Selling a service or trades business in the UK

Service and trades covers cleaning, gardening and grounds maintenance, building and renovation, electrical, plumbing and heating, locksmithing, pest control, vehicle services, and the long list of B2C and B2B service businesses owner-operators run from a van or small office. Most sellers in this sector have built revenue through reputation and repeat work, often without a formal sales process.

For buyers, the question is always: how much of this business comes with the trade name, the customer list, and the equipment, and how much walks out the door with the current owner? Document the answer well and the sale gets straightforward.

What buyers look for in a service or trades business

Three numbers first: revenue split between repeat / recurring customers and one-off jobs, gross margin after materials and subcontractor costs, and direct labour as a percentage of revenue. Buyers also want to know how much of the work comes from each source (Google, recommendations, Checkatrade, supplier referrals) so they can judge whether the sources transfer.

The customer book and goodwill

The single most valuable asset is often the recurring customer base. A documented client list with service frequency, contract terms (if any), and length of relationship is what buyers pay for. If you serve repeat domestic customers without contracts, write up a one-page summary of the typical service cycle (e.g. "average customer: 4 callouts per year, average revenue £180/visit") so the buyer can model it.

Regulated trades, qualifications, and accreditations

Gas Safe, NICEIC, Part P, OFTEC, F-Gas, WRAS, NPTC, BPCA: every regulated trade has accreditations that typically attach to named individuals or the firm. If accreditations attach to you personally, the buyer needs a credible plan for how they get them transferred or re-issued before completion. Same for accreditation-led marketing (Which? Trusted Trader, Checkatrade Top Trader): document what transfers and what does not.

Vehicles, tools, plant, and stock

Most service businesses come with vehicles, tools, and some level of consumable stock. Buyers want an itemised fixed asset register with age, condition, and any finance still outstanding (HP, lease purchase). Vehicle livery and branding matters too, both as an asset and as something to consider on rebrand.

Typical UK service and trades valuation multiples

Owner-operated service businesses typically trade at 1.5x to 3x adjusted SDE. Established trade firms with multiple operatives, recurring contracts, and a manager running the day-to-day push toward 3x to 4x. Specialist or regulated trade businesses with strong forward order books and a transferable brand can exceed this. The single biggest lever is owner-dependence: a business that runs without you is worth materially more than one that does not.

Preparing your service business for sale

• Three years of accounts plus a 12-month forward-looking job pipeline if you have one
• A customer list with service frequency and average revenue per customer
• Up-to-date accreditations and qualifications, with a clear plan for how they transfer
• A vehicle and tool inventory with age, condition, and any outstanding finance

A few service-and-trades-specific extras

• Reviews on Google, Trustpilot, Checkatrade are part of the asset, inventory them
• Subcontractor relationships and any reciprocal-referral arrangements need documenting
• Insurance position (public liability, professional indemnity for design work) and any open claims