claims and GC payment cycles.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: CT Acquisitions, Roofing M&A Multiples Report and Private Equity Tracker (2026); Roofing Contractor, Tariffs, Talent and Tech: The New Rules of Roofing Consolidation (2025)

Tuck-in add-on

2.5x to 4.5x

under $1M EBITDA owner-operated local provider, often priced off SDE

Regional platform

4x to 8x

$1M to $5M EBITDA established janitorial with recurring contracts at 4x to 6x; $5M to $10M regional or specialty (healthcare, cleanroom, industrial) at 5x to 8x

National platform

7x to 12x

$10M+ EBITDA nationwide platform

External source Multiples: CT Acquisitions Commercial Cleaning Valuation Analysis (2026); Breakwater M&A, Cleaning and Janitorial Valuation Multiples (2026); CleanLink, How Private Equity Views the Janitorial Industry (2024). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Contract term and account retention. This is the lowest-multiple trade on the page and the reason is structural: labor is 50% to 90% of job cost, so there is little operating cushion, and month-to-month accounts can leave the week after close.

How a buyer tests it in diligence

  • Contract schedule with remaining term, notice period, and pricing escalator per account. Month-to-month revenue is discounted hard.
  • Account turnover history. The BSCAI 2024 survey found 73% of firms lose under 10% of accounts a year, so a higher loss rate reads as a red flag rather than as normal.
  • Labor as a share of job cost per account, and whether supervisor and travel time are costed to the account or buried in overhead.

Who is buying

A market above $100B split across tens of thousands of local and regional operators. Sponsors build route density and centralize back-office work, which is where the margin expansion in their model comes from.

Named platforms and deals: ServiceMaster Brands (Roark Capital, built past $5.5B enterprise value across commercial cleaning and restoration); The Facilities Group (Greenbriar Equity Group, add-ons including Excel Building Services and Summit Service Group); Pritchard Industries (Littlejohn & Co.); 4M Building Services (O2 Investment Partners, acquiring Miracle Clean Services and FKI Cleaning Services in 2025); Kellermeyer Bergensons Services (Cerberus Capital Management); Kleen-Tech Services (Rainier Partners).

Operating benchmarks for commercial cleaning and janitorial

Commercial cleaning and janitorial operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Labor as a share of total job cost50% (light touch) to 90% (pure janitorial cost)Direct cleaning labor as a share of total job cost by service type. Standard office work is around 65%, healthcare and specialty around 75%.External sourceBSCAI production-rate guidance and FMLink janitorial staffing benchmarks verify
Days sales outstanding45 days healthy for an SMB operator, about 60 days at large integrated-facilities scaleDays sales outstanding. The large-scale figure is derived from ABM's FY2024 filing; the SMB targets are industry working-capital guidance, not a measured distribution.External sourceABM FY2024 10-K plus industry working-capital guidance verify
Annual account turnover73% of firms lose under 10% of accounts per yearShare of surveyed firms by annual account-loss bucket. 12% lose 11% to 15%, 6% lose 16% to 20%, 5% lose 21% to 50%, and 4% lose over half.External sourceBSCAI 2024 Industry Market Study verify
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: CleanLink, How Private Equity Views the Janitorial Industry (2024); Breakwater M&A, Cleaning and Janitorial Valuation Multiples (2026); CT Acquisitions, Commercial Cleaning Valuation Analysis (2026)

Tuck-in add-on

3x to 6x

$500K to $1M EBITDA local operator or tuck-in, 2.5x to 5x on SDE

Regional platform

7x to 12x

$1M to $10M+ EBITDA scaled lower-middle-market platform candidate

National platform

12x to 15x

high-performing commercial maintenance platform at exit

External source Multiples: Livingstone Partners, Commercial Landscaping Industry PE Trends (2024); First Page Sage, EBITDA Multiples for Private Landscaping Companies (2025). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Contract maintenance share versus one-time design and install. The spread from 3x to 12x tracks almost entirely to how much of the book renews without being re-sold each spring.

