Does anyone have a good valuation model for an HVAC/Plumbing company. Particularly interested in how to treat the value of partially depreciated equipment, vans/trucks with loans against them, and real estate (warehouse/offices). First time putting together a valuation for this type of business so just trying to get some best practices in building out the valuation model. Thanks.
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+ Large share of subscription revenue (30%+)
+ Large market share (however the market is defined)
+ Demonstration of low costs of customer acquisition (i.e., lifetime value vs costs of acquisition via SEO, etc)
+ Broader portfolio of products (ability to source from multiple manufacturers)
Ascribe a discount to residential new construction-driven revenue given its cyclicality/limited potential for recurring revenue.
To Mark's point, if the assets in the business support the daily running of the business, there typically aren't adjustments made for those given those are used in the "ordinary course" of business.
If for whatever reason, the business has excess inventory (e.g., they overordered HVAC units due to COVID supply anticipated challenges) there could be a shout for allocating some value to that over and above the ongoing value of the business.