So You Wanna Sell Your Service Business, Huh?
I remember the exact moment it hit me. I was knee-deep in a pile of invoices, one AirPod in, listening to a podcast on passive income (because, you know, buzzwords), and it just… clicked.
“I think I’m done.”
Not in a dramatic, throw-the-laptop-out-the-window kind of way. More like a quiet realization, the kind that hums in your gut for weeks before you say it out loud. After 11 years of running my service-based business—custom home repairs, local, mostly word-of-mouth—I’d reached a point where passion had slowly been replaced by scheduling nightmares, client churn, and, let’s be honest, the aching knees of a 40-something with too much drywall dust in his lungs.
But deciding to sell? That was the easy part. Figuring out how to sell a service-based business without going broke, losing my sanity, or embarrassing myself in front of a buyer? That was a whole different can of worms.
So, let me walk you through the wild, often awkward, and totally doable process of selling a service-based business—without any of the corporate fluff or MBA jargon. It all started with me researching brokers on the site A Z Business Finder.
First Things First: You Are the Business (And That’s a Problem)
If you’re in the service game—plumbing, consulting, digital marketing, coaching, whatever—there’s a good chance you are the face, the brand, the machine, and the mechanic.
This was my first gut punch.
One broker I spoke to said, “If you disappear tomorrow, does your business still run?”
…I actually laughed. Because the answer was a hard nope.
Your job before even thinking of selling? Make yourself obsolete. I know—sounds counterintuitive. But buyers don’t want your 80-hour workweeks or your late-night client calls. They want a system, a process, a Facebook page, a business that makes money without you being glued to it.
Here’s what I did:
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Documented everything. Every client process, tool, password, and “unwritten rule” got put into a simple operations manual (read: Google Doc with emojis).
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Delegated more. Started outsourcing what I could. Found a solid project manager (shoutout to Kendra!) who basically took the reins.
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Branded beyond myself. We revamped the website, removed my mug from the homepage, and made the business sound like a team, not a solo act.
It wasn’t perfect, but it made a huge difference. Buyers want businesses, not burnout.
Valuing the Invisible: How Much Is This Thing Even Worth?
Okay, real talk: service-based businesses are notoriously tricky to value. You don’t have inventory sitting in a warehouse. You don’t own real estate. And sometimes your biggest asset—your reputation—isn’t even on the books.
So how do you figure out what your biz is worth?
I went to three different brokers and got three wildly different valuations. One guy looked at our EBITDA like he was decoding the Da Vinci code. Another tried to lowball me with a gut-based “what feels right” price.
In the end, I learned a few important lessons:
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Recurring revenue rules. If you’ve got clients on retainers or long-term contracts, that adds serious value. My handyman service had a few property management firms on monthly maintenance plans—those were gold.
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Clean books matter. If your QuickBooks looks like a toddler’s art project (mine did), clean it up. Hire a CPA. Get those P&Ls tidy.
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Add-backs are your friend. Don’t forget to adjust for “owner perks” like your truck lease, cell phone, or that “business” trip to Vegas (you know the one).
Eventually, we landed on a price that felt fair—around 2.5x SDE (seller’s discretionary earnings). Not a home run, but a respectable double down the line.
The Emotional Rollercoaster No One Warns You About
Here’s a part no one really talks about: selling a business kinda messes with your head.
One week I was psyched—dreaming of travel, maybe writing a book (LOL). The next week I was panicked. What if no one buys? What if I sell too cheap? What if I actually miss this crazy circus?
Turns out, that’s all normal. You’re not just selling spreadsheets—you’re selling a piece of your life.
I got through it by:
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Having honest talks with my spouse. We both needed to be on the same page (and budget) about what post-sale life would look like.
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Getting support. Not just a broker, but a coach, too. Someone to keep me grounded when the panic set in.
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Celebrating small wins. Like when I got my first serious inquiry or when the broker said, “You’re ready.” I cracked a beer and toasted the moment.
Finding the Right Buyer (Hint: It’s Not Always Who You Think)
I thought the buyer would be a younger version of me. Someone scrappy and hungry. Turns out, it was a retired engineer with deep pockets and no desire to ever fix a garbage disposal himself.
Lesson learned: don’t limit your imagination when it comes to buyers.
I had tire-kickers, weirdos (one guy wanted to rebrand the business as a kombucha bar?), and a few solid leads. The buyer I ended up selling to loved the systems I had in place, the team I’d built, and the recurring income. He didn’t care about tools or trucks—he wanted lifestyle income with minimal headaches.
Moral of the story: Be open. Be honest. And vet like your future depends on it—because it kinda does.
The Hand-Off and What Comes Next
The transition period was…weird. You’re still “in” the business, but not really. Like that weird summer between high school and college.
I trained the new owner for 90 days, helped smooth out client intros, and handed over passwords like I was passing the crown jewels. There were bumps, sure, but it went better than I expected.
And then, one day, I wasn’t an owner anymore.
It was oddly peaceful. No more middle-of-the-night texts. No more chasing invoices. Just… space.
So what did I do next?
Well, I took a few months off. Bought a used camper. Learned how to fly fish (badly). Took naps. Ate ice cream at 2pm just because.
But more than anything—I breathed again.
Final Thoughts: Would I Do It Again?
Honestly? Yes. A thousand times yes.
Selling a service-based business isn’t just a financial decision—it’s emotional, logistical, sometimes spiritual. But if you do it right—with prep, patience, and maybe a little humor—it can be one of the best moves of your life.
If you’re on the fence, start the process. Even if you don’t sell for another year or two, the prep alone makes your business better. Stronger. More sustainable.
And who knows? You might just find yourself cracking open a cold one, celebrating the end of an era—and the start of a new one.
Cheers to that.
Key Takeaways:
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Make yourself replaceable before trying to sell.
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Clean books, recurring revenue, and documentation = higher value.
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Don’t rush. Vet buyers and trust your gut.
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Selling is an emotional journey. Embrace it.
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Life after business can be pretty damn sweet.
Got questions about selling your own service business? Drop ‘em in the comments—happy to share the unfiltered truth, missteps and all.