How a buyer tests it in diligence

  • Maintenance contract base: annual contract value, renewal rate, and whether escalators keep pace with wage growth.
  • Seasonality and the winter revenue plan. A book that earns most of its revenue in three months needs a credible off-season cash story.
  • Crew-level gross profit per hour, because in a labor-constrained trade the buyer is underwriting productive capacity, not just revenue.

Who is buying

Between roughly 640,000 and 700,000 mostly local operators, with the top 50 companies holding only about 20% of the market. Sponsors are drawn to high cash conversion and to contract maintenance, lawn-care subscriptions, irrigation, and snow removal, all of which recur.

Named platforms and deals: Yellowstone Landscape (Harvest Partners in 2019, then a Neuberger Berman Capital Solutions recapitalization in December 2024); SavATree (Apax Partners from CI Capital, 2021); BrightView Holdings (NYSE: BV), the public commercial leader originally assembled through private-equity consolidation; Elevation Landscape Group (Trinity Hunt Partners, May 2026); Exscape Group (BHMS Investments).

Operating benchmarks for landscaping and grounds maintenance

Landscaping and grounds maintenance operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (Landscaping / hardscape)32% median, 42% top quartile, 22% bottom quartile, scope: blended maintenance and installRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band50 days median, 30 days top quartile, 80 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
Revenue per employee$123K industry average, about $156K at firms above $10M, $180K top quartileAnnual revenue divided by total employees. The single cleanest productivity read a landscape buyer uses.External sourceNALP 2025 Financial Benchmark Report (n=142 firms) verify
Net profit marginabout 12% well-run, 15% top quartileNet profit as a share of revenue. BrightView, the public commercial operator, ran about 2% at scale, which is a different capital and mix model from a private maintenance shop.External sourceNALP 2025 Financial Benchmark Report; IBISWorld Landscaping Services 2025; BrightView FY2025 10-K verify
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: Livingstone Partners, Commercial Landscaping Industry PE Trends (2024); First Page Sage, EBITDA Multiples for Private Landscaping Companies (2025)

Painting and wall finishes

Tuck-in add-on

3x to 6x

$1M to $3M EBITDA small to mid-sized residential painter

Regional platform

5x to 7x and above

$3M to $5M EBITDA commercial or HOA-focused platform

National platform

up to 11x

large scaled specialty-construction platform

External source Multiples: CT Acquisitions, Painting Business Valuation Guide (2026); First Page Sage, EBITDA and Valuation Multiples for Construction Companies (2024); Peak Business Valuation, Valuation Multiples for a Painting Business (2025). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Whether crews are employees and whether estimating is systematized. A painting book that runs on subcontracted crews and hand-priced bids has almost nothing a buyer can scale, which caps it at the tuck-in band.

How a buyer tests it in diligence

  • Worker classification. Subcontracted crews create reclassification exposure that a buyer will either indemnify against or price into the multiple.
  • Estimating accuracy: bid hours versus actual hours by job type, which is the fastest read on whether reported margin is real.
  • Commercial and HOA agreement schedule, with term, renewal history, and margin per agreement.

Who is buying

Between roughly 75% and 88% of painting contractors are small independent shops. Sponsors, search funds, and home-services holding companies target the ones with commercial or HOA recurring agreements, a W-2 workforce rather than subcontracted crews, and digital estimating already in place.

Named platforms and deals: Hidden Harbor Capital Partners, through R.L. James Exteriors, acquiring Paramount Painting & Services (February 2026); Avalt and VantEdge Partners, through Wall Works Holdings, acquiring CID Construction and Optimum Building Systems (November 2025); Platt Park Capital Partners and Source Capital acquiring Pilot Painting; FirstService (CertaPro) and Neighborly (Five Star Painting, KKR) as franchisor-platform consolidators.

