AI for Trades Business Valuation and Sale
How trades businesses build value with AI infrastructure. M&A and succession considerations.
Value drivers: recurring revenue, customer retention, AI-augmented operations, documented processes, established team.
Trades businesses with strong AI infrastructure command 0.3-0.5x multiple expansion typically.
Bottom line: Build for sellability even if not selling. AI infrastructure is part of building value.
Frequently asked questions
Are trades businesses sellable?
Yes — typical multiples 2-5x SDE. Higher for businesses with recurring revenue and AI infrastructure.
How does AI affect trades business value?
Documented AI-augmented operations transfer better than owner-dependent processes. 0.3-0.5x multiple expansion typical.
What about owner-dependency?
Major value detractor. AI plus documented processes reduce owner dependency. Critical for sellability.
Should trades plan to sell?
Strategic decision. Building for sale doesn't require selling. Provides optionality and discipline.
Timeline to sellable business?
3-5 years typically. AI infrastructure accelerates path.
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