A huge opportunity to sell

If you own a trade business — like landscaping, roofing, plumbing, electrical, or HVAC — you might not realize just how valuable it is in today’s market. Even if you’re a small operation, buyers are paying attention. One big reason? More and more companies are looking to buy smaller businesses and add them to the ones they already own.

This is called a roll-up or an add-on acquisition, and activity in this area is expected to grow in 2025.

What’s a Roll-Up or Add-On?

Some buyers don’t want to build a business from scratch. Instead, they buy businesses that already exist and are working well — like yours — and combine them into one larger company.

A platform deal happens when a private equity firm enters a new industry (or vertical market) for the first time. Platform companies are typically larger and have strong internal systems in place — usually generating $20–100 million in revenue and $3–20 million in EBITDA.

An add-on deal is when that same buyer — already owning a platform company — purchases a smaller business and adds it to the platform to expand its reach, services, or geographic footprint.

Right now, buyers are pulling back from launching new platform deals and instead are focused on simpler add-on acquisitions. Trade businesses are a great fit for this because they’re usually:

• Local or regional
• Easy to integrate into a larger system
• Built on strong customer relationships

Why This Is Good News for You

Even if you’re a small or mid-sized trade company, you might be exactly what buyers are looking for. They’re not always chasing big operations — they’re looking for the right fit.

Here’s what those buyers want:

• A solid customer base
• A strong local reputation
• A trained team with systems that work
• Room to grow with some added support

In fact, many buyers are looking to build regional or national footprints by acquiring several similar companies. If your business checks those boxes, you might already be part of someone’s long-term plan — you just haven’t been approached yet.

You Don’t Have to Be a Big Company to Sell

One of the biggest myths in selling a business is that you need to be large to attract attention. The truth is, buyers often prefer smaller businesses they can plug into a larger system without too much complexity.

Some buyers may even want you to stay on during the transition, either in a limited leadership role or as a short-term advisor. Others may offer a full buyout. The choice can be yours, depending on the deal.

Is Your Business a Good Fit?

Here are a few signs that your business might be a strong candidate for an add-on acquisition:

• You’re well-known and trusted in your local market
• You’ve been operating for several years
• You have a steady flow of work and returning customers
• You’re feeling ready to step back, retire, or reduce your day-to-day involvement
• You want to see your business continue to grow, even if you’re not the one leading it

If this sounds familiar, now may be a good time to find out what your business is worth.

Time to Explore Your Options?

Roll-up and add-on activity is expected to rebound this year. That means trade business owners like you are in demand.

Consolidation is already happening across many verticals. What used to be a local business category is now part of multi-billion dollar national companies operating behind local brand names. When this shift comes to your industry, you often have three choices:

• Do nothing and risk falling behind
• Find out what your business is worth and explore your options
• Grow big enough to launch your own roll-up strategy

You don’t need to make a decision today. But having a conversation now can help you understand your options and prepare for the future — whether that means selling, scaling, or staying put with a clear plan.

Let’s Talk