# Home Services Model See how customer demand, service mix, crews, and pricing shape a home services business. - Canonical: https://finamodel.com/templates/home-services - Excel download: https://finamodel.com/templates/home-services.xlsx - Category: Operating Businesses - Model type: Operating model - Difficulty: Intermediate - Audiences: Investors & analysts, Founders & operators, Home-services operators and owners, Field-services PE and platform buyers, Multi-trade rollup investors, Lenders and analysts - Tags: home-services, field-services, multi-trade, clv-cac, dcf ## Overview This model helps you assess a home services business across repair, maintenance, installation, and recurring customer plans. It brings job demand, customer retention, service mix, and pricing together with the crews, vehicles, tools, and overhead needed to deliver the work. Use it to evaluate a new branch, acquisition, or growth plan. Test customer growth, crew capacity, pricing, and expansion investment to see how they affect profit, cash flow, and value. ## What's included - Customer-base inputs: opening customers, gross adds and add growth, repeat rate (retention), jobs per customer per year - Technician capacity: jobs per technician per day, working days, Year-1 utilisation with a ramp and a ceiling - headcount and van fleet derived from job volume - Service mix & pricing: four service-line shares and ticket indices, per-line net margins, blended average ticket, menu-price escalation, per-job booking fee - Cost structure: CAC per customer, technician comp and benefits, vehicle & fleet cost per technician, dispatch and corporate G&A as % of gross profit, depreciation, tax - Capital & working capital: maintenance capex %, fleet capex per net new technician, NWC % of revenue growth - Valuation: WACC, terminal growth, net debt, shares outstanding - Operations sheet: customer-base roll-forward, job volume, derived technician headcount and fleet, and a customer-economics block (revenue per customer, lifetime, CLV, CLV/CAC) - Revenue sheet: four service lines, booking & trip fees, recurring-revenue share, total revenue - P&L sheet: revenue to net income with per-line materials/parts cost, FTE labour, fleet, CAC-driven marketing and a gross-profit-geared overhead stack, EBITDA, EBIT, tax, identity check - FCF sheet: NOPAT, depreciation add-back, maintenance and fleet-expansion capex, working-capital change, unlevered FCF, discount factor, PV - Valuation sheet: sum of PV, terminal value, enterprise value, equity value, value per share, implied EV/EBITDA - Dashboard with jobs, revenue, EBITDA margin, recurring-revenue share, revenue mix by line, CLV/CAC, enterprise value and a revenue-to-net-income waterfall ## Home Services Financial Model: How This Multi-Trade Template Works This home services financial model template captures the economics of a multi-trade residential platform, from customer generation and job demand to technician capacity, service-line revenue, and cash flow. It is demand-led: customer counts and repeat rates drive jobs, which in turn determine crew size. Here is how the documented structure fits together. ### Demand-Led Customer Base Drives Job Volume Customer acquisition and retention form the demand engine. A starting customer base is rolled forward each year by adding gross new customers and subtracting churn, with retention expressed through a repeat rate. - Gross adds grow at a modest annual rate, so the installed base compounds rather than being reset by branch openings. Average customers then combine with a service frequency, expressed as jobs per customer per year, to yield total jobs. - Because demand is built from the customer book, the model is suited to platforms that grow by acquiring customers and flexing a shared crew across several service lines rather than by rolling out branches. The repeat rate also feeds customer lifetime value and the relationship between lifetime value and acquisition cost, showing whether lead-generation spending is translating into durable customer economics. ### Technician Capacity and Fleet Are Derived, Not Assumed Rather than treating headcount as a direct input, the model calculates the technicians needed to deliver forecast job volume. Total jobs are divided by jobs per technician per year, which is itself built from jobs per technician per day, working days, and a utilisation ramp. - That ramp starts below the practical ceiling and rises over the forecast, so each technician can complete more jobs as route density improves. Because technician labour scales with derived headcount rather than job volume directly, labour cost grows more slowly than the work being performed. - A matching van fleet is sized off the same technician requirement, and fleet-expansion capital expenditure is charged when net new technicians are added. This keeps capacity and capital investment aligned with the demand outlook. ### Service Mix, Pricing, and Gross Profit by Line Revenue is split across four service lines: recurring cleaning contracts, handyman and repair, appliance repair, and