Operating benchmarks for painting and wall finishes

Painting and wall finishes operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (Painting)28% median, 38% top quartile, 20% bottom quartile, scope: blendedRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band60 days median, 42 days top quartile, 85 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: CT Acquisitions, What Private Equity Actually Buys in Painting (2026); Peak Business Valuation, Valuation Multiples for a Painting Business (2025); HedgeStone Business Advisors, Painting Business EBITDA Multiple (2025)

Concrete and masonry

Tuck-in add-on

3.1x to 4x

$1M to $3M EBITDA small localized contractor

Regional platform

6.5x to 8x

$5M+ EBITDA middle-market platform or scaled add-on

National platform

not separately reported

no distinct national-platform band published for this trade

External source Multiples: Peak Business Valuation, market multiples for concrete contractors and masonry businesses; Builder Muse, Construction M&A and PE Roll-ups (2026). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

The lowest tuck-in band on this page, roughly 3x, and the reason is that the work is bid, one-time, and weather-exposed. The trades that break out of it are the repair and restoration niches, where the same crew skill produces repeat and warranty-backed revenue.

How a buyer tests it in diligence

  • Bid-to-actual cost variance by job. In a 3x trade there is no room for a costing error, so a buyer verifies the margin job by job.
  • Retainage and lien position across open contracts, because a large share of the balance sheet is money already earned and not yet released.
  • Equipment condition and replacement schedule. Deferred capital expenditure is an adjustment to EBITDA, not a saving.

Who is buying

Thousands of local family-owned and founder-owned contractors across residential, commercial, and municipal work. Sponsors build regional density and then extend into adjacent services with better recurring characteristics: foundation repair, concrete lifting, waterproofing, and facade restoration.

Named platforms and deals: Maddix Capital acquiring a 51% controlling stake in AK Masonry (2023); Pave America, built by Shoreline Equity Partners and Trivest Partners from concrete and asphalt contractors including Finley Asphalt & Concrete, Chamberlain Contractors, and Turner Asphalt; Groundworks (KKR and Cortec Group) rolling up foundation, concrete-lifting, and waterproofing contractors; US Masonry & Building Products (Kinderhook Industries) acquiring York Flashings (2026); Valcourt Group (Littlejohn & Co.) in masonry restoration and facade repair.

Operating benchmarks for concrete and masonry

Concrete and masonry operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (Concrete / foundation)22% median, 30% top quartile, 14% bottom quartile, scope: blended, bid workRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band70 days median, 45 days top quartile, 100 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: Peak Business Valuation, concrete and masonry market multiples; Builder Muse, Construction M&A Hit $28 Billion, PE Roll-ups and Valuations (2026)

Glass and glazing

Tuck-in add-on

2.9x to 4.2x

small local glass and glazing shop

Regional platform

5.7x to 7.1x

$10M to $100M total enterprise value specialty trade contractor

GF Data reports NAICS 238 specialty-trade cohort averages of 5.7x at $10M to $25M enterprise value, 6.1x at $25M to $50M, and 7.1x at $50M to $100M.

National platform

9x to 10.9x

platform-scale building products or contract glazing company

External source Multiples: Peak Business Valuation (2025) for small glass and glazing contractors; GF Data (2026) NAICS 238 specialty-trade cohorts; Brown Gibbons Lang & Co. with Glass Magazine and PCE Investment Bankers for platform-level building products. Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Fabrication capability and contract-glazing backlog quality. This is a project trade with long lead times, so the buyer underwrites the schedule and the work-in-progress accuracy before anything else.

How a buyer tests it in diligence

  • Work-in-progress and percentage-of-completion accuracy on open glazing contracts. This is the number most often wrong in this trade and it moves reported profit directly.
  • Retainage aging and the closeout process on completed contracts.
  • Material price exposure and whether contracts carry escalation clauses on aluminum and glass.

