How to Sell Your Plumbing Business
Expert M&A guidance for plumbing business owners ready to explore a sale. Learn what your business is worth and how to attract the right buyer.
The Plumbing Market for Sellers
Plumbing businesses remain highly sought-after acquisitions due to their essential service nature, recurring revenue potential, and skilled workforce. Buyers — from private equity to individual operators — recognize that plumbing is recession-resistant and benefits from aging housing stock and new construction alike.
Companies with a strong mix of residential service, commercial contracts, and new construction work are particularly attractive. Buyers value diversification across revenue streams, which reduces risk and smooths seasonality.
The current market favors sellers who have documented financials, retained their licensed plumbers, and built systems that allow the business to operate without the owner handling every service call.
Current State of Plumbing M&A
What's driving buyer activity and valuations in the Plumbing sector right now.
Home Services Consolidation Continues
Private equity-backed platforms are actively acquiring plumbing companies to build multi-trade home services businesses. If you're in a metro area with $500K+ in SDE, expect inbound interest from roll-up buyers.
Licensed Plumbers Are Scarce
The labor shortage in skilled trades means your workforce is a major asset. Buyers will pay more for a business with stable, licensed employees who have committed to staying post-sale.
Service Agreements Gaining Value
Plumbing businesses with recurring maintenance agreements or inspection contracts for commercial clients command higher multiples than those relying solely on emergency calls.
Water Treatment & Specialty Services
Plumbing companies that have expanded into water treatment, filtration, or backflow testing are seeing premium valuations due to higher margins and recurring revenue.
What Buyers Look for in a Plumbing Business
Understanding these value drivers can help you prepare your business and command a higher multiple.
Licensed Workforce
Journeyman and master plumbers on staff who will stay post-sale are critical. The license follows the individual — buyers need continuity.
Diversified Revenue
A mix of residential service, commercial contracts, and new construction reduces risk and makes the business more attractive.
Service Agreements
Recurring contracts for drain cleaning, backflow testing, or commercial maintenance create predictable revenue buyers love.
Reputation & Reviews
Strong Google reviews, BBB rating, and word-of-mouth reputation translate directly to customer acquisition costs a buyer won't have to pay.
Modern Equipment
Camera inspection equipment, hydro-jetting machines, and well-maintained service vehicles signal a professionally run operation.
Clean Financials
Three years of tax returns, clear job costing, and normalized SDE calculations make due diligence smooth and fast.
How Plumbing Businesses Are Valued
A clear explanation of how multiples work and what drives your number.
The SDE Method
Most Plumbing businesses under $5M in revenue are valued using Seller's Discretionary Earnings (SDE). SDE represents the total financial benefit to a single working owner — essentially, net profit plus owner salary, personal expenses run through the business, depreciation, and one-time costs.
Once SDE is calculated, it's multiplied by an industry-specific multiple (typically 2 to 3.5 for Plumbing) to arrive at an estimated business value. The specific multiple depends on revenue size, growth trajectory, customer concentration, and the value drivers listed above.
What About EBITDA?
There is also the EBITDA method — Earnings Before Interest, Taxes, Depreciation, and Amortization. Unlike SDE, EBITDA does not add back the owner's salary and is typically used for larger businesses ($5M+ revenue) with absentee ownership or multiple locations. We're showing SDE here because it applies to the majority of owner-operated Plumbing businesses.
Example Valuation
Who Buys Plumbing Businesses?
Different buyer types bring different deal structures, timelines, and pricing.
Private Equity
PE firms acquiring Plumbing companies as platform or add-on investments. They typically pay the highest multiples, especially for businesses with $500K+ SDE.
Strategic Acquirers
Larger Plumbing companies expanding geographically or adding capabilities. They value your customer base, team, and territorial presence.
Individual Buyers
Qualified individuals using SBA financing to acquire their first or next business. They want a stable, profitable operation they can manage.
How Selling Your Plumbing Business Works
A proven five-step process designed to protect your confidentiality and maximize your outcome.
Confidential Valuation
We assess your financials, contracts, equipment, and market position to determine a realistic value range.
Preparation & Packaging
We prepare a Confidential Business Review (CBR) — a professional document that presents your business to qualified buyers.
Confidential Marketing
Your business is marketed to our buyer network. Every buyer signs an NDA before receiving any identifying information.
Negotiation & Due Diligence
We manage incoming offers, negotiate terms on your behalf, and guide you through buyer due diligence.
Closing & Transition
We coordinate with all parties to close the deal and support the ownership transition.
Common Challenges When Selling a Plumbing Business
Being aware of these issues early lets you address them before they cost you money at closing.
License Dependency
If you're the only master plumber, the business can't operate without you. Having at least one other licensed plumber on staff — ideally someone who can qualify the company — is essential for transferability.
Owner-Centric Relationships
If key commercial accounts are loyal to you personally rather than the company, buyers see risk. Transitioning those relationships to account managers or lead plumbers before selling protects value.
Seasonal Cash Flow
Plumbing businesses with heavy new construction exposure may have seasonal revenue swings. Showing buyers how you manage cash flow and maintain profitability year-round is important.
Vehicle & Equipment Age
An aging fleet of service vehicles or outdated equipment can trigger buyer concerns about near-term capital needs. Addressing deferred maintenance before listing avoids valuation discounts.
Plumbing Business Sale FAQs
How much is my plumbing business worth?
Plumbing businesses typically sell for 2.0× to 3.5× SDE, depending on size, workforce stability, and revenue mix. Companies with strong service agreement bases and multiple licensed plumbers command the higher end of that range.
How long does it take to sell a plumbing company?
Most plumbing business sales take 6–9 months from listing to closing. Well-prepared businesses with clean financials and accurate pricing can close faster.
What makes a plumbing business more valuable?
Recurring revenue (service contracts), a stable licensed workforce, diversified revenue streams, strong online reputation, and clean financials all increase value. Reducing owner dependence is also critical.
Will buyers want me to stay after the sale?
Most buyers request a 30–90 day transition period. Some may offer extended employment or consulting arrangements, especially if you have key customer relationships.
Can I sell if I'm the only licensed plumber?
Yes, but it's more difficult. Buyers will need a plan to maintain licensing — either by hiring a qualifier or by obtaining their own license. Having another licensed plumber on staff significantly improves your options.
Do I need a broker to sell my plumbing business?
You can sell on your own, but a broker brings buyer access, negotiation expertise, and confidentiality protection. Most owners find the higher sale price and smoother process more than offset the commission.
What records do I need to sell my plumbing business?
Three years of tax returns, profit & loss statements, a list of equipment and vehicles, employee roster with compensation, customer concentration data, and any service contracts or recurring revenue documentation.
Why Work With John Salony
Experienced M&A advisor serving business owners across the Southeast.
"John made the entire process feel manageable. He understood our industry, found the right buyer, and negotiated terms that exceeded what I thought was possible."
Ready to Explore Selling Your Plumbing Business?
Schedule a confidential, no-obligation conversation. We'll discuss your goals, timeline, and what your business could be worth in today's market.