specialty trades. Each line carries a mix share, a price index relative to the blended average ticket, and a net margin, so the blended outcome reflects both the revenue weight and the cost character of each stream. - Recurring cleaning is treated as its own line because subscription cleaning has a distinct retention and margin profile from one-off calls. A per-job booking or trip fee layers ancillary revenue on top. - Materials and parts costs are netted into gross profit per line, with cleaning running wide and appliance repair carrying heavier parts content. The dashboard reports recurring revenue as a share of the total, allowing the mix to be read alongside margin. ### From EBITDA to Cash Flow and Valuation The profit and loss statement runs from revenue through per-line materials and parts cost, technician labour, fleet cost, customer-acquisition-driven marketing, dispatch and scheduling overhead, and corporate G&A to EBITDA, EBIT, tax, and net income. - Marketing scales with new customers rather than revenue, so as the retained base compounds while acquisition grows more slowly, marketing intensity falls and margin expands even without price increases. - The free cash flow bridge starts from net operating profit after tax, adds back depreciation, deducts maintenance and fleet-expansion capital expenditure, and charges working capital. - Discounted cash flows produce enterprise value, equity value, value per share, and an implied EV/EBITDA multiple, giving a consistent link from operating drivers to shareholder value. ## Demand-led and technician-derived The single-trade branch models (landscaping, pest-control, hvac-services) roll a branch estate forward and derive everything from branch count. This model is demand-led instead: an installed customer base drives job volume, and technician headcount plus a matching van fleet are derived from that job volume through a jobs-per-technician utilisation ramp - capacity follows the book, the right shape for a multi-trade platform that grows by acquiring customers and flexing a shared crew. ## Customer unit economics at the centre Marketing is CAC-driven - new customers times cost-per-acquired-customer, the lead-gen spend that dominates the category - and a CLV/CAC block reports revenue per customer, lifetime (driven by the repeat rate), CLV and the CLV/CAC ratio. The signature margin engine is that jobs-per-technician rise with route density while marketing scales only with new customers as revenue compounds off the retained base, so EBITDA margin expands over the forecast even at a flat menu price. ## An unlevered DCF with fleet-expansion capex The free-cash-flow bridge charges maintenance capex, fleet-expansion capex on net new technicians and a working-capital change before discounting at WACC and adding a Gordon-growth terminal value. Enterprise value bridges through net debt to equity value and a per-share figure, with the implied EV/EBITDA as a sanity check against where field-services platforms trade. ## Workbook structure ### Cover Workbook overview, sheet legend, units, and tab-colour key. - Title and scope framing - Sheet-by-sheet purpose summary - Units and tab-colour legend ### Assumptions Every driver in one sheet: customers, capacity, mix, costs, capital, valuation. - Opening customers, gross adds and growth, repeat rate, jobs per customer - Jobs per technician per day, working days, utilisation ramp and ceiling - Four service-line shares and ticket indices, per-line margins, blended ticket, escalation, booking fee - CAC, technician comp and benefits, fleet cost per technician, dispatch and G&A %, depreciation, tax - Maintenance capex, fleet capex per net new technician, NWC % - WACC, terminal growth, net debt, shares ### Operations Customer base, jobs, and derived capacity. - Opening plus gross adds less repeat-rate churn equals closing and average customers - Average customers times jobs-per-customer equals total jobs - Total jobs divided by jobs-per-technician equals derived technician headcount - Van fleet derived from headcount - Customer economics: revenue per customer, lifetime, CLV, CLV/CAC ### Revenue Four service lines and fees. - Each line equals total jobs times its mix share times the blended ticket times its ticket index times escalation - Recurring cleaning line split out - Booking & trip fees - Recurring-revenue share - Total revenue ### P&L Revenue to net income. - Per-line materials and parts cost to gross profit - Technician FTE labour and fleet cost - CAC-driven lead-gen marketing - Dispatch and corporate G&A geared to gross profit, to EBITDA - Depreciation, EBIT, tax on positive EBIT, net income, margins, identity check ### FCF Unlevered free cash flow bridge. - EBIT and unlevered tax to NOPAT - Add back depreciation - Maintenance capex and fleet-expansion capex on net new technicians - Change in net working capital on revenue growth - Unlevered free cash flow, discount factor and PV ### Valuation Discounted cash flow. - Sum of PV of explicit UFCF - Gordon-growth terminal value and its PV - Enterprise value - Less