Who is buying

Consolidation runs on both sides of the trade, glass fabrication and contract glazing installation. Buyers are after geographic reach, purchasing power on raw material, and automation in fabrication.

Named platforms and deals: Transom Capital Group acquiring Binswanger Glass (2025); The Sterling Group forming American Glass Services through Omni Glass & Paint (2025); Trulite Glass & Aluminum Solutions (Sun Capital) acquiring Insulite Glass and American Insulated Glass; Oldcastle BuildingEnvelope acquiring Midwest Glass Fabricators and Syracuse Glass; Saothair Capital Partners acquiring Pioneer Window (2024); Stellex Capital Management acquiring Custom Glass Solutions.

Operating benchmarks for glass and glazing

Level does not publish a glass and glazing DSO or gross-margin band. Use the all-contractor net-profit anchor below and the cross-trade operating metrics, and note that contract glazing collects on commercial-project terms, so it runs closer to the mechanical and general-contractor cycles than to a residential service book.

Glass and glazing operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Specialty-trade cohort multiple by enterprise value5.7x at $10M to $25M, 6.1x at $25M to $50M, 7.1x at $50M to $100MAverage EV/EBITDA for the NAICS 238 specialty-trade contractor cohort by total enterprise value bracket. The clearest published read on what scale alone is worth in a project trade.External sourceGF Data (2026), NAICS 238 specialty-trade contractor cohorts verify
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: Peak Business Valuation, glass and glazing contractor multiples (2025); GF Data, NAICS 238 specialty-trade contractor cohorts (2026); Brown Gibbons Lang & Co. with Glass Magazine, Consolidation Has Reshaped the Glass Supply Chain

Doors and access systems

Tuck-in add-on

3.5x to 5x

under $1M EBITDA local add-on

Regional platform

6.5x to 12x

$1M to $3M EBITDA core mid-market add-on at 6.5x to 9x; $3M to $10M regional platform at 9x to 12x

National platform

12x to 16x and above

above $10M EBITDA or $50M+ revenue scaled platform

External source Multiples: PitchBook, PE hopes garage door roll-ups will be the new HVAC (April 2026); FMI, Private Equity Sector Brief: Overhead and Garage Doors (March 2026); CT Acquisitions, Garage Door PE Roll-Up and M&A Report (2026). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Service and repair mix versus new-construction install, plus commercial dock and door service agreements. The trade's multiple range is unusually wide, roughly 3.5x to 16x, because the same product sold as an install is a one-time sale and sold as a service contract is an annuity.

How a buyer tests it in diligence

  • Service revenue as a share of total, with repeat-customer history rather than a revenue-category label.
  • Commercial dock and door maintenance agreements: count, term, and margin after travel time is costed.
  • Parts inventory accuracy and margin. Inventory shrink and mispriced parts quietly distort reported gross margin in this trade.

Who is buying

Over 15,000 independent operators, roughly 90% of them under $10M in revenue. More than ten private-equity platforms have formed since 2022, running 25 to 30 or more add-ons a year. Buyers are running the HVAC playbook on a trade with the same repair-and-replace demand profile.

Named platforms and deals: Guild Garage Group (Oak Hill Capital, March 2026, over $800M at about 16x EBITDA on $300M+ revenue after 25+ add-ons); GarageCo Holdings (Gridiron Capital, 2024, acquiring P.D.Q. Door, Apple Door Systems, and Cunningham Window & Door); US Dock & Door (Soundcore Capital Partners); DuraServ (Leonard Green & Partners, at a high-teens multiple); A1 Garage Door Service (Cortec Group); Door Pros America (Rotunda Capital Partners); Precision Door Service (Neighborly, KKR).

Operating benchmarks for doors and access systems

Level does not publish a doors and access DSO or gross-margin band. Residential service work in this trade collects on residential service terms, faster than any project trade, while the commercial dock and door side collects on commercial terms. Use the cross-trade operating metrics below and the all-contractor net anchor.

