Sunrise Plumbing & Mechanical LLC Prepared For: Prospective Acquirers | Prepared By: ClearValue Advisory · AI-Powered Business Analysis · bizvaluefree.com Date: May 2026 | CONFIDENTIAL — Distribution Strictly Limited

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1. Executive Summary ..................... 1
2. Investment Highlights ................. 2
3. Business Overview ..................... 3
4. Locations & Facilities ................ 4
5. Products / Services Detail ............ 5
6. Market & Territory Analysis ........... 6
7. Operations Overview ................... 7
8. Team / Key Personnel .................. 8
9. Financial Performance ................. 9
10. Growth Opportunities ................. 11
11. Transaction Overview ................. 12
12. Disclaimer ........................... 13

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1. Executive Summary

Sunrise Plumbing & Mechanical LLC is a 12-year-old, owner-operated plumbing and mechanical contracting business headquartered in Las Vegas, Nevada, with a secondary warehouse and back-office facility in Henderson, NV. The company provides residential plumbing service and repair under recurring service contracts, as well as light commercial mechanical installation for residential remodel projects and new-build light commercial developments. Founded in 2014 and structured as an S-Corporation under Nevada law, the business has compounded revenue at approximately 7% per year over the past three completed fiscal years, growing from $1,580,000 in 2023 to $1,800,000 in 2025 — a trajectory that reflects the sustained demand for skilled plumbing contractors across the Las Vegas–Henderson metropolitan market.

The financial profile is compelling for an acquirer. Seller's Discretionary Earnings (SDE) for 2025 — fully normalized for owner compensation, health insurance, vehicle expenses, depreciation, and one-time items — is estimated at approximately $524,000, representing an SDE margin of roughly 29% on revenue. The three-year weighted SDE, which gives the most predictive weight to recent performance, comes to approximately $510,000. With a base-case multiple of 3.2x, the business supports an enterprise valuation range of approximately $900,000 to $1,100,000 — aligned precisely with the owner's expectations. First-year cash flow after SBA debt service at a $1,000,000 purchase price is estimated at approximately $170,000, producing a debt service coverage ratio of 1.50x — comfortably above the SBA minimum of 1.25x.

The business is structured for transition. A seasoned Service Manager with eight years of tenure leads dispatch, customer relations, and service-tech scheduling. Three senior service technicians with five-plus years each anchor the field operation. The company has approximately 340 active service accounts, 88% retention year-over-year, and 60% of revenue from recurring service contracts — a rare and highly valuable characteristic in the specialty trades sector. The owner is retiring after 12 years and is prepared to deliver a six-month side-by-side transition followed by quarterly advisory check-ins for 12 months, ensuring continuity for key customer relationships and operational knowledge transfer.

The owner's stated asking price range of $900,000 to $1,100,000 is well-supported by the financial performance, the recurring revenue base, and the operational depth of the team. Sunrise Plumbing & Mechanical represents an exceptional opportunity for an owner-operator seeking an established, cash-flowing business in one of the fastest-growing metros in the United States, or for a regional mechanical contractor or PE-backed roll-up platform seeking a profitable Nevada add-on with a clean regulatory record, a loyal customer base, and documented service infrastructure.

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2. Investment Highlights

1. Consistent Revenue Growth — 14% Over Three Years. Revenue grew from $1,580,000 (2023) to $1,800,000 (2025), a compound annual growth rate of approximately 6.7%, driven by service-contract renewals and expanding light commercial install volume.

1. Strong SDE Margin of ~29%. Fully normalized 2025 SDE of approximately $524,000 on $1,800,000 revenue is above-average for a residential service plumbing contractor of this scale, reflecting disciplined cost management and a labor model anchored by long-tenured technicians.

1. 60% Recurring Revenue from Service Contracts. Approximately 340 active service accounts with 88% year-over-year retention create a predictable, annuity-like revenue base that significantly de-risks the acquisition for buyers and lenders.

1. Q1 2026 Run-Rate Supports $1.8M+ Full-Year Projection. Q1 2026 revenue of $452,000 annualizes to approximately $1,808,000 — confirming the business is pacing in line with 2025 performance and has not decelerated heading into the sale.

1. Exceptional Google Reputation — 4.7 Stars, 132 Reviews, Top-5 Organic Ranking. The business ranks organically in the top five for "Las Vegas plumber" — an earned digital asset that drives inbound inquiries at no incremental cost and would be expensive to replicate.

1. 12 Years of Operating History with No Litigation. The business has no pending lawsuits, no outstanding tax issues, no UCC filings, and no undisclosed liabilities. One resolved 2024 OSHA citation was remediated within 30 days with a certificate of compliance on file.

1. Experienced, Deep Team. 15 employees including a critical Service Manager with eight years of tenure, three senior service technicians with five-plus years each, and a stable back-office. The business does not depend on one person for field execution.

1. Henderson Real Estate Transfers with the Sale. The Henderson warehouse and back-office (1410 Boulder Hwy) is owned by the LLC and conveys with the business — adding tangible real estate value to the transaction and eliminating lease risk at the secondary location.

1. SBA 7(a) Financing Eligible. At a $1,000,000 purchase price with a 10% down payment, the deal produces a projected DSCR of approximately 1.50x — well above the SBA minimum. A qualified buyer could close with approximately $100,000 down.

1. Owner Committed to a Clean Transition. The retiring owner has committed to six months of side-by-side transition and 12 months of quarterly advisory support — an unusually generous and confidence-building handover for key customers and staff.

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3. Business Overview

Sunrise Plumbing & Mechanical LLC was founded in 2014 by its sole owner and has operated continuously for 12 years in the Las Vegas–Henderson metro. The business was built from a residential service focus and evolved over time into a dual-revenue model: recurring plumbing service contracts for homeowners and HOA-managed properties, and mechanical installation work for residential remodel contractors and light commercial new-build developers. This combination of predictable maintenance revenue and higher-margin project work is one of the most defensible business models in the specialty trades sector, and it is the foundation of Sunrise's consistent earnings growth.

The company holds all required Nevada Contractors Board licenses for plumbing and mechanical contracting and operates in full compliance with Nevada state licensing requirements. The 2024 OSHA citation related to ladder safety on a two-story residential install was remediated within 30 days, and a certificate of compliance is on file — a non-recurring event with no ongoing regulatory exposure.

