Business sales, Business Appraisals, Marketing & selling of businesses, Negotiation & Mergers, Melbourne, Australia
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Trade Services Business

These are typically trade based businesses that perform their service onsite.  These include:-

  • Electrical
  • Plumbing
  • Plasterers
  • Carpenters
  • Bricklayers
  • Builders
  • Tilers
  • Painters
  • Heating/cooling Cabinet makers including kitchen
  • Gardening/home services


The type of business is also further categorised by:-

  • Home/Domestic
  • Commercial/Residential/Offices/Warehouse

Typical buyers are:-

  • Persons with the necessary trade qualifications/licenses
  • Businesses in same industry


What is a typical trade services business worth?

Note:  The information provided is general in nature and is presented as a guide only every business has its own unique qualities.  It does not take into account the specific characteristics of a particular business and the market conditions that exist at the time of transaction.

Characteristics:

  • Nature of work is very dependent on economic and building cycles
  • Low barriers to entry
  • High risk of bad debts

For small trade services businesses, the valuation is typically less than 12 months of earnings to the “working owner”.
Typically tradespeople seeking to buy established businesses do not have the financial resources or see the need to pay for the goodwill of the business.

Larger business with an established client base and recurring service based revenue will be more commercially attractive, and tend to be valued based using the ‘ Return on Investment ’ approach.  The larger business can potentially attract a larger pool of professional buyers as well.

 
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