Doors and access systems operating benchmarks with provenance
MetricValueDefinitionProvenance & source
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: CT Acquisitions, Garage Door PE Roll-Up and M&A Report (2026); Window & Door with Brown Gibbons Lang & Co., M&A Boom: Fenestration Heats Up (2024)

Low-voltage and commercial security

Tuck-in add-on

3x to 5x

under $3M revenue project-heavy cabling or installation shop

Regional platform

5x to 12x and above

$5M to $20M revenue with 40%+ recurring monitoring and service revenue at 5x to 9x; $20M+ revenue multi-state at 8x to 12x and above

National platform

13x to 20x

scaled, highly consolidated national integrator platform

Security monitoring monthly recurring revenue trades separately at 30x to 50x RMR.

External source Multiples: Capstone Partners, Security Solutions M&A Update (2024 to 2026); PE Hub, PE-backed fire safety platforms ignite strong valuations (2025); CT Acquisitions, Low-Voltage M&A: Platforms, Multiples, and Consolidation (2026); Security Sales & Integration (2026). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Recurring monitoring revenue, priced as a separate asset. This is the one trade on the page where a buyer will value part of the business on a revenue multiple rather than an earnings multiple, because monitoring contracts behave like a subscription book.

How a buyer tests it in diligence

  • Monthly recurring revenue schedule: contract by contract, with attrition rate, remaining term, and gross margin per account.
  • Project versus recurring revenue split, and whether shared technicians and overhead are allocated between them honestly. Mixing the two is how a project shop gets mistaken for a recurring one.
  • Inspection and testing backlog against code-mandated frequency, which is the proof that the recurring revenue is contractual rather than habitual.

Who is buying

Capstone Partners counted 242 sector transactions in 2025, up 24.1% year over year, with private-equity add-ons at 45.9% of all deals and new platform investments up 33.3%. No contractor holds more than 5% share at the installation level, and code-mandated inspection and testing produces revenue that does not depend on a customer's discretionary budget.

Named platforms and deals: Pye-Barker Fire & Safety (Altas Partners and Leonard Green & Partners, with ADIA and GIC as minority investors, 41 companies acquired in 2025 alone); Pavion (Wind Point Partners, 70+ US locations); Everon, formerly ADT Commercial (GTCR); Sciens Building Solutions (Carlyle); Summit Companies (BDT & MSD Partners); Marmic Fire & Safety (KKR from HGGC, roughly $1B); APi Group (NYSE: APG) acquiring Chubb Fire & Security for $3.1B.

Operating benchmarks for low-voltage and commercial security

Low-voltage and commercial security operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Days sales outstanding, directional band68 days median, 45 days top quartile, 95 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).Directional band shown is the low-voltage and solar grouping used by Level's DSO calculator, which spans project-weighted work.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: Capstone Partners, Security Solutions M&A Update; PE Hub, PE-backed fire safety platforms ignite strong valuations (2025); Security Sales & Integration, M&A in fire and life safety (2026)

Fire and life safety

Tuck-in add-on

4x to 6.5x

$500K to $1M EBITDA bolt-on or project-heavy contractor

Regional platform

6x to 9x

middle-market operator with 40%+ of revenue from inspection and monitoring

National platform

10x to 20x

$10M+ EBITDA scaled platform at 10x to 12x; national platform buyouts and exits at 17x to 20x

External source Multiples: PE Hub (2025); Breakwater M&A, 2026 Valuation Multiples for Fire Alarm and Life Safety Companies; CT Acquisitions, Private Equity Fire & Life Safety 2026 Consolidation Report. Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

The share of revenue that is code-mandated recurring inspection and monitoring. The band from 4x to 20x is essentially a straight line in that one variable, which is why the tier note for the middle band names 40% recurring as the threshold.

