Selling Your Home Service Business? Don't Make This Mistake

Selling your business? EBITDA alone won’t get you the exit you want. In this episode, David Barnett breaks down what actually drives business valuation, exit strategy, mergers & acquisitions, and selling a home service business—and what quietly kills deals. Most operators spend years building a company, then leave real money on the table because they don’t understand what buyers are actually buying. It’s not just profit—it’s predictable cash flow, systems, margins, and a business that runs without the owner. David Barnett has helped hundreds of owners sell their companies. In this episode, he and John unpack how deals really get done—from misunderstood EBITDA multiples to the risks that derail transactions before closing. 🎯 What You’ll Learn: • Why EBITDA alone doesn’t determine your business valuation • The 2 questions every buyer asks before making an offer • How poor systems, bad margins, and owner-dependence kill deals • The difference between a distressed sale and a “built to sell” winner • What home service operators should be doing NOW to protect their exit ⏱️ Timestamps: 00:00 Distressed Sale Reality 00:50 Podcast Intro and Buyer Mindset 08:02 Multiples Myths and Value Drivers 29:41 What Buyers Really Pay For 37:49 Asset Value Reality Check 40:29 Inventory Carve Outs 43:44 Selling Under Pressure 49:49 Build To Sell Playbook 🤝 Connect with David Barnett: 👉 https://www.davidcbarnett.com/ 🤝 Connect with John: 👉 https://x.com/thewilsoncompanies 💡 Yelp — A Smarter Way to Win Leads Google costs are up. Lead quality is down. You’re paying more for less. Meanwhile, Yelp generated 125M+ home service leads last year—and powers results across ChatGPT, Google AI, Apple Maps, and Alexa. Less competition. Higher intent. 👉 Book a call: https://business.yelp.com/ownedandoperated 📞 Sponsored by Quo — The Modern Business Phone for Service Pros Missed calls mean missed business. Quo (formerly OpenPhone) is the AI-powered phone system that logs calls, creates summaries, and automates follow-ups — keeping your team connected and customers happy.? 🎁 Start your 7-day free trial and get 20% off your first six months at https://quo.com/owned 🎙️ Owned & Operated is the playbook for scaling home service businesses—HVAC, plumbing, electrical, and beyond. New episodes every week. #sellyourbusiness #businessexitstrategy #businessvaluation #builttosell #homeservicebusiness #hvacbusiness #plumbingbusiness #mergersandacquisitions #entrepreneurship #smallbusiness