The business serves two primary customer segments: residential homeowners and HOA-managed communities in the Las Vegas valley, and light commercial developers and general contractors undertaking new-build and remodel projects. The HOA segment is particularly valuable — long-term service agreements with HOA management groups create multi-year revenue visibility and a high barrier to competitive displacement. The single largest customer, a Las Vegas HOA management group, represents approximately 22% of annual revenue under a recurring service contract. While this concentration is a due-diligence item for buyers and lenders, it is mitigated by the long tenure of the relationship (8+ years), the involvement of the Service Manager as a secondary contact for three years, and the contractual nature of the arrangement.

The company's operational footprint spans two locations. The primary service hub at 4220 W Sahara Ave, Las Vegas, NV 89102 is leased and accounts for approximately 70% of total revenue. The Henderson facility at 1410 Boulder Hwy, Henderson, NV 89015 is owned by the LLC, serves as a warehouse and back-office, and accounts for approximately 30% of total revenue. Both locations operate as a single integrated business, and the owner intends to sell them together as one going concern.

Locations & Facilities

Multi-Location Revenue Distribution

Any lease expiring within 24 months will be flagged for buyer due diligence. The Las Vegas primary service hub lease expires November 2027 — within the 24-month window — and buyers will require lease assignment or new-lease negotiation as a condition of sale. No sublease or different-entity lease issues apply; the LLC is the primary leaseholder on all leased locations.

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4. Products / Services Detail

Recurring Plumbing Service Contracts (60% of Revenue — ~$1,080,000 in 2025) The core of Sunrise's business model is its recurring service contract portfolio. The company maintains approximately 340 active service accounts, the majority of which are homeowners and HOA-managed communities across the Las Vegas valley. Service contracts cover scheduled preventative maintenance (water heater inspections, pressure testing, fixture maintenance), priority emergency dispatch, and discounted labor rates on repair work. The 88% year-over-year retention rate on this book is exceptional — industry average retention for residential service contracts in the plumbing sector runs 70%–80%. The HOA management segment within this category is anchored by a single large contract representing approximately 22% of total annual revenue and generating multi-year, predictable cash flow.

Residential Remodel & Light Commercial Install (40% of Revenue — ~$720,000 in 2025) The project installation segment encompasses full rough-in and finish plumbing for residential remodel projects and new-build light commercial construction in the Henderson and Las Vegas markets. This work is sourced through general contractor relationships and developer referrals built over 12 years of consistent delivery. Project margins are typically higher per job than service contract work, but revenue is less predictable. The mix of 60% recurring / 40% project is considered by buyers and lenders to be a healthy balance — predictable enough to underwrite, with meaningful upside from project wins.

Emergency Service & Repair (Included within service contract revenue) Sunrise maintains a rapid-response capability for emergency plumbing calls, which drives both direct revenue for non-contract customers and renewal stickiness for existing contract holders. The company's top-five Google ranking and 4.7-star rating ensure consistent inbound emergency call volume with no paid acquisition cost.

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5. Market & Territory Analysis

Market Size & Local Dynamics The Las Vegas–Henderson–Paradise Metropolitan Statistical Area (MSA) is one of the fastest-growing metro areas in the United States, with a current population of approximately 2.3 million and consistent net in-migration. Clark County issued over 14,000 residential building permits in 2024 alone, and the Henderson submarket has been among the top five fastest-growing cities in Nevada for five consecutive years. This demographic and construction tailwind directly sustains demand for plumbing contractors across both the service and install segments. The U.S. plumbing services market exceeded $130 billion in 2024 and is projected to grow at approximately 4.5% annually through 2029, driven by aging housing stock, water infrastructure investment, and commercial construction activity.

Served Geography Sunrise Plumbing & Mechanical's primary service geography covers the greater Las Vegas valley, with concentrated customer density in the zip codes surrounding the W Sahara Ave service hub (89102, 89117, 89128) and extending east into Henderson and Boulder City via the Henderson warehouse. The company does not currently serve Northern Nevada or the Reno–Sparks market, which represents a meaningful expansion opportunity for a capitalized acquirer.

Addressable Customer Base Clark County has approximately 800,000 occupied housing units, plus an estimated 45,000 light commercial properties. At a service-contract penetration rate consistent with the regional market (~8%), the total addressable service-account base in the company's served geography exceeds 65,000 accounts. Sunrise's current 340 active accounts represent less than 0.5% penetration — confirming that organic growth through targeted marketing and referral development is a substantial, near-term opportunity.

Competitive Landscape The Las Vegas plumbing contractor market is served by a mix of national franchise operators (Roto-Rooter, Benjamin Franklin Plumbing), regional multi-location contractors (Southwest Gas-affiliated services), and independent owner-operators. Sunrise's primary competitive advantages are: (1) its Google reputation (4.7 stars, 132 reviews, top-5 organic ranking), which independent operators rarely achieve and franchisees seldom outperform; (2) 12 years of established HOA relationships that are contractual and multi-year; and (3) a licensed, multi-tech team capable of handling both service and installation work that smaller operators cannot staff. The primary competitive risk is labor poaching by larger contractors and franchise brands seeking to expand their tech bases.

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6. Operations Overview

Sunrise Plumbing & Mechanical operates on a model that is more systematized than the typical independent plumbing contractor at this revenue scale, though it retains meaningful manual dependencies that a new owner will want to address. The dispatch and scheduling function runs through ServiceTitan, a field-service management platform that handles job creation, technician assignment, invoicing, and customer history. QuickBooks Online manages all accounting and payroll, and Google Workspace supports internal communication and document management.

The Service Manager (eight years of tenure) is the operational hub of the Las Vegas facility — leading daily dispatch, customer-relations follow-up, and service-tech scheduling. The owner's current role is primarily oversight, business development with the HOA accounts, and financial management. The three senior service technicians operate with a high degree of field autonomy, reducing the owner's need to be on-site for routine jobs. The two install techs handle project work under the direction of the Service Manager and the owner on larger jobs.

The primary operational bottleneck identified by the owner is scheduling — the Service Manager currently handles all dispatch and scheduling manually within ServiceTitan, without the use of AI-assisted routing or automated reminders. This creates capacity ceiling risk and a key-person dependency on the Service Manager. The company has not yet adopted any AI or automation tools, which represents both a current inefficiency and a valuation-positive improvement opportunity for a buyer.

Standard operating procedures exist in practice but are not comprehensively documented. The company's processes are embedded in ServiceTitan workflows and in the knowledge of the Service Manager and senior techs. A buyer will want to document these procedures formally as part of the transition — achievable within the planned six-month transition period.

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7. Team / Key Personnel

Sunrise Plumbing & Mechanical employs 15 people across two locations. The team is notably stable by industry standards — the Service Manager has eight years of tenure, and three senior service technicians have been with the business five-plus years each. This depth insulates the business from the technician turnover risk that plagues many independent plumbing contractors and is a significant value driver for buyers seeking operational continuity.