How a buyer tests it in diligence

  • Inspection contract schedule tied to code frequency, with device counts per site and renewal history.
  • Deficiency-to-repair conversion rate. An inspection book that finds deficiencies and does not convert them into repair work is leaving the margin a buyer is paying for.
  • Technician licensing and certification coverage by jurisdiction, because the recurring revenue is only transferable if the credentials are.

Who is buying

Roughly 125 transactions in 2025, up about 67% year over year, with the top operators holding only about 20% of the market. The demand is code-mandated: inspection, testing, and monitoring happen on a legal schedule rather than on a budget cycle.

Named platforms and deals: Pye-Barker Fire & Safety (Altas Partners and Leonard Green & Partners, 57 acquisitions in 2025 and over 220 since 2019); Summit Companies (BDT & MSD Partners, 2025, from BlackRock Long Term Private Capital); APi Group (NYSE: APG) acquiring Chubb Fire & Security for $3.1B in 2022; Encore Fire Protection (Permira, 2025, roughly $1.8B); AI Fire (Blackstone, 2025, roughly $1.1B); Marmic Fire & Safety (KKR, roughly $1B); CertaSite (The Riverside Company).

Operating benchmarks for fire and life safety

Fire and life safety operating benchmarks with provenance
MetricValueDefinitionProvenance & source
Gross margin, directional band (Fire / sprinkler / life safety)28% median, 36% top quartile, 20% bottom quartile, scope: blended install and inspectionRevenue minus direct cost (labor, materials, subcontractors, direct equipment) as a share of revenue. Excludes overhead.DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level margin calculator uses.
Days sales outstanding, directional band64 days median, 42 days top quartile, 92 days bottom quartileAccounts receivable divided by annual revenue, times 365, for the trade as a whole (service plus project work at private-contractor scale).DirectionalLevel operator observation, directional. Not a measured distribution, so no sample size is claimed. Same values the Level DSO calculator uses.
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: Breakwater M&A, 2026 Valuation Multiples for Fire Alarm and Life Safety Companies; PE Hub, PE-backed fire safety platforms have ignited strong valuations (2025); Security Sales & Integration, What is happening with M&A in fire and life safety (2026)

Restoration and remediation

Tuck-in add-on

4x to 6x

small residential-focused or single-territory operator

Regional platform

5x to 7x

mid-sized regional business with steady carrier or third-party-administrator program revenue

National platform

7x to 11x and above

scaled multi-state platform with commercial accounts and recurring service contracts

External source Multiples: CT Acquisitions M&A Guide (2026); Capstone Partners Industrial & Environmental Services M&A Update (2025); Hyde Park Capital Disaster Restoration Report (2023). Verify. Stated as EV/EBITDA unless the source says otherwise.

What moves the multiple

Carrier and third-party-administrator program depth, balanced against how concentrated those relationships are. Program revenue is what gets a restoration company past the tuck-in band, and it is also the concentration risk that caps the multiple if one carrier is most of the book.

How a buyer tests it in diligence

  • Revenue by carrier and by third-party administrator, because program concentration in this trade routinely exceeds the 31.0% cross-trade median for a largest customer.
  • Aged receivables by claim status. Restoration receivables sit behind adjuster approval, so the aging tells the buyer how much of reported revenue is genuinely collectible.
  • Catastrophe-year normalization: a storm or wildfire year restated to trend, with the incremental subcontract and travel cost that came with it.

Who is buying

Roughly 15,000 independent operators, with the top five national brands under 20% of share combined. Sponsors have funded more than 50 distinct restoration platforms since 2018, drawn by non-discretionary demand, rising severe-weather frequency, and carrier and third-party-administrator relationships that are difficult to replicate.

Named platforms and deals: ATI Restoration (TSG Consumer Partners, 15+ regional operators between 2020 and 2024); BluSky Restoration Contractors (Partners Group and Kohlberg & Company); HighGround Restoration Group (Trivest Partners, 14+ add-ons); Blackmon Mooring and BMS CAT (AEA Investors, 11+ add-ons since 2020); Cotton Commercial USA (Sun Capital Partners); Guardian Restoration Partners (Alpine Investors, 2024); FirstOnSite under FirstService (NASDAQ: FSV).

