The Secret to Buying a Home Service Biz in 2025

Welcome to the JackQuisitions newsletter,

Do you know what it REALLY takes to buy a local service business in 2025?

I’m not talking about the basics. I’m talking about the nuts and bolts that draw the line between success and failure.

I’m gonna let you in on some secrets below, but before that you should read this newsletter about a broken deal and watch this podcast episode about acquiring with an SBA loan.

And now, an insider tip on how to find high-quality deals before they go public. 👇️ 

Beat the Competition to the Punch

Want first dibs on HVAC, plumbing, and electrical businesses before anyone else?

Join the Business Modification Group buyer list.

Rather than fight the masses for the best deals, get notified the moment a trades business hits the market.

✅ Be the first to see new deals
✅ Get a complimentary deal review
✅ Access exclusive off-market opportunities

Join the list here — before the next deal drops. It could be the difference between closing a killer deal and coming up short.

Ready For Your Next Acquisition?

Finding your next acquisition target can be just as stressful as the process itself. Let me help. Here are some listings for your review:

This $1.6M revenue HVAC business nets $1.06M—80% residential, 20% commercial, with less than 7% new construction and no refrigeration. Runs flat-rate pricing with 720 active maintenance agreements, outsourced payroll, and a CRM in place. High-margin, low-overhead operation ready for a new owner.

This $1.85M revenue HVAC business nets $219K—full-service operation established in 1992 with a loyal customer base and steady year-round demand. Runs on advanced scheduling and job management software, supported by expert digital marketing and a skilled team.

This $2.65M revenue HVAC business nets $352K—90% residential, 10% commercial, with less than 10% new construction and no refrigeration. Operates on flat-rate pricing with 300 maintenance agreements, 3,000 active customers, outsourced payroll via bookkeeper, and a CRM in place.

This $1.69M revenue plumbing and HVAC business nets $206K—serves residential and commercial clients with multiple revenue streams, strong marketing, tailored software, and operational systems in place. Founded in 2010 and built on trust, it's a stable, service-driven opportunity.

Buying in 2025: A Blueprint

Buying a business in 2025 isn’t about chasing a dream (although that can be some of it). It’s about managing risk, leading with clarity, and navigating a market where every deal has noise baked in.

Interest rates are high. Seller expectations are even higher. And the flood of first-time buyers means good deals move fast. You don’t have time to fumble through diligence or guess your way through legal. You need a plan.

Chris Barr’s under LOI on a pressure washing business that checks every box. It’s the kind of business most buyers would kill to find.

• Right location

• Right service model

• No refrigeration or equipment headaches

• A clean B2B revenue mix

But none of that matters unless he gets through diligence without stepping on a landmine.

Here’s the blueprint he’s using. If you’re serious about buying a home service business this year, this is the bar.

Build Your Team Before You Make an Offer

The biggest mistake I see first-time buyers make is trying to build the plane while it’s in the air. They wait until the LOI is signed to go looking for a lawyer or an accountant. At that point, you're already behind.

You need:

• A CPA who understands small business M&A and knows how to analyze add-backs without getting lost in theory

• A transactional attorney who’s done deals in the $500K to $5M range and won’t spend 10 billable hours on a holdback clause that doesn’t matter

• A banker who can tell you what deal size you can realistically pursue

• Someone who can help with operational diligence if you're not from the industry

Chris had a full team in place before he even made an offer. That let him move fast, lock the deal, and start pulling threads the minute the LOI was signed.

Diligence Is About Risk, Not Validation

Most buyers treat due diligence like confirmation. You fall in love with the deal, then you try to prove to yourself it’s safe.

That’s backwards.

Diligence is about identifying what could kill the deal, or kill the business once you're in it. It’s a risk-seeking process, not a reassurance exercise. You’re not trying to prove it works. You’re trying to prove it won’t.

Chris started with financials. That’s always step one. If the numbers don’t tie out, nothing else matters. He got QuickBooks access, sent it to his CPA, and let the pros start recasting earnings.

But operational diligence starts early too. Especially in 2025.

Rising costs, real estate headaches, labor constraints, and tariff pressure all show up in operations before they show up in the P&L. If the seller says their techs only cost $25/hour but they’ve lost three in the last six months, that wage isn’t real. If they say they work 10 hours a week but your supplier says they’re calling every night at 10pm, you’re being lied to.

Price Is a Tool to Manage Downside

In this market, every seller thinks their business is worth more than it is. And most brokers are happy to play along.

That’s fine. You can offer a strong headline number if the structure protects you.

Chris put together a deal with a modest payment at close and the rest tied to an earnout. The key is that he's only on the hook for the amount he can back up with tax returns and bank deposits. Anything beyond that is performance-based.

That’s how you need to think in 2025. Price is about risk. You’re not being clever. You’re being responsible.

Legal Details Still Matter—But Context Is Everything

One of the biggest advantages buyers have in 2025 is clarity. This market is mature enough that there are specialists in every category: attorneys who focus only on service businesses, CPAs who only do M&A recasting, and lenders who understand the space.

If you’re doing a stock sale, you need airtight reps and warranties. If you’re doing an asset sale, you're leaving most of the liabilities behind, but you still need to look closely. This is especially true with franchises, leases, or licensing tied to the business.

Chris found a few odd things in the legal docs. They weren’t deal breakers, but they reminded him that this isn’t a handshake transaction. Even when the seller’s friendly. Even when the deal feels perfect.

Don’t Wait to Start Acting Like the Owner

The number one way buyers blow up a good acquisition is by thinking they’ll figure it out after close.

You need to lead before the deal is even done.

Chris is already building a plan for his operations manager. He’s reviewing pay structures, contract terms, real estate details, and customer turnover. He’s not “waiting to learn the business”—he’s already operating like the owner, even if the check hasn’t cleared yet.

That’s the mindset shift you need. Especially if you plan to scale.

Buying in 2025 Means Playing Both Sides

The hardest part about buying a home service business in 2025 is that you're solving for two problems at once.

You need to get the deal done, which means being fast, flexible, and creative. But you also need to run the business once it’s yours, which means staying skeptical, asking tough questions, and protecting your downside.

That’s the tension. Speed vs. scrutiny. Risk vs. reward.

Chris is walking that tightrope right now. You will be too. And that’s okay. It’s to be expected, and preparation allows you to deal with anything that comes your way.

Final Thought

If you're buying a home service business this year, don't settle for hope.

Hope doesn’t protect your balance sheet. Hope doesn’t catch bad add-backs. Hope doesn’t keep your techs from quitting on day one.

Build the team. Lead the process. Question everything. And when the deal feels too clean, dig harder.

That’s how you buy right in 2025.

Tell Me What You’re Thinking

That’s a lot to unpack, but it’s exactly what you need to successfully acquire a home service business in 2025. Got questions? Get with me on X or LinkedIn.

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