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Plumbing has always been a good business. What has changed in the last few years is who wants to buy one. When I started writing about small business ownership two decades ago, a retiring plumber usually sold his trucks and customer list to a younger competitor for whatever the two of them agreed over coffee. In 2026, the same owner might hear from a private equity-backed home services platform, a search fund, a regional competitor and an SBA-financed first-time buyer, all in the same quarter.
That competition is pushing prices up, but only for companies that are ready for it. Below, I break down what a plumbing business is worth today, the multiples real deals close at, a plumbing valuation calculator, and how to sell your plumbing business without leaving money behind. Owners in neighboring trades may also want my HVAC business valuation guide, since many buyers shop both.
Short answer: how much is a plumbing business worth?
Most small and mid-size plumbing companies sell for about 1.7x to 3.2x seller’s discretionary earnings (SDE), with a median near 2.2x and an average of 2.5x, or roughly 0.4x to 0.85x annual revenue. The median plumbing business sold from 2021 to 2025 went for $638,730 on $1.17 million in revenue, and the 2025 median jumped to $837,500. Companies above about $2 million in revenue with recurring service work can sell for more than 3x, and larger, professionally managed companies attract private equity offers priced on EBITDA.
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Plumbing business valuation at a glance
The figures below come from BizBuySell’s plumbing valuation benchmarks, built from 226 reported plumbing sales and listings. They reflect the main street and lower middle market, where most independent plumbing shops trade.
| Median sale price (sold 2021 to 2025) | $638,730 |
| Median sale price in 2025 | $837,500 |
| Median revenue of businesses sold | $1,174,514 |
| Median owner earnings (SDE) | $311,598 |
| Average earnings (SDE) multiple | 2.49x |
| Average revenue multiple | 0.67x |
| Sale price vs. asking price | 92% to 95% of asking |
| Median days on market | 202 days |
The trend is hard to miss. The median sale price nearly doubled between 2021 and 2025, and the average SDE multiple climbed from 2.18x to 2.59x. Plumbing also runs fat margins for a trade: owner earnings averaged more than a quarter of revenue in the BizBuySell data, which is a big reason buyers like it.
The multiple range, from weak to strong
| Measure (sold plumbing businesses) | Lower quartile | Median | Upper quartile |
|---|---|---|---|
| Earnings (SDE) multiple | 1.66x | 2.24x | 3.15x |
| Revenue multiple | 0.42x | 0.59x | 0.85x |
| Owner earnings (SDE) | $176,702 | $311,598 | $545,500 |
| Annual revenue | $631,005 | $1,174,514 | $2,261,346 |
BizBuySell’s own rule of thumb lines up with what I have seen: plumbing companies doing more than $2 million in sales can sell for above 3x earnings, while shops under about $600,000 in revenue often trade below 2x. The reason is financing. A bigger company leaves a buyer enough cash flow to cover the loan and still pay themselves.
Plumbing business valuation calculator
Enter your numbers for a quick estimate. The calculator starts from the BizBuySell multiples above, scaled by revenue, then adjusts for recurring revenue, the type of work you do, and how much the business depends on you. SDE is your net profit plus your own salary, personal expenses run through the business, and one-time costs.
The output is a ballpark, not an appraisal. It cannot see your fleet, your lease, your reviews or whether your lead plumber plans to stay. If you want a second opinion using cross-industry multiples, my business valuation calculator takes about a minute. Mechanical contractors who also do new construction or remodels should read my construction company valuation guide too.
What makes one plumbing company worth more than another
A drain and sewer owner I advised a few years back had two jetter trucks, a camera rig and a trenchless setup he had paid a small fortune for. He assumed the equipment was the heart of his valuation. The buyer barely discussed it. What moved the offer was a book of recurring commercial contracts with restaurants and property managers, because that revenue showed up every month whether or not the phone rang. Here is how buyers weigh a plumbing company, roughly in order of impact.
| Factor | What buyers want to see | Effect on value |
|---|---|---|
| Recurring revenue | Membership plans, service agreements, and scheduled commercial work such as backflow testing or drain maintenance | The strongest lever; predictable revenue earns top-quartile multiples |
| Service vs. construction mix | Mostly repair, replacement, drain and water heater work, with little new construction | Construction work is bid-based and cyclical, so buyers discount it |
| Licensing | A master plumber or qualifier license held by someone staying with the business | A license that leaves with the owner can stall or kill a deal |
| Plumber bench | Licensed journeymen and apprentices who are staying, with low turnover | Skilled labor is scarce; a stable crew is a premium asset |
| Owner dependence | A dispatcher, service manager and estimator who run the day | Owner-run shops get lower multiples or longer earnouts |
| Customer concentration | No builder, property manager or GC above 10% to 20% of revenue | Concentration leads to price cuts or holdbacks |
| Pricing and margins | Flat-rate pricing, steady gross margins, documented add-backs | Higher, cleaner SDE raises both the multiple and the base |
| Reputation and lead flow | Strong online reviews and a lead source that is not just the owner’s phone | Marketing that transfers with the company reduces buyer risk |
The labor point deserves its own line. The Bureau of Labor Statistics expects about 42,000 openings a year for plumbers, pipefitters and steamfitters over the next decade, mostly to replace workers who retire or leave the trade. For a buyer, a company with a full bench of licensed plumbers is often worth more than the trucks and the customer list combined.