Operating benchmarks for restoration and remediation

Level does not publish a restoration DSO or gross-margin band. Restoration collections run behind insurance adjustment rather than on standard trade terms, so neither a residential service band nor a commercial project band describes them well. Use the aged-receivable-by-claim-status test above and the cross-trade operating metrics below.

Restoration and remediation operating benchmarks with provenance
MetricValueDefinitionProvenance & source
All-contractor net profit before tax6.3% median, top quartile about 11.9%Net profit before tax as a share of revenue across all construction and specialty-trade respondents. The profitability floor a buyer starts from before any trade adjustment.External sourceCFMA 2024 Construction Financial Benchmarker (n=1,290) verify

Sources: Hyde Park Capital, Disaster Restoration M&A Industry Report (2023); CT Acquisitions, Sell Your Restoration Business in 2026: Multiples, Named Buyers; PE Hub, Private equity sees opportunities in restoration services (2024)

Methodology

How we measured, and what we did not measure

Level measured none of the multiples on this page and all five of the cross-trade operating metrics. Everything else is either a named external source with a link or a labeled directional operator band.

Level does not measure multiples

Not one multiple on this page is ours. Each range is compiled from named M&A advisory reports, transaction databases, and valuation firms, and each carries a link so you can check it. Advisor-reported ranges lag the market by a quarter or more, and individual deals fall outside them in both directions.

What is ours, and with what sample

The five cross-trade operating metrics are the founding team's analysis of 2,200+ contractors representing $13.25B in job revenue, built across operating, private-equity, and CFO roles. Each carries its own sample size. Figures are aggregated and anonymized, and no individual company is identified or identifiable.

Directional means directional

The per-trade gross-margin and DSO bands are operator observations, not a measured survey, so they claim no sample size and are badged directional everywhere they appear. They are the same values our public calculators use, so one metric carries one value across the site.

No per-trade split of our own data

Level measured a blended pool across HVAC, plumbing, electrical, mechanical, refrigeration, and fire protection. We do not publish a per-trade split of it, so where a trade has no Level band the table says so instead of borrowing a neighboring trade's number.

Reconciling two true numbers

Two DSO figures for the same trade are both true at different scopes. The directional bands below are blended service plus project work at private-contractor scale. The much longer cycles published on the trade benchmark pages (commercial mechanical roughly 90 to 105 days, mechanical roughly 90 to 118 days, computed from SEC filings) are large public commercial contractors, where retainage and progress billing dominate. A residential service book collects far faster than either. Compare yourself to the scope that matches your work mix.

Open and machine-readable

Every row above ships as JSON with its definition, provenance, source, and link at valuation-multiples.json, free to cite with attribution to Level. The Level-measured values are read from contractor.json at build time, so the two datasets cannot drift apart.

So what should I do about it, and when?

Start with whichever of the four numbers you would least want a buyer to rebuild. That is not a sales answer, it is the sequence, because a buyer who cannot verify a number does not walk away, they discount it, stretch the timeline, and shift more of the price into an earnout that depends on the number they could not check.

The fix is not exotic: attach actual cost to every job, reconcile the field system to the ledger monthly, track retainage by contract, keep a revenue-by-customer schedule, and compute margin per service agreement after fully burdened labor. It takes quarters, not weeks, which is why it belongs well before a sale process rather than during one. Level does that work as a service, on the systems you already run, and it starts by looking at one number.

Get a free data-layer audit

What number do you trust least right now?

A buyer is going to rebuild that number from your own records. Send us the one you trust least, whether it is job margin, recurring-agreement profitability, aged receivables, or revenue by customer, and Level will show you what a buyer would find and what it would take to make the number defensible. Your numbers stay yours, we never publish or share client data.