Family member — compensation may include add-back component. The Office Manager role carries a $58,000 annual salary against an estimated market rate of approximately $38,000, representing approximately $20,000 per year in potential above-market compensation. Buyers and their advisors should evaluate this differential as a potential SDE add-back.

The business employs 12 full-time and 3 part-time staff across 7 key functions.

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8. Financial Performance

Revenue & Profitability Summary

Detailed SDE computation in Deliverable 2. Includes owner W-2, payroll tax normalization, health insurance, vehicle expenses, depreciation, and one-time items. Family payroll add-back evaluated separately.

Revenue Analysis Revenue growth has been steady and sustainable across all three completed fiscal years. The $220,000 increase from 2023 to 2025 reflects both organic service-contract additions and growing install volume in the Henderson market. The growth rate of approximately 6.7% per year is notably in excess of the sector average of 4.5%, suggesting either above-market execution or a favorable local market dynamic — most likely both. Net income grew at a faster rate than revenue (25% over the same period), indicating improving operational leverage as fixed overhead is distributed across a growing revenue base.

Q1 2026 revenue of $452,000 represents 25.1% of 2025's full-year revenue — precisely in line with seasonal expectations for the Las Vegas plumbing market, where Q1 is typically the softest quarter due to mild weather moderating emergency call volume. The Q1 2026 annualized run-rate of approximately $1,808,000 confirms the business is sustaining its 2025 performance level and has not decelerated.

SDE Add-Back Schedule

2023/2024 D&A estimated consistent with 2025 confirmed figure. Buyer due diligence should request tax returns to validate prior years.

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9. Growth Opportunities

1. Service Contract Expansion — Highest Priority, Lowest CapEx. With only 340 active service accounts against an addressable base exceeding 65,000 households in the served geography, Sunrise's single highest-return growth opportunity is systematic service-contract acquisition. A buyer deploying a structured outbound marketing program — direct mail, Google Local Services Ads, and referral incentives for existing contract holders — could realistically add 50–80 new service accounts per year at minimal incremental cost. At an average service contract value of approximately $800–$1,200 per year, 60 new accounts adds $48,000–$72,000 in recurring annual revenue. At a 3.2x multiple, that represents $154,000–$230,000 in enterprise value creation per year of systematic contract sales effort.

2. AI-Assisted Scheduling & Dispatch — Reduces Service Manager Dependency and Unlocks Capacity. The current scheduling bottleneck is the single largest operational constraint on Sunrise's growth. The Service Manager handles all dispatch manually, which means the business cannot scale dispatch volume beyond what one person can manage, and any absence creates service delivery risk. Deploying AI-assisted scheduling within or alongside ServiceTitan — tools such as ServiceTitan's native AI dispatch optimization or a third-party overlay like Jobber's AI scheduler — can automate 60%–70% of routine dispatch decisions, recapture an estimated 10–15 hours per week of the Service Manager's time, and allow the business to handle 20%–30% more service calls with the existing team. This directly reduces key-person dependency and increases capacity without adding headcount.

3. HOA Portfolio Expansion — Geographic Replication of Existing Model. The HOA management group contract that drives 22% of annual revenue represents a proven go-to-market motion. A buyer with business development capabilities could systematically target the additional 35–40 HOA management groups active in the Clark County market. Landing even two additional HOA accounts at a scale similar to the current largest customer would add approximately $400,000 in recurring annual revenue — transforming the business from a mid-sized independent to a market-leading HOA plumbing provider. This strategy is particularly attractive to a strategic or PE-backed acquirer with existing HOA relationships in adjacent markets.

4. Henderson Market Penetration — Underleveraged Asset. The Henderson location, which currently accounts for 30% of revenue and is LLC-owned real estate, has capacity to support meaningfully more revenue than it currently generates. Henderson's housing growth rate in 2024–2025 was among the fastest in the metro, and the install segment is natural territory for a more aggressive business development effort targeting Henderson-based general contractors and developers. A focused Henderson service contract campaign mirrors the Las Vegas model and requires no additional real estate investment — the facility is already owned and operational.

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10. Transaction Overview

At a $1,000,000 purchase price with 90% SBA financing, a qualified buyer can expect first-year cash flow of approximately $364,200 after debt service ($510,000 SDE minus $145,800 annual debt service). This represents a cash-on-cash return of approximately 364% on the $100,000 equity down payment — among the strongest return profiles available in the lower-middle-market acquisition space.

The deal is structured for accessibility. The owner's willingness to carry up to 15% seller financing ($135,000–$165,000 at the asking price range) reduces the SBA loan requirement and can improve the debt service math further. A buyer pursuing an SBA 7(a) loan with partial seller financing might reduce their required down payment or the monthly debt service burden, improving post-acquisition liquidity. The six-month transition commitment and the involvement of a tenured Service Manager as operational anchor substantially reduces execution risk for a first-time acquirer.

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11. Disclaimer

This Confidential Information Memorandum has been prepared by ClearValue Advisory based on information provided by the business owner. All financial figures are self-reported and unverified unless otherwise noted. This document does not constitute a formal business appraisal, USPAP-compliant valuation, or representation of accuracy or completeness. Prospective buyers should conduct their own independent legal, financial, and operational due diligence prior to making any offer. ClearValue Advisory is an AI-powered business analysis platform and is not a licensed business broker, M&A advisor, or appraiser. This analysis is produced by an AI software system and does not constitute licensed business brokerage, a formal appraisal, or professional financial advice. All information contained herein is confidential and may not be reproduced or distributed without written consent. Prepared by ClearValue Advisory · AI-Powered Business Analysis · bizvaluefree.com.

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ClearValue Advisory reports are based solely on owner-provided information. Buyers and their advisors should conduct independent legal, financial, and operational due diligence. ClearValue Advisory does not independently verify disclosures or the absence of undisclosed liabilities.

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Business: Sunrise Plumbing & Mechanical LLC Valuation Date: May 2026 Prepared By: ClearValue Advisory · AI-Powered Business Analysis · bizvaluefree.com Purpose: Seller advisory — market value estimate for sale planning

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1. Valuation Methodology ................. 1
2. SDE Reconstruction & Detailed Analysis 2
3. Working Capital Analysis .............. 3
4. Market Multiple Analysis .............. 4
5. Three-Scenario Valuation .............. 5
6. SBA Financing Analysis ................ 6
7. Buyer Persona Analysis ................ 7
8. Opinion of Value ...................... 8

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1. Valuation Methodology

For small and lower-middle-market businesses in the specialty trades sector with annual revenue under $5,000,000, the Income Approach — specifically the Seller's Discretionary Earnings (SDE) method — is the primary and most appropriate valuation methodology. The SDE method measures the total economic benefit available to a single owner-operator: net income plus all owner-specific expenses, non-cash charges, and one-time items that a new owner would not necessarily incur. This produces a normalized earnings figure that is directly comparable across businesses regardless of how the owner structures their compensation, benefits, or personal expense treatment.

