Plumbing business for sale and plumbing companies for sale
A plumbing business for sale is usually priced on seller's discretionary earnings, and broker guides put small shops at roughly 2 to 3 times SDE, with larger companies and those with recurring service agreements reaching 3 to 4 times. Buyers pay more for licensed technicians who stay, a service call mix that does not depend on new construction and a dispatcher who runs the day without the owner. On CompanyBrokers every plumbing listing shows revenue, SDE, technician count, service mix, asking price and the implied multiple, while customer lists, job reports and the lease stay in a data room you open after an NDA and a proof of funds step.
- NDA signed
- Proof of funds
- Data room
Plumbing companies for sale near me
Set a deal alert for plumbing businesses by state, price range and minimum SDE, and new listings reach your inbox the day an owner or a broker publishes them. Residential service, drain and sewer, commercial maintenance and new construction shops each have their own filters. Good plumbing companies often sell quietly to a known buyer, so an alert beats checking a search page once a week.
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How much is a plumbing business worth
Buyers start from SDE, which is net profit plus the owner's pay, interest, depreciation and one time costs. Owner operated shops are priced on that number, and shops with several crews and a manager are usually priced on EBITDA after a market salary is deducted for the owner. Mixing the two is the most common error, because an EBITDA multiple applied to SDE inflates the price.
| Business profile | Annual revenue | Team and profile | Typical multiple | Indicative price |
|---|---|---|---|---|
| Owner operator with one helper | $400,000 | Owner does most calls, no agreements | 1.5x to 2.5x SDE | $80K to $200K |
| Small residential service shop | $1,000,000 | 4 technicians, some repeat customers | 2x to 3x SDE | $350K to $750K |
| Established service company | $2,500,000 | 8 technicians, dispatcher, service agreements | 3x to 4x SDE | $1M to $2.5M |
| Multi crew firm with commercial work | $5,000,000 | Manager in place, maintenance contracts | 4x to 6x EBITDA | $2.5M to $6M |
These rows are worked examples to show the math, not listings, and the multiples follow the ranges in public broker valuation guides. Put your own numbers into the business valuation calculator to see a range for a specific shop, and read the full method in the business valuation formula guide.
What buyers check before buying a plumbing company
- Three years of financials with service, repair, drain, water heater, repipe and new construction revenue shown separately
- Service agreement count, renewal rate and revenue per agreement
- Technician tenure, pay structure and whether apprentices are in the pipeline
- The licensed master plumber on record and what happens if that person leaves
- Gross margin per job type and average ticket for repairs and replacements
- Lead sources, with repeat customers and referrals separated from paid advertising
- Fleet age, inventory and a dispatch or field service system that tracks every job
- Open warranty claims, insurance history and bonding
Licenses, structure and the transition
Most states require a licensed master plumber on record for the company, but the buyer does not have to hold the license. That makes a first time buyer possible, as long as the seller or a hired master plumber stays for a handoff period of three to twelve months. Most deals are asset sales that include vehicles, tools, inventory, phone number and customer list, and the buyer re files the contractor license and insurance, which adds weeks to closing. Sellers commonly carry a note for part of the price and sign a non compete for the service area.
Financing a plumbing business purchase
Lenders like plumbing because demand is steady and cash flow is easy to read. A buyer with industry or management experience can often qualify for an SBA loan to buy a business with 10 percent or more down, and lenders want three years of returns, the fleet list and proof of who holds the license.
Selling your plumbing company
Owners who reach the top of the range spend a year or two before listing building a service agreement base, hiring a dispatcher and getting out of daily calls. Prepare three years of returns, a job report by type, the fleet and equipment list and the licenses, then decide whether to list yourself on the Owner Listing plan or work with a broker. The step by step version is in sell my plumbing business.
How much does a plumbing business sell for
Published broker guides put small plumbing companies at roughly 2 to 3 times seller's discretionary earnings, and a company with strong recurring service agreements or $2 million or more in revenue can reach 3 to 4 times. A shop with $250,000 of SDE would usually price between $500,000 and $1 million.
How do I value a plumbing company
Add back the owner's pay, one time costs, interest and depreciation to get SDE, then apply a multiple based on technician count, service agreements, owner dependence and the mix of repair work versus new construction. Larger firms with managers are valued on EBITDA instead.
Can I buy a plumbing business with an SBA loan
Yes. Plumbing companies with three years of tax returns commonly qualify for an SBA 7(a) loan with 10 percent or more down. Lenders also check that a licensed master plumber will stay on or be hired for the transition.
Do I need a plumbing license to buy a plumbing business
In most states the company must have a licensed master plumber on record, but the buyer does not have to be one. Many buyers keep the seller's licensed qualifier for a transition period or hire one. Check your state licensing board before you sign.
Is a plumbing business a good investment
It can be. Repairs cannot wait and demand does not follow the economy closely. The risks are technician shortages, owner dependence and heavy reliance on new construction work, so buyers favor shops with service agreements and a dispatcher who runs the day.