What Is My Building Materials or Hardware Store Worth?

Independent building materials stores and hardware stores compete against big-box retailers by offering expertise, specialty products, and contractor relationships that Home Depot and Lowe's can't replicate. Well-positioned independents with strong contractor accounts command solid valuations.

Typical Valuation Ranges

Most building materials and hardware stores sell for 2.5x to 4x SDE.

Factors that push toward the higher end: Strong contractor account base, specialty product lines (windows, roofing, masonry), delivery fleet, revenue above $2M, owned real estate, knowledgeable staff, franchise or cooperative affiliation (Ace, Do it Best, True Value).

Factors that push toward the lower end: Competing on price with big-box stores, DIY consumer only (no contractors), aging inventory, owner manages all operations, short remaining lease, declining revenue.

Key Value Drivers

Contractor accounts — B2B relationships with builders, remodelers, and tradespeople create recurring, high-volume revenue. A store serving 100+ active contractor accounts has significantly different economics than a consumer DIY shop.

Specialty positioning — stores specializing in products big-box retailers don't carry well (specialty lumber, masonry, professional-grade tools) have defensible margins.

Inventory value — building materials inventory adds to the purchase price. Well-managed inventory in saleable condition is an asset; obsolete stock is a liability.

How to Increase Your Value

1. Build contractor accounts. Dedicated contractor sales, delivery service, and trade pricing grow your B2B base.
2. Specialize. Focus on product categories where you outperform big-box — expertise and availability matter.
3. Join a cooperative. Ace, Do it Best, or True Value membership provides buying power and brand recognition.
4. Invest in delivery. Contractor delivery service creates convenience and locks in accounts.
5. Build your team. Knowledgeable staff who provide expert advice are your competitive advantage.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.