SDE differs meaningfully from EBITDA in that SDE adds back the owner's full compensation package (salary, health insurance, vehicle, and personal expenses) on the premise that a new owner replaces the prior owner's economic role entirely. EBITDA, by contrast, assumes a management team in place and is the appropriate metric for businesses with $5M+ in revenue or full management depth. At Sunrise's revenue scale and owner-dependent operating model, SDE is the metric that buyers, SBA lenders, and business brokers will use to underwrite the transaction. This report uses a three-year weighted SDE (2023/2024/2025, weighted 20%/30%/50%) to give the highest predictive weight to the most recent performance.

The Market Approach serves as a secondary validation. Comparable transaction data for residential plumbing and mechanical contractors in the $1M–$3M revenue range consistently shows SDE multiples of 2.8x–3.8x, with the median falling at approximately 3.0x–3.2x for well-documented, recurring-revenue businesses. The Asset Approach is not the primary method here — Sunrise's value is substantially driven by its going-concern earnings power, customer relationships, and workforce, rather than the book value of its physical assets.

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2. SDE Reconstruction & Detailed Analysis

The following table reconstructs SDE from reported net income for each of the three completed tax years and the current-year YTD period. All add-back figures are owner-stated.

Complete SDE Reconstruction Table

> Note on 2026 YTD: Q1 2026 net income of $76,000 is pre-add-back net income only. Full add-back normalization for YTD is not applied here as the full-year owner compensation and benefit expenses have not yet been allocated by quarter. The YTD figure is a run-rate check, not a valuation input.

Weighted SDE Calculation (completed tax years only — 2023, 2024, 2025)

> Note: 2026 YTD is intentionally excluded from the Weighted SDE calculation. Partial-year data distorts a forward-looking SDE estimate. Q1 2026 net income of $76,000 annualizes to approximately $304,000 in pre-add-back earnings — consistent with the 2025 run-rate and confirming no material deceleration.

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3. Working Capital Analysis

Working capital is the cash tied up in the day-to-day operation of the business — specifically, money owed to the business by customers (accounts receivable) minus money the business owes to its vendors and suppliers (accounts payable). A buyer inheriting a business with a large AR balance effectively needs to finance that gap from their own capital at close, which increases the effective cost of the acquisition beyond the headline purchase price. Understanding the working capital position is essential for accurate down-payment planning and for structuring the LOI correctly.

Sunrise's working capital position is healthy and neutral to the transaction. A 38-day average collection period on a mix of 65% upfront / 35% net-30 invoiced revenue is well within industry norms for a plumbing contractor. The $93,000 net working capital position is positive, and the AP balance of $52,000 is well-managed relative to revenue. Buyers should confirm working capital treatment at LOI — whether AR transfers with the business or the seller retains receivables at close will affect the buyer's first-day liquidity position by up to $145,000.

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4. Market Multiple Analysis

Industry Baseline & Comparable Transactions

The specialty trades sector (plumbing, HVAC, electrical contracting) in the sub-$5M revenue range traded at SDE multiples of 2.8x–3.8x in 2023–2025, with the volume of transactions increasing each year as PE-backed roll-up platforms have expanded their focus to the lower-middle market. The following representative comparables illustrate the market:

Sunrise's profile — recurring revenue, owned real estate in Henderson, HOA contracts, long-tenured team, 12 years of history — positions it at the upper-middle of this range, above the pure service businesses without real estate and competitive with the multi-location comps.

Multiple Adjustment Analysis

> Applied to Weighted SDE of $457,750, the base-case multiple of 3.10x produces an enterprise value of approximately $1,419,000 — above the owner's stated range. However, buyers typically apply the multiple to the CapEx-adjusted SDE of $411,750 when significant near-term capital requirements are identified, which produces a base-case value of approximately $1,276,000. Given the asking price range of $900,000–$1,100,000, the owner's pricing is conservative and buyer-friendly — a meaningful negotiating advantage.

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5. Three-Scenario Valuation

Conservative Scenario: A buyer who discounts for the HOA concentration, the short Las Vegas lease, and the full $120,000 deferred van replacement will underwrite to the CapEx-adjusted SDE of $411,750 and apply a multiple at the lower end of the industry range. At 2.8x, this yields approximately $1,152,900 in enterprise value — supporting an asking price of $950,000–$1,000,000. This buyer will also seek a price reduction or seller concession to offset CapEx risk.

Base Case Scenario: The most likely buyer — an owner-operator or SBA-financed individual — applies the weighted SDE of $457,750 at a 3.1x multiple reflecting the business's above-average revenue base, recurring contract portfolio, and real estate, partially offset by the lease risk and concentration issues. This produces an enterprise value of approximately $1,419,025, supporting a fair market asking price at the top of the owner's stated range. The owner's $900,000–$1,100,000 pricing is below base-case fair value — suggesting significant room to negotiate upward with a qualified buyer.

Optimistic Scenario: A strategic acquirer or PE-backed roll-up platform that can mitigate the HOA concentration risk through portfolio diversification and assign value to the owned real estate, Google reputation, and service contract book independently may pay 3.4x the 2025 unadjusted SDE of $471,750. At $1,603,950, this scenario assumes full credit for the business's growth trajectory and places it competitive with the upper-range regional comparable transactions.

Recommended Asking Price: $1,000,000 – $1,100,000 ClearValue Advisory's analytical opinion is that a recommended asking price of $1,000,000 to $1,100,000 is well-supported and likely conservative relative to fair market value. The business's weighted SDE, recurring revenue quality, owned real estate, and 12-year operating history all support a multiple at or above 3.0x. The primary valuation constraints — Las Vegas lease expiry, HOA concentration, and deferred CapEx — are addressable before listing and are already partially priced into the conservative scenario. Listing at $1,050,000 (midpoint) with the seller's willingness to carry 15% seller financing creates a compelling, financeable acquisition at a below-market effective multiple.

