By Oliver Bogner, Managing Partner at The Advisory Investment Bank
In today’s market, there’s an undeniable trend:
Wall Street has discovered Main Street
Private equity groups are aggressively acquiring HVAC, plumbing, pest control, landscaping, and fire safety businesses across the country — and they’re moving fast.
But here’s the problem: too often, they’re trying to buy great companies for less than they’re truly worth.
That’s where we come in.
At The Advisory Investment Bank, we exist to help Main Street business owners compete with Wall Street — and win.
We’re proud to have been named by Axial as a Top 5 Lower Middle Market Investment Bank for the third consecutive quarter in 2025, ranking #3 out of more than 4,000 firms nationwide.
That recognition matters to us not because of ego, but because it proves something bigger:
The best businesses in America aren’t built in boardrooms — they’re built by founders in the field.
And they deserve Wall Street-level outcomes when it’s time to sell.
Why You Shouldn’t Take That “Friendly” Buyer Call
Let’s start with one of the most common mistakes we see.
If a private equity group or “strategic buyer” calls you directly with an offer, you should run — not walk.
Why?
Because those buyers are trained to make off-market offers — deals that exclude advisors, avoid competition, and let them buy great companies for a discount.
They’ll take you to dinner, build rapport, pour you a great bottle of wine, and say things like:
“We’re only able to value your business off your tax return.”
It sounds professional. It feels fair.
But it’s not.
The $1.5 Million Offer That Became a $9 Million Exit
We once worked with an HVAC business doing about $4 million in annual revenue.
The owner was showing roughly $200,000 in net income on his tax returns — because, like many founders, he ran legitimate expenses through the business.
A large national buyer approached him directly and offered $1.5 million to buy the company. They told him their “6–7x multiple” was standard.
Here’s the truth: that multiple wasn’t wrong — but the base number was.
They were calculating it off unadjusted EBITDA, not the true adjusted EBITDA that reflects add-backs like owner compensation, one-time expenses, and non-recurring costs.
When our team at The Advisory got involved, we dug deep. We scrubbed every expense, every statement — as I tell my team, “look for the $100 bills in the seat cushions.”
We found $1.2 million in adjusted EBITDA
We then took the business to market — to all qualified buyers at once — and created a competitive bidding process.
The result?
That same company that was offered $1.5 million sold for nearly $9 million at an 8.5x multiple.
That’s the difference an advisor makes.
The 5 Steps to Get Wall Street to Pay Up
After hundreds of transactions, we’ve seen what actually moves the needle.
Here are five ways to maximize your valuation and make sure Wall Street pays what your business is truly worth:
1. Hire the Right Advisor
It’s simple: you can’t fight Wall Street alone.
There are 150+ HVAC aggregators, 90+ landscaping roll-ups, and dozens more across pest control, fire safety, pools, and accounting. Each one wants off-market deals.
A specialized investment bank like ours knows who the real buyers are, what they’re paying, and how to position your story to get multiple offers — not just one.
We pay for ourselves, because we create a competitive environment that drives prices up.
2. Tell a Scalable Story
Buyers don’t just buy numbers — they buy narratives.
Two nearly identical businesses can have wildly different outcomes depending on how the founder tells the story.
If you’re excited about your industry, articulate a clear growth vision, and show how joining a larger platform can create synergy — one plus one equals four — you’ll win higher bids.
We’ve seen identical HVAC businesses sell for 8x vs. 12x multiples simply because one owner could sell the vision.
3. Have QofE-Ready Financials
Before a deal closes, buyers commission a Quality of Earnings (QofE) — an audit that validates your numbers.
If your books aren’t clean, your deal will get retraded (renegotiated downward).
That’s why we help founders prepare QofE-ready financials before going to market.
Sometimes we even commission a sell-side QofE, so our version becomes the benchmark — not the buyer’s
4. Reduce Founder Dependency
If you’re still the hub of every decision, every client call, every quote — buyers see risk.
You need systems, processes, and a capable leadership layer in place.
Build a strong number two. Empower them. Show that the business can thrive without you.
That’s how you convince buyers your company is scalable — not a personality-driven operation.
5. Build Recurring Revenue
Recurring revenue — maintenance plans, memberships, and service contracts — is the single most powerful valuation driver in essential services.
Buyers pay a premium for predictability
If 80–90% of your revenue is recurring, your multiple can jump from 6x to 9x or even 10x — especially if you’re running modern systems like ServiceTitan or Aspire.
It’s not about just increasing revenue — it’s about increasing reliability.
The Bottom Line
Wall Street buyers aren’t evil — but they’re strategic.
Their job is to buy great companies for less than they’re worth.
Our job at The Advisory Investment Bank is to make sure that doesn’t happen.
We represent Main Street — and only Main Street.
We’re 100% sell-side, which means we never represent the buyer.
We exist to get you the best price, best terms, and best partner when you sell your business.
So if you’ve been approached by a buyer — or are just curious what your business might be worth — reach out.
Let’s find out what Wall Street would really pay when you have the right advisor on your side.
Contact: info@theadvisoryib.com
Learn more: theadvisoryib.com
