Home Services Rollups: How to Source HVAC and Plumbing Targets at Scale

Home services rollups are the most active segment in lower middle market M&A — and the most fragmented. A regional HVAC platform in the Sun Belt might need 8–15 tuck-ins over 5 years to hit $15M revenue. Each tuck-in starts as an off-market conversation with a 55-year-old owner in a suburb you've never visited.

Tuck-in criteria that actually work

• SDE $200K–$800K (below $200K, integration cost exceeds value; above $800K, owners expect premium multiples).
• Owner willing to stay 12–24 months (technical knowledge transfer is non-negotiable in trades).
• Service radius overlaps your existing territory or fills a geographic gap.
• Customer base is residential-heavy (more stable than pure commercial for rollups).
• No environmental or licensing liabilities that survive asset purchase.

Sourcing at rollup scale

A solo buyer needs 75 targets. A rollup operator needs 500+ per metro per year as pipeline replenishes. The sourcing system must be continuous — not a one-time list purchase. Weekly refresh, monthly re-scoring, quarterly re-outreach to 'not now' owners.

Integration economics

Pay 2.5x–3.5x SDE for tuck-ins where you keep the owner 12 months. Synergies come from: shared dispatch, consolidated purchasing, unified brand, and back-office centralization. Model each tuck-in standalone first — if it doesn't work without synergies, pass.