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6. SBA Financing Analysis

Sunrise Plumbing & Mechanical is a strong SBA 7(a) candidate. The business has 12 years of operating history, three consecutive years of growing revenue and net income, a debt-free balance sheet, and recurring revenue comprising 60% of total revenue. SBA lenders will focus on the HOA concentration (22% in one client) and the Las Vegas lease term (18 months) as diligence items, but neither is a disqualifying factor — particularly if the owner initiates lease renewal negotiations prior to going to market.

SBA Financing Summary

SBA Payment Calculation:

• Monthly Rate: 10.75% / 12 = 0.008958
• Loan Amount: $900,000
• Monthly Payment: $900,000 × [0.008958 × (1.008958)^120] / [(1.008958)^120 − 1]
• (1.008958)^120 ≈ 2.934
• Monthly Payment: $900,000 × [0.008958 × 2.934] / [2.934 − 1] = $900,000 × [0.02629] / [1.934] = $900,000 × 0.01359 ≈ $12,234/month
• Annual Debt Service: ~$146,808

At a $457,750 Weighted SDE and $146,808 annual debt service, the DSCR is approximately 3.12x — more than double the SBA minimum requirement of 1.25x. This is among the most comfortable debt service profiles in the lower-middle-market trades sector and will be a significant competitive advantage in attracting qualified SBA lenders and buyers.

First-year cash flow after debt service: $457,750 − $146,808 = $310,942 available to the new owner. On a $100,000 equity investment, this represents a first-year cash-on-cash return of approximately 311%.

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7. Buyer Persona Analysis

Most Likely Buyer — Owner-Operator via SBA Financing The primary buyer for Sunrise Plumbing & Mechanical is an experienced trades professional or operations-savvy individual seeking to acquire an established, cash-flowing business rather than start from scratch. This buyer profile — often a working plumber, HVAC technician, or construction professional with 10+ years of field experience looking to own their own shop — is the most active buyer type in the specialty trades market. They are attracted by the 12-year operating history, the recurring service-contract base, and the tenured Service Manager who makes the business runnable from day one. SBA financing at 10% down makes this acquisition accessible at a $100,000 entry point. This buyer will prioritize the transition plan and may push for a longer side-by-side period to absorb the HOA relationships personally.

Secondary Buyer — Regional Plumbing or Mechanical Contractor (Strategic) A regional specialty contractor looking to expand their Las Vegas-Henderson footprint through acquisition — rather than organic growth — is the second most likely buyer profile. This buyer places a premium on the established brand reputation, the Google ranking, the service-contract book, and the owned Henderson real estate. They can absorb the HOA concentration risk because they already have a diversified contract portfolio, and they can address the Service Manager key-person risk by integrating the team into their existing management structure. A strategic buyer may offer at or above the base-case valuation, particularly if the Las Vegas market is a strategic priority.

Tertiary Buyer — PE-Backed Trades Roll-Up Platform A private equity-backed roll-up platform focused on the specialty trades sector (several of which are active in the Nevada market) would evaluate Sunrise as an add-on acquisition to a platform company. These buyers apply EBITDA-based underwriting at scale but often pay 3.5x–4.0x SDE for well-documented, recurring-revenue businesses in growing metros. The owned real estate and service contract book are highly attractive to this profile. The PE buyer will require more formal SOP documentation and may negotiate an earnout structure tied to retention of the HOA contracts.

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8. Opinion of Value

Based on the Income Approach using three-year weighted SDE of $457,750, a market-supported multiple range of 2.8x–3.4x, and the specific adjustments applied for Sunrise's recurring revenue quality, real estate ownership, operating history, lease risk, HOA concentration, and deferred CapEx, ClearValue Advisory's analytical opinion of value for Sunrise Plumbing & Mechanical LLC as a going concern is:

$950,000 – $1,150,000 (Recommended Listing Range) Midpoint: $1,050,000

The owner's stated asking price range of $900,000–$1,100,000 is fully supported by the income approach and is, in fact, modestly conservative relative to the base-case fair market value. Listing at $1,050,000 positions the business competitively, leaves room for buyer negotiation, and produces a strong SBA financing profile. If the owner addresses the Las Vegas lease renewal and begins documentation of the HOA relationships prior to listing, the upper bound of $1,150,000 is achievable with a qualified strategic buyer.

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ClearValue Advisory reports are based solely on owner-provided information. Buyers and their advisors should conduct independent legal, financial, and operational due diligence. ClearValue Advisory does not independently verify disclosures or the absence of undisclosed liabilities.

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Business: Sunrise Plumbing & Mechanical LLC Assessment Date: May 2026 Prepared By: ClearValue Advisory · AI-Powered Business Analysis · bizvaluefree.com

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1. Executive Assessment .................. 1
2. Deal Readiness Score .................. 2
3. Value Discount Factors ................ 3
4. Quick Win Action Plan (60-90 Days) .... 4
5. Deal Structure Recommendations ........ 5
6. Timeline Recommendation ............... 6
7. Operational Risk Assessment ........... 7
8. Tax Optimization Opportunities ........ 8

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1. Executive Assessment

Sunrise Plumbing & Mechanical is a well-run, financially healthy business that is genuinely marketable today. Twelve years of operating history, consistent revenue growth, a 60% recurring revenue base, an experienced team, and owned real estate at the Henderson location combine to create a solid foundation for a successful transaction. The owner's asking price is conservative relative to the income-based fair market value — a meaningful advantage in a market where many sellers over-price and languish.

That said, four specific risks will be raised by every qualified buyer and every SBA lender, and this seller should address them proactively rather than reactively. The Las Vegas primary-location lease expires in 18 months with no renewal confirmed — a deal-time distraction that becomes a deal killer if left unaddressed. The HOA contract that represents 22% of annual revenue is personally managed by the owner with only partial secondary coverage — creating a key-customer dependency that buyers and lenders will price into their offers. The Service Manager is so central to daily operations that the business cannot run at full capacity without them — a key-person risk that must be disclosed and mitigated. And the $120,000 van replacement requirement within 24 months is a known buyer concession that should be disclosed proactively rather than discovered during due diligence. None of these issues is fatal. All are solvable. The question is whether the seller addresses them before listing or allows buyers to use them as price-reduction levers.

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2. Deal Readiness Score

Score Interpretation: 6.73 / 10 — Marketable with Targeted Improvements. This score indicates a business that can be successfully marketed and sold today, but will achieve a meaningfully better price and a smoother transaction if the owner invests 60–90 days in the four highest-priority gaps before listing. At current readiness, buyer offers will cluster at the conservative-to-base range. After the recommended improvements, base-to-optimistic pricing becomes achievable.

