How to Build a Sellable Trades Business: Insights from a $3.7 Billion Advisor

For many contractors, the daily grind of running a business—managing crews, ordering materials, and satisfying customers—leaves little time to think about the endgame. You're building a livelihood, but are you building a sellable asset? According to Wall Street veteran and trades industry advisor Gregg Schonhorn, this distinction is the key to unlocking true wealth and freedom.

In a recent episode of the Catalyst for the Trades podcast, Schonhorn, an advisor at SF&P Advisors who has been part of 435 deals totaling $3.7 billion, sat down with host Jennifer Bagley to reveal the playbook for building a highly valuable and sellable trades business. The insights he shared were too valuable not to break down.

The Foundational Mindset: Build It to Be Sold

The single most powerful piece of advice from Schonhorn is a fundamental shift in perspective: "I believe every single business owner should build a business to be sold whether you plan on selling it or not."

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This mindset forces you to create a business that doesn’t depend entirely on you. It pushes you to establish clean financials, repeatable processes, and a strong leadership team—hallmarks of a company that can thrive under new ownership. Whether you plan to sell in two years or twenty, operating as if a sale is on the horizon instills the discipline needed for sustainable, profitable growth.

The #1 Deficiency Holding Contractors Back

What separates a business that scales from one that stagnates? According to Schonhorn, it's not about working harder; it's about working smarter with your numbers.

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"The single largest deficiency in our industry is the lack of a CEO’s ability to understand a P&L and balance sheet."

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He argues that the journey from a startup to a multi-million dollar enterprise hinges on this financial literacy. While you can grind your way to the first million, scaling from $1 million to $5 million and beyond requires a deep understanding of your financial statements. Net profit, he emphasizes, is the engine that pays for everything: healthcare, new trucks, marketing, and expansion. Without a firm grasp on your numbers, you're flying blind.

Key Questions to Ask Before You Sell

Schonhorn provides a simple but powerful framework for any owner contemplating a sale. If you answer "no" to any of these questions, you should probably focus on building rather than selling.

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First, are you sick and tired of going to work? If the answer is no, keep going—you still have passion for the business. Second, have you hit a growth ceiling you cannot break through? If not, there's still room for growth and value creation. 

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Third, is the potential sale price life-changing money? If it's not, it may not be worth the transition just yet. Finally, do you know what you want to do next? Without a clear vision for your next chapter, you may feel lost or regretful after the sale.

The Formula for a Premium Valuation

So, what do buyers look for? It’s not just about revenue; it’s about the quality and predictability of that revenue. Schonhorn was clear that the highest multiples don't go to businesses with erratic, explosive growth, but to those with a proven track record of stability.

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"The best businesses are the ones that have consistent growth... a business that goes up 20% or 25% every single solitary year, like clockwork...will get a premium multiple."

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This steady, repeatable growth demonstrates a healthy, well-managed business with a strong market position. It reduces perceived risk for buyers, who are willing to pay a premium for predictability. He also debunked common myths about valuation, noting that well-run roofing businesses, for example, are fetching multiples of 7x, 8x, and even 10x EBITDA—far higher than the 4-6x often quoted.

Your Exit Strategy Starts Now

Perhaps the most urgent advice for owners is to start planning their exit long before they need to. The decisions you make today have a massive impact on your valuation years down the road.

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"When you think you're about three years away, you should be reaching out now," Schonhorn advises. He shared an example of a business owner who, with three years of preparation, could transform his company from a 6-7x business into an 8-9x business. This preparation involves cleaning up financials, optimizing operations, and strengthening the management team—strategic moves that can add millions to the final sale price.

The Takeaway: Build an Asset, Not Just a Job

Building a trades business is a demanding journey. By adopting the mindset of building a sellable asset, you not only prepare for a lucrative exit but also create a more resilient, profitable, and enjoyable business to run today. Focus on financial mastery, aim for consistent growth, and surround yourself with trusted advisors.

Ready to dive deeper and get all of Gregg Schonhorn's invaluable insights? Watch the full episode of Catalyst for the Trades on YouTube and start building a business that truly works for you.

Meet Your Hosts

Jennifer Bagley
Jennifer Bagley is the CEO and founder of CI Web Group, an AI-enabled marketing agency helping home service businesses achieve exceptional growth. With over 15 years of experience, she has led companies to significantly increase their leads and revenue through innovative strategies and emerging technologies. Her 12 Step Roadmap to Accelerated Results is a trusted framework for HVAC, plumbing, and electrical companies looking to expand their markets and achieve lasting success.

Chuck Staszkiewicz
Chuck is an accomplished entrepreneur and growth strategist, renowned for scaling All Hours Plumbing into a $20 million industry leader before its successful sale in 2023. A co-founder of The Opus & Golds Group, he helps companies grow through innovative strategies and operational excellence. Through his work, Chuck continues to inspire entrepreneurs to achieve their highest potential.

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