How Much is Sila Services Worth? Exploring Recent Home Services Acquisition Multiples

Seeing reports out this morning that Morgan Stanley Capital Partners (MSCP), the private equity arm of Morgan Stanley is reportedly exploring the sale of HVAC and plumbing services company Sila Services. MSCP acquired Sila in 2021 for an undisclosed price. Market insiders are estimating the deal could fetch a $1.5 billion price tag, equating to roughly 15x EBITDA.

Source: www.foundersib.com

Comparing 15x to Recent Home Services Transactions

After taking a dip in 2022, EV / EBITDA multiples for home services and related public companies have rebounded in 2024. The 3-year average sits around 13x as highlighted in the graph above.

From the outside15x for the privately held Sila Services seems reasonable for the company given recent comps, its growing scale, and assumed operational efficiencies extracted over the past few years.

To provide greater context, here is a look at 10 recent M&A transactions in the home services space, along with their acquisition prices and EBITDA multiples where available.

Septic Blue (Georgia Oak Partners) – 2023

• • Estimated EBITDA Multiple: Not disclosed

Friendly Group (Private Equity Firm) – 2023

• • Acquisitions: Multiple HVAC/Plumbing companies
  • Estimated EBITDA Multiple: 8-10x
  • Analysis: Friendly Group’s acquisitions of smaller, family-owned HVAC and plumbing companies were reportedly valued in the 8-10x range.

Empower Brands (MidOcean Partners) – 2023

• • Acquisitions: Koala Insulation, Wallaby Windows
  • Estimated EBITDA Multiple: Not disclosed
  • Analysis: Empower Brands’ recent acquisitions focus on insulation and windows, both high-demand services, but lack the scale and breadth of Sila’s operations, making a direct comparison difficult.

Threshold Brands (The Riverside Company) – 2023

• • Acquisitions: Mold Medics, Granite Garage Floors, Sir Grout
  • Estimated EBITDA Multiple: Not disclosed
  • Analysis: These acquisitions represent smaller niche home service franchises, where multiples are generally lower due to limited geographic reach and operational scale compared to a national player like Sila.

Strikepoint Group (New Mountain Capital) – 2023

• • Acquisitions: 12 HVAC/Plumbing companies
  • Estimated EBITDA Multiple: 10-12x
  • Analysis: Strikepoint Group has been actively consolidating smaller HVAC and plumbing companies, but its multiples remain below 15x.

Wrench Group (Leonard Green & Partners) – 2022

• • Minority Stake Sale: TSG Consumer Partners, Oak Hill Capital
  • Estimated EBITDA Multiple: 12-14x
  • Analysis: Wrench Group’s stake sale is another deal that approaches Sila’s 15x valuation. Wrench, like Sila, operates across multiple markets, and its strong EBITDA numbers have helped it command a higher multiple​.

TurnPoint Services (OMERS Private Equity) – 2022

• • Estimated EBITDA Multiple: 11-12x
  • Analysis: TurnPoint Services’ acquisition multiple sits within the more typical range for home services deals. Like Strikepoint, it focuses on smaller-scale consolidations rather than a national platform like Sila​

Legacy Plumbing (ACE Hardware) – 2022

• • Estimated Deal Value: Not disclosed
  • EBITDA Multiple: Not disclosed
  • Analysis: While details are scarce on this deal, ACE Hardware’s acquisition of Legacy Plumbing likely falls below Sila’s valuation due to its more limited scope​

Service Champions (Odyssey Investment Partners) – 2022-2023

• • Acquisitions: Multiple regional HVAC/Plumbing companies
  • EBITDA Multiple: 10-12x
  • Analysis: Service Champions has been aggressively expanding in the HVAC and plumbing markets but at more conventional multiples, emphasizing the uniqueness of Sila’s 15x valuation​

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Philip A. Saunders

Mr. Saunders serves as Mesa’s Vice President of Marketing, bringing with him a wealth of experience in strategic marketing and operations. In this role, Mr. Saunders is responsible for overseeing all marketing activities, utilizing a blend of traditional and digital strategies to enhance brand presence and profitability, managing a multi-million dollar marketing budget across various media platforms, and leading the continued implementation of CRM systems to streamline customer engagement and drive business growth.