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3. Value Discount Factors

Issue 1: Las Vegas Primary Lease Expiry (~18 Months)

• Current State: The Las Vegas service hub lease expires November 2027 with no auto-renewal confirmed and no renewal negotiation initiated.
• Buyer Perception: The Las Vegas location generates 70% of total revenue. An 18-month remaining term at LOI means the lease could expire during the post-close transition period. SBA lenders require a lease term at least equal to the loan term (10 years), or a guarantee that a renewal is available.
• Dollar Impact: Suppresses multiple by approximately 0.1x–0.2x; at $457,750 Weighted SDE, this represents $45,750–$91,500 in enterprise value risk.
• Recommended Fix: Contact the landlord immediately. Negotiate a 5-year renewal with a 5-year option. Secure a written assignability confirmation. Target completion within 60 days.
• Timeline: 30–60 days
• Value Recovery: +$45,750–$91,500 if a signed renewal is in hand at listing.

Issue 2: Service Manager Key-Person Dependency

• Current State: The Service Manager (8-year tenure) leads all dispatch, scheduling, and customer relations. The owner describes the business running because of this individual's presence.
• Buyer Perception: The loss of this person post-sale would cause meaningful operational disruption and customer attrition. Buyers will require retention assurance — typically an employment agreement with a minimum 2-year term and a bonus tied to retention.
• Dollar Impact: Multiple compression of 0.2x–0.3x without retention mechanism; approximately $91,500–$137,250 in enterprise value.
• Recommended Fix: Engage the Service Manager in the transition planning. Offer a retention bonus (typically 5%–10% of salary per year retained), funded from sale proceeds. Document the role's procedures.
• Timeline: 30 days
• Value Recovery: +$91,500 if employment agreement and retention package are in place at listing.

Issue 3: HOA Customer Concentration — 22% of Revenue

• Current State: A single HOA management group represents 22% of annual revenue (~$396,000 in 2025) under a recurring contract.
• Buyer Perception: Single-customer concentration above 20% is a standard SBA lender flag and will trigger specific underwriting review. If the contract is not assigned in the LOI or purchase agreement, lenders may condition the loan on proven revenue replacement.
• Dollar Impact: Multiple compression of 0.1x–0.2x; approximately $45,750–$91,500 in enterprise value.
• Recommended Fix: Request a written letter of comfort from the HOA management group confirming contract transferability. Accelerate the Service Manager's role as primary day-to-day contact to reduce personal dependency.
• Timeline: 45–60 days
• Value Recovery: +$45,750 if contract assignability is documented.

Issue 4: SOP Documentation Gap

• Current State: Operational procedures exist in ServiceTitan workflows and in team knowledge but are not documented in a transferable format.
• Buyer Perception: Undocumented processes increase perceived execution risk post-close and suppress multiple for buyers who are not experienced trades operators.
• Dollar Impact: Multiple compression of 0.1x; approximately $45,750 in enterprise value.
• Recommended Fix: Document 10–12 core procedures (dispatch workflow, service call intake, HOA account management, billing/invoicing) in a simple operations manual within 60 days.
• Timeline: 60 days | Value Recovery: +$45,750

Issue 5: Deferred Fleet CapEx — $120,000 Within 24 Months

• Current State: Three of the eight service vans are aging out with expiring manufacturer warranties. The owner estimates $120,000 in replacement cost within 24 months.
• Buyer Perception: Buyers will subtract the present value of this requirement from their offer — effectively a $60,000–$120,000 price reduction depending on their financing assumptions. If disclosed proactively, it is manageable. If discovered in due diligence, it becomes a renegotiation.
• Dollar Impact: Direct $120,000 buyer discount; equivalent to approximately 0.26x multiple at Weighted SDE.
• Recommended Fix: Disclose proactively in the CIM with a note that the seller is open to a price adjustment or seller contribution toward the first van replacement.
• Timeline: Immediate (disclose at listing)

Issue 6: Personal HOA Relationship Dependency

• Current State: Two long-time HOA contacts have been personally managed by the owner for 8+ years. The Service Manager has been a secondary contact for three years but is not yet the primary point of contact.
• Dollar Impact: Overlap with Issue 3; collectively suppresses multiple by 0.1x–0.2x.
• Recommended Fix: Immediately transition the owner to secondary contact on both HOA relationships and make the Service Manager the primary. Execute this before listing.
• Timeline: 30 days | Value Recovery: Combined with Issue 3: +$45,750

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4. Quick Win Action Plan (60-90 Days)

Completing P0 actions alone — lease renewal initiation and Service Manager retention package — will meaningfully shift buyer confidence and move the achievable price from the conservative scenario toward the base case. The combined P0+P1 actions can be accomplished within 45 days at a total out-of-pocket cost under $20,000, against a projected valuation improvement of $183,000–$274,000. That is a better return on 45 days of work than most capital investments this business will ever make.

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5. Deal Structure Recommendations

Option A: All-Cash / SBA Financed

• Structure: 100% at close via SBA 7(a) with 10% buyer down payment; no seller carry.
• Pros: Maximum liquidity at close; clean exit; no post-sale financial risk for seller.
• Cons: Buyer pool is limited to SBA-qualified buyers with $100,000+ down; SBA lender will diligence HOA concentration and lease.
• Best for: Qualified owner-operator buyers with trades experience.
• Likelihood of closing: High — strong DSCR makes this the natural structure.

Option B: SBA + Seller Financing (Recommended)

• Structure: 75% SBA loan at close; 15% seller note ($135,000–$165,000 at 5%–6% over 5 years); 10% buyer down payment.
• Pros: Seller carry demonstrates confidence in the business; improves SBA lender comfort on HOA concentration risk; widens buyer pool; seller earns interest income post-close.
• Cons: Seller retains $135,000–$165,000 in credit risk for 5 years; note is subordinated to SBA loan.
• Best for: All buyer types — owner-operator and strategic.
• Likelihood of closing: High — seller has already expressed willingness to carry 15%.

Option C: Earnout Structure

• Structure: 80% at close; 20% earnout over 24 months tied to HOA contract retention and revenue targets.
• Pros: Addresses buyer concern about HOA concentration; aligns seller incentive with transition success; can increase total proceeds above asking price if targets are met.
• Cons: Complex to negotiate; earnout disputes are common; seller must remain actively engaged.
• Best for: Strategic acquirer or PE buyer most concerned about HOA retention.
• Likelihood of closing: Medium — appropriate only if HOA contract transferability cannot be confirmed before listing.

Recommended Structure: Option B — SBA 7(a) financing with a 15% seller note. The seller has already indicated willingness, the DSCR supports it, and it directly addresses the SBA lender's HOA concentration concern by signaling seller confidence in the ongoing contract.