In the free audit, we check:

  • whether job cost actually ties from your field system to your general ledger
  • which recurring agreements still hold margin after labor is fully burdened
  • where your working capital and concentration sit against the peer range

We use this to prepare your audit before the call. Your numbers stay private.

Frequently Asked Questions

What EBITDA multiple can a contracting business sell for?

It depends far more on scale bracket and revenue mix than on trade. Across the 13 trades on this page, small tuck-in acquisitions under about $1M to $3M of EBITDA are reported at roughly 2.9x to 8x, regional platforms at roughly 4x to 12x, and scaled national platforms at roughly 7x to 20x, with fire and life safety, low-voltage security, doors and access, and HVAC reaching the top of that range because code-mandated or agreement-based revenue recurs. Concrete and masonry and glass and glazing sit at the bottom, near 3x for a small shop, because the work is bid and one-time. Every one of these ranges is externally sourced and linked in the table above. Level does not measure transaction multiples.

Why is the same trade quoted at 4x in one place and 18x in another?

Because the two numbers describe different companies. A 4x quote is a tuck-in add-on: one or two million dollars of EBITDA, one geography, owner-dependent, mostly project revenue. An 18x quote is a national platform recapitalization: a hundred million or more of revenue, multi-state, professional management, and a large share of revenue under recurring agreements. The multiple is not really a price for the trade, it is a price for the scale bracket and the durability of the earnings. Reading a headline multiple without the EBITDA bracket attached is the most common way owners end up disappointed at a first meeting. Note that a third figure exists and is also true: public MEP contractors have traded in the 15x to 34x range on the stock market, which is a liquid minority stake in an audited public company, not a price anyone will pay for a private book.

Which numbers actually move my multiple?

Four, in the order a buyer tests them. First, recurring revenue share and whether that recurring revenue is profitable after fully burdened labor. Second, whether job-level margin can be rebuilt from your own records, because a quality-of-earnings provider will rebuild it and will do so conservatively if job cost is not attached to job revenue. Third, working capital, since a buyer funds the receivable peg at close, so uncollected billing comes off the price. Fourth, customer concentration. None of these four require a broker to change. All four require your numbers to be right, which is where most of the gap actually sits.

How will a buyer test my numbers in diligence?

By rebuilding them from source records rather than accepting your reports. Expect a quality-of-earnings process that ties revenue to invoices and cost to job records, a working-capital analysis on aged receivables and retainage, a revenue-by-customer schedule for three years, and for any recurring revenue claim, a contract-by-contract schedule with term, renewal history, and margin per contract. The failure mode is almost never fraud. It is that the operating system and the general ledger disagree, so the buyer cannot verify the margin, and an unverifiable number gets valued as though it were the low end of its plausible range.

Does clean bookkeeping actually change the price, or just the process?

It changes both, and the process effect is usually larger than owners expect. A buyer who cannot reconcile job cost to the general ledger does not walk away, they discount, extend the timeline, and shift more of the price into an earnout that depends on the numbers they could not verify. The work to fix it is not exotic: attach actual cost to every job, reconcile the field system to the ledger every month, track retainage by contract, and keep a revenue-by-customer schedule. That work takes quarters, not weeks, which is why it belongs well before a sale process rather than during one.

Simple pricing

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Bookkeeping

The clean data layer: monthly books, reconciliations, and organized financials AI can work with.

$1,500-$5,000/mo

Scale

The full AI operating layer: custom agents, weekly actions, and benchmarks to grow margin per hour.

Custom

Platform / Multi-Office

Multi-branch benchmarking and scorecards for PE-backed and multi-location groups.

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Before a buyer rebuilds your numbers, find out what they would find. We will check whether job cost ties to your ledger, which recurring agreements actually hold margin, and where your working capital and customer concentration sit against the peer range. Free audit included.

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