The 25 Factors to Value, Negotiate & Close Trades Business Exits

Hey there, sales managers of the trades world! Welcome to the Sales Managers in Trades Mastery Podcast — your one-stop audio shop for strategies, sales growth, and exits in construction, plumbing, HVAC, electrical, and manufacturing.

I’m Eric Jordan, CPPA, and in today’s special all-in-one episode, we’re diving deep into the 25 Factors Affecting Business Valuation. This isn't fluff. It's the real-deal blueprint for valuing a trades business, finding the buyer who will pay top dollar, and — here’s the kicker — splitting a 5% commission with me when we close the deal.

We’re talking serious money here. Like, $300K on a $6M exit.

But first, here’s the deal: Any seller worth their salt needs a credible valuation. That’s where we start. A small upfront fee — typically $5K to $10K — unlocks the full package: valuation, buyer targeting, and deal support. Without that, it’s just guesswork.

You’re in the perfect position. You know the business, the people, the pain points. Let me help with the valuation and methodology; you handle the negotiation. We both win.

Let’s crack into the first 5 factors:

History – Track record matters. A 20-year-old HVAC firm? Buyers love that stability.
Purpose – What’s the mission? Trades businesses with a clear purpose punch above their weight.
Financials – Clean books, consistent cash flow = serious buyer interest.
ROI – We project realistic returns to justify the price.
How it Works – Documented systems = scalability = cha-ching.

All of this? It comes from that initial valuation. For $5K, the seller gets clarity; you get a powerful pitch tool.

Next 5 are where we get sexy with the strategy:

R&D – Think IoT-enabled plumbing systems? Game-changer.
Opportunity – Green energy, new service areas – all growth levers.
Location – A trades biz in a booming market is already ahead.
Brand – Strong name? That’s worth serious dough.
Marketing – A good lead gen system is like jet fuel for value.

Sales managers, use this as your heat map. Spot these, grab the seller, and say: “Let’s do a valuation and cash out smart.”

Now to the human capital factors:

Management – Solid leadership gives buyers peace of mind.
Employees – Trained, stable staff? Major asset.
Customer Base – Repeat business means reliable revenue.
Competition – We map their edge over rivals.
Barriers to Entry – Certifications, niche knowledge, etc.

You negotiate with confidence when you can say, "These aren't just opinions. They're factors driving premium value."

These make the business irresistible:

Scalability – Replicable process? Buyers love it.
Leverage – Low debt, high output? Win.
Growth Potential – Expansion ready? Sweet spot.
Risk Mitigation – Systems to weather storms.
Intellectual Property – Even in trades, this exists.

Once again: all baked into the valuation. Pay a small fee, unlock big-time positioning.

Home stretch:

Contracts – Multi-year agreements? Add value.
Goodwill – The secret sauce: reputation.
Synergies – Strategic buyers pay more when there’s a fit.
Exit Strategy – Clean handoff? Smooth transition.
Market Conditions – 2025 boom? Strike while hot.

Let me tell you about a real client: a $6M HVAC company. We nailed factors like synergies, market growth, and brand strength. Seller paid $10K, we landed a buyer from manufacturing, and both the sales manager and I walked with $150K each.

Quick chat with a trades sales pro – maybe someone from Contractor Sales Academy. They'll share a real-world deal where negotiation + valuation = payday.

There it is. All 25 Factors. Realistic valuations. Smart targeting. And a killer partnership.

Call to Action (Repeat): If you’re a sales manager in trades and you know a business ready to sell, contact me, Eric Jordan CPPA, at pindotca@gmail.com or 877-355-8004.

Pay the small valuation fee. Get the value. Spot the buyer. Negotiate the deal. Split the commission.

It's that simple.

Until next time — go build value and close deals!