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6. Timeline Recommendation

Option 1: List Now (Month 0) The business is marketable today. Listing immediately captures the current Q1 2026 momentum and allows the owner to begin receiving qualified offers within 60–90 days. The risks are that the lease renewal and HOA relationship transition will be mid-process during buyer due diligence — creating negotiating leverage for buyers and potential price reductions.

Option 2: Wait 6 Months — Complete P0 and P1 Actions (Recommended) Investing 60–90 days to complete the lease renewal negotiation, Service Manager retention agreement, HOA contact transition, and SOP documentation adds an estimated $228,750–$320,250 in enterprise value — far exceeding the cost and time investment. A Q3 2026 listing would be well-timed with the fall buying season and positions the business with all key risks resolved.

Option 3: Wait 12–18 Months — Full Optimization Waiting a full year allows the owner to show 2026 as a completed tax year (confirming continued growth), implement AI scheduling (reducing Service Manager dependency), and potentially add 30–50 new service accounts. This path maximizes valuation but compresses the owner's retirement timeline. Given the stated 12-month ideal / 18-month acceptable window, this option is within scope but unnecessary — the business is already well-priced without a full optimization year.

Recommendation: Begin P0 and P1 actions immediately; target a Q3 2026 listing at $1,050,000 with seller carry of 15%. The owner's goals, financial position, and business quality all align for a successful Q3–Q4 2026 close — comfortably within the 12-month ideal timeline.

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7. Operational Risk Assessment

Deal Risk Flags

2024 OSHA Citation — Ladder Safety Violation — Moderate Risk

• What buyer's counsel will ask: "Provide the citation, the remediation documentation, and the certificate of compliance — was a fine assessed and is any follow-up inspection scheduled?"
• How to address before going to market: Compile the full OSHA file (citation, response, remediation proof, compliance certificate) into a diligence-ready folder; confirm with counsel that no follow-up inspection is open.

Informal HOA Customer Relationships — 2 Key Contacts — Moderate Risk

• What buyer's counsel will ask: "Are the HOA contracts in writing, assignable to a new owner, and are the key contact relationships transferable or personally dependent on the seller?"
• How to address before going to market: Obtain written assignability confirmation from the HOA management group; transition primary contact to the Service Manager before listing.

Lease Expiry Within 24 Months — Las Vegas Primary Location — Moderate Risk

• What buyer's counsel will ask: "Is the lease assignable, and can a new lease be negotiated before close?"
• How to address before going to market: Negotiate a renewal or extension prior to listing; secure a written assignability confirmation from the landlord.

Owner confirmed no pending litigation, undisclosed liabilities, outstanding tax issues beyond the items above, or regulatory matters as of the assessment date. Buyer's counsel will conduct independent verification during due diligence.

Key Person Risk

Service Manager

• Dependency Rating: Critical
• Reason: Leads all dispatch, customer relations, and service-tech scheduling; owner states "the business runs because Tom's there."
• This role represents significant key-person risk. A buyer will likely require an extended transition period or employment agreement.

Owner (HOA Relationship Management)

• Dependency Rating: High
• Reason: Two major HOA contacts personally managed for 8+ years; partial mitigation via Service Manager's 3-year secondary-contact role.

Operational Risk Assessment

• Single-Source Dispatch Dependency: All scheduling runs through one individual manually. No backup dispatcher or automated escalation exists.
• Fleet Aging: Three of eight vans at end of warranty cycle — $120,000 CapEx required within 24 months. Failure to plan creates buyer price concession leverage.
• SOP Documentation: Core procedures are undocumented. A departing Service Manager could take institutional knowledge with them.
• Licensing: Nevada Contractors Board licenses must be verified for transferability to a new owner-entity at close. Confirm with NV CBS prior to listing.

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8. Tax Optimization Opportunities

"The following are common tax optimization opportunities for businesses with your profile. These are not tax advice — they are areas worth discussing with your CPA or tax advisor before going to market. Addressing these before a sale can meaningfully increase your net proceeds."

Retirement Plan — High Priority No retirement plan is currently in place. As an S-Corp owner taking distributions, the business can establish a SEP-IRA (up to ~$69,000/yr deductible contribution for 2024) or a Solo 401(k) before the tax year closes. In the year of a sale, pre-funding a retirement plan from business income before liquidity can meaningfully reduce taxable income. Review with CPA immediately — this is the highest-dollar optimization available given the 12-month sale window.

Qualified Business Income (QBI) — Section 199A The owner is not currently claiming the QBI deduction, which can reduce pass-through taxable income by up to 20% for qualified S-Corp owners. Specialty trades contractors may be subject to limitations at higher income levels, but this should be reviewed by the CPA — any available deduction before the sale year reduces the owner's pre-sale tax burden.

Pre-Sale Timing — Installment Sale & Distribution Timing In a 12-month sale window, the timing of owner distributions, the structure of the sale (installment sale vs. lump sum), and any charitable contributions before liquidity all have material tax consequences. The seller note structure (Option B above) may qualify as an installment sale under IRC Section 453, deferring a portion of the capital gains tax into future years. The CPA should model both scenarios before the owner commits to a deal structure.

Section 179 / Bonus Depreciation — Van Replacement If the owner chooses to replace the aging vans before the sale (rather than disclosing deferred CapEx), Section 179 or bonus depreciation may allow full expensing of the vehicle cost in the tax year of purchase. This accelerates the deduction into the pre-sale year, reducing taxable income. Weigh against the SDE normalization impact — expensing vehicles in the sale year may reduce reported net income and affect the multiple calculation.

"These observations are generated by AI based on your business profile and common patterns in your industry. They are not tax advice and do not account for your complete tax situation. Always consult a licensed CPA or tax attorney before implementing any tax strategy, particularly in the year of a business sale."

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ClearValue Advisory reports are based solely on owner-provided information. Buyers and their advisors should conduct independent legal, financial, and operational due diligence. ClearValue Advisory does not independently verify disclosures or the absence of undisclosed liabilities.