net debt to equity value - Shares outstanding and value per share - Implied EV/EBITDA ### Dashboard Headline metrics, revenue mix and a bridge. - Jobs, revenue and EBITDA margin - Recurring-revenue share - Revenue mix by service line - CLV/CAC and enterprise value - A Revenue to Net Income waterfall ## Features - **Demand-led, not branch-led:** Unlike the single-trade branch models (landscaping, pest-control, hvac-services), the installed customer base is the demand engine - opening plus gross adds less repeat-rate churn - and job volume falls out of the base, the right shape for a multi-trade platform that grows by acquiring customers and flexing a shared crew. - **Technician headcount is derived, not input:** Total jobs divided by jobs-per-technician-per-year (jobs per day times working days times a utilisation ramp) sizes the crew the platform must field, plus a matching van fleet - capacity follows the book instead of the other way round. - **CAC-driven marketing and CLV/CAC:** Lead-gen (Angi, Thumbtack, Google) is the signature cost of the category, so marketing is new customers times cost-per-acquired-customer, and an explicit CLV/CAC ratio tells you whether the lead-gen spend is actually building enterprise value. - **The utilisation-ramp margin engine:** Jobs-per-technician rise as route density climbs toward the ceiling, so labour grows slower than job volume, while marketing scales with new customers as revenue compounds off the whole retained base - both forces expand EBITDA margin over the forecast even at a flat menu price. - **Recurring cleaning split out:** The recurring cleaning contract line is broken out as its own stream because subscription cleaning carries a different retention and margin profile from one-off calls, and recurring-revenue share falls out of the mix on the dashboard. ## Use cases - **Multi-trade rollup underwriting:** Underwrite a home-services platform: flex the customer add pace, repeat rate and service mix, size the derived crew and fleet capex, and read enterprise value and implied EV/EBITDA against where field-services platforms trade. - **Customer unit-economics work:** Stress CAC and the repeat rate and read the effect on customer lifetime, CLV and the CLV/CAC ratio - the number that decides whether growth builds or burns value. - **Crew and fleet capacity planning:** Test how the utilisation ramp and jobs-per-technician change the derived headcount, van fleet and fleet-expansion capex as the customer base grows. - **Board and lender reporting:** Hand the dashboard to the board or a lender as a one-page view of jobs, revenue, EBITDA margin, recurring-revenue share, CLV/CAC and valuation. ## Frequently asked questions ### What is a home services financial model? A home services financial model captures the seven-year operating economics and intrinsic value of a multi-trade residential home-services platform - the cleaning, handyman, appliance-repair and specialty-trade roll-up. It rolls a customer base forward with repeat-rate churn as the demand engine, derives technician headcount and a van fleet from job volume, splits revenue across four service lines off a recurring-cleaning backbone, drives marketing off CAC, reports CLV and CLV/CAC, and discounts an unlevered free-cash-flow stream to enterprise value, equity value and value per share. ### How is it different from the single-trade field-services templates? The landscaping, pest-control and hvac-services templates are branch-led and supply-driven, rolling a branch estate forward and deriving everything from branch count. This model is demand-led and technician-derived - an installed customer base drives job volume, and technician headcount and the van fleet are derived from that volume - which fits a multi-trade platform that grows by acquiring customers and flexing a shared crew across service lines. ### What drives the EBITDA margin expansion? Two forces. Jobs-per-technician rise as route density and utilisation climb toward the practical ceiling, so technician labour grows slower than job volume. Simultaneously marketing scales with new customers at a modest add rate while total revenue compounds off the whole retained base, so marketing as a share of revenue falls. Both expand EBITDA margin across the forecast even at a flat menu price. ### Why an unlevered DCF, and where does CLV/CAC fit? The bridge charges maintenance capex, fleet-expansion capex on net new technicians and a working-capital change, discounts unlevered free cash flow at WACC and adds a Gordon-growth terminal value, then bridges through net debt to value per share. CLV/CAC - customer lifetime value over the lead-gen cost to acquire a customer - sits in the customer-economics block and on the dashboard as the number that tells you whether the marketing spend is building enterprise value. ## Related templates - [Landscaping Rollup Model](https://finamodel.com/templates/landscaping) - [Pest Control Services Model](https://finamodel.com/templates/pest-control) - [HVAC Services Rollup Model](https://finamodel.com/templates/hvac-services)