What Is the Typical Equity Value of a Remodeling Business?

There are a few ways to make money in a business.

1. Earnings
2. Write-offs
3. Equity

The most overlooked and arguably one of the most valuable ways to make money in business is through building equity.

Many remodeling companies ignore what it takes to build equity and resale value as they grow their business. Instead, they focus on building earnings rather than building a brand. What is the cost of that way of thinking? Usually hundreds of thousands of dollars.

The typical resale value of a small business is 2.5 to 3 times owner earnings or perhaps more. So if your business is earning $100,000 or more, your business could be worth $250,000 or more if you were to position your business for resale. But many contractors do not think this way.

Re-Bath owners build both earnings and equity. The more money they make, the more their business is worth. And we are now experiencing record sales, and therefore record equity appreciation also.

Let’s have a conversation about how we may work together to build equity in your remodeling business. Click here to learn more.