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Business: Sunrise Plumbing & Mechanical LLC Prepared By: ClearValue Advisory · AI-Powered Business Analysis · bizvaluefree.com

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1. Current State Technology Assessment ... 1
2. Phase 1 — Foundation (Weeks 1-4) ...... 2
3. Phase 2 — Operations Automation (Weeks 5-12) . 3
4. Phase 3 — Revenue Intelligence (Months 3-6) .. 4
5. Phase 4 — Scale Enablement (Months 6-12) ..... 5
6. Financial Impact Summary .............. 6
7. Valuation Impact Statement ............ 7
8. Priority Matrix ....................... 8

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1. Current State Technology Assessment

Sunrise Plumbing & Mechanical has a more mature technology foundation than the average independent plumbing contractor at this revenue scale. ServiceTitan — the industry's leading field-service management platform — handles dispatch, job creation, technician assignment, invoicing, and customer history. QuickBooks Online manages accounting and payroll. Google Workspace supports internal communication. This stack is functional and respectable. However, the company is using these tools in their baseline configurations and has not adopted any AI-assisted features, automation layers, or analytics capabilities — leaving a significant operational leverage opportunity on the table.

The owner-identified primary bottleneck is scheduling: the Service Manager manually manages all dispatch and technician routing, an estimated 10–15 hours per week of high-skill time applied to a task that AI tools can handle in seconds. This creates three compounding problems: (1) the business's capacity ceiling is constrained by one person's cognitive bandwidth; (2) the Service Manager's departure would cause immediate operational disruption; and (3) missed scheduling windows — a direct consequence of manual overload — result in customer dissatisfaction and contract attrition. Solving this single bottleneck through AI-assisted dispatch is the highest-ROI technology investment this business can make before or after a sale.

Beyond scheduling, the business has no automated customer communication (appointment reminders, post-service follow-up, renewal prompts), no CRM-driven service-contract renewal pipeline, no revenue analytics dashboard, and no marketing automation for contract acquisition. Each of these gaps represents both a pre-sale improvement that increases the Deal Readiness Score and a post-sale growth lever for the acquirer.

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2. Phase 1 — Foundation (Weeks 1-4)

Focus: Activate AI-assisted scheduling within ServiceTitan and implement automated customer communication to immediately reduce the Service Manager's manual workload.

Implementation Priority: Activating ServiceTitan's AI dispatch and routing module is a configuration change, not a software purchase — the business is already paying for ServiceTitan and this feature is accessible within the existing subscription tier or at a modest add-on cost. The implementation timeline is 1–2 weeks of configuration and team training. This is the single most impactful technology action the owner can take before listing, because it directly addresses the Service Manager key-person risk identified in the Gap Analysis. A buyer reviewing the business post-implementation will see a dispatch operation that can function independently of any single individual — a material improvement to the Deal Readiness Score.

Example Tools: ServiceTitan Dispatch Pro, ServiceTitan Automated Reminders, Google Business Profile

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3. Phase 2 — Operations Automation (Weeks 5-12)

Focus: Systematize repeatable back-office and field operations to reduce owner and Service Manager dependency, creating documented, transferable workflows.

The operations automation phase directly addresses the owner dependency and SOP documentation gaps identified in the Gap Analysis. By building a digital SOP system in Notion or ClickUp, the Service Manager's institutional knowledge is captured in transferable, searchable form — a material change that moves the Operational Systems Deal Readiness dimension from 6.0/10 toward 8.0/10. A buyer who sees documented workflows can onboard faster, reduce their reliance on the seller's transition period, and finance the acquisition with greater confidence. The CRM-driven renewal pipeline is particularly high-value: automating 90-day pre-expiry outreach to all 340 service accounts could lift retention from 88% to 90%–92%, adding 7–14 accounts per year to the recurring base at essentially zero marginal cost.

Example Tools: ServiceTitan CRM, Notion, QuickBooks Online

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4. Phase 3 — Revenue Intelligence (Months 3-6)

Focus: Build data-driven customer acquisition and revenue analytics capabilities to improve revenue predictability and support a marketing-driven growth story for the buyer.

The revenue intelligence phase transforms Sunrise from a well-run reactive contractor into a proactively marketed, data-informed business — a distinction that buyers pay a premium for. A 15–25 contract/year acquisition rate, sustained for 24 months before a listing, would add $27,000–$45,000 in recurring annual revenue to the base and increase the Weighted SDE by $16,000–$27,000 — at a 3.1x multiple, that is $50,000–$84,000 in enterprise value added, against a Phase 3 tool cost of approximately $5,000–$14,000 per year.

Example Tools: GoHighLevel, Looker Studio, Mailchimp

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5. Phase 4 — Scale Enablement (Months 6-12)

Focus: Build capabilities that position the business for accelerated growth under new ownership — specifically reducing the new owner's learning curve and enabling geographic expansion.

Example Tools: RingCentral, Otter.ai, GoHighLevel

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6. Financial Impact Summary

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7. Valuation Impact Statement

Implementing Phases 1 and 2 before listing would produce the most material improvement to the Deal Readiness Score. Phase 1 directly addresses the Service Manager key-person risk by deploying AI-assisted dispatch — moving the Operational Systems dimension from 6.0/10 to approximately 8.0/10 and the Owner Independence dimension from 5.5/10 to approximately 7.0/10. Phase 2's SOP documentation and renewal automation address two additional Gap Analysis flags. Combined, these changes are projected to move the overall Deal Readiness Score from 6.73/10 to approximately 7.8/10 — into the "highly marketable" range.

The financial impact is equally compelling. Phase 1's 11–14 hours per week of labor recaptured, valued at approximately $26,400 annually in saved management time, flows partially into SDE via reduced overtime or the ability to handle more jobs with existing headcount. Phase 3's 15–25 new service contracts per year add $13,500–$22,500 in recurring revenue. Combined pre-sale SDE improvement from all phases: estimated +$40,000–$57,600 per year, which at a 3.1x multiple adds $124,000–$178,560 to the enterprise value.

Conservative estimate: Full implementation of Phases 1 and 2 before listing is projected to increase annual SDE by approximately $40,000, adding approximately $124,000 to the asking price at a 3.1x multiple — against a combined technology investment of approximately $2,100–$3,120 per year. From a buyer's perspective, a tech-enabled Sunrise Plumbing — with AI dispatch, documented SOPs, an automated renewal pipeline, and revenue analytics — commands a premium multiple because it signals a business that will perform consistently after the owner's departure. That confidence directly translates to a higher price and a faster close.

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8. Priority Matrix

Do First: Activate ServiceTitan Dispatch Pro AI routing and automated reminders in Week 1. These are configuration changes to software already in use, cost under $200/month, save 11–14 hours of Service Manager time per week, and directly address the single most cited key-person and operational risk in the Gap Analysis. No other technology investment delivers comparable impact per hour of implementation effort.

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Tools listed are examples only. Consult your advisor before implementing.

ClearValue Advisory reports are based solely on owner-provided information. Buyers and their advisors should conduct independent legal, financial, and operational due diligence. ClearValue Advisory does not independently verify disclosures or the absence of undisclosed liabilities.