Private equity and plumbing: what the roll-ups pay for
Plumbing has become a favorite target of private equity-backed home services platforms. Names you may already know include Wrench Group, Apex Service Partners, Sila Services, Redwood Services, Neighborly (the parent of Mr. Rooter) and Authority Brands (Benjamin Franklin Plumbing), along with publicly traded Roto-Rooter. Most of them grow by buying established local companies and keeping the local brand.
These buyers price on EBITDA, not SDE, because they install their own management. M&A advisors commonly cite mid-single-digit EBITDA multiples for add-on acquisitions, with platform-sized companies going much higher. The catch is structure: rollover equity, earnouts and employment agreements are standard, so a big headline multiple can turn into less cash at closing than you expect.
| Company profile | How it is usually priced | Typical buyer |
|---|---|---|
| Under $600K revenue, owner-operated | About 1.5x to 2.2x SDE | Local competitor, employee, first-time buyer with an SBA loan |
| $600K to $2M revenue | About 2x to 3x SDE | Competitor, individual buyer, search fund, occasional add-on |
| $2M to $10M revenue, managed | About 3x to 4x+ SDE, or mid-single-digit EBITDA | Private equity add-on, regional strategic buyer |
| $10M+ revenue, platform-ready | Higher EBITDA multiples | Private equity platform, large strategic buyer |
Ranges are my estimates, based on BizBuySell sold-deal data and published M&A advisor commentary. Your number depends on the factors above.
Did a roll-up just call you?
An unsolicited offer from a platform is a starting point, not a market price. Earned Exits brings plumbing companies with $1M to $40M in revenue to its network of qualified buyers, so you can compare real offers before you commit to one.
How to sell your plumbing business
Plan on 12 to 24 months if you want a top-quartile price. Here is the sequence I recommend.
- Rebuild your financials the way a buyer will. Three years of clean statements, personal expenses separated, every add-back documented with receipts. Lenders will check all of it.
- Turn one-time customers into members. A membership or service plan program converts your best customers into recurring revenue. Even a year of growth here shows up in your multiple.
- Reduce construction and concentration exposure. A few years ago I watched a buyer walk away from a shop that did most of its work for one homebuilder, the same month that builder slowed its starts. If one customer is a big slice of revenue, start diversifying now.
- Settle the license question. Most states tie the plumbing contractor license to a qualifying individual. If that is you, develop a licensed successor or plan to stay on through the transition.
- Make sure your insurance story is clean. Buyers request loss runs and review liability and workers’ comp claims. If you are shopping coverage before a sale, my NEXT Insurance review is a quick way to benchmark what you pay.
- Get a professional valuation and pick your path. Broker-run sale, direct sale to a platform, or an internal sale to a key employee or family member.
- Market the business confidentially. Plumbers who hear a rumor start taking calls from competitors. Use blind listings and signed NDAs.
- Compare offers on cash, not headlines. Weigh cash at close against seller notes, earnouts, rollover equity and working capital targets. Many buyers finance with SBA or bank term loans, so understand how installment business loans shape what a buyer can afford.
- Close and hand off. Expect 60 to 90 days of due diligence after a letter of intent, then a transition period to introduce the new owner to staff and key accounts.
Who buys plumbing companies
| Buyer type | What they pay for | Watch out for |
|---|---|---|
| Private equity platform or add-on | Recurring service revenue, licensed crew, management depth | Rollover equity, earnouts, strict working capital targets |
| Local competitor | Customers, plumbers, service area density | Offers that assume your overhead disappears |
| Individual buyer with an SBA loan | Steady SDE that covers the loan and a salary | Loan limits; you may need to carry a seller note |
| Employee or family member | Continuity and a known team | Long payment periods with more risk on your side |
Do you need a broker to sell a plumbing company?
For a one or two truck shop under about $1 million in revenue, a local main street broker or a well-prepared direct sale to a competitor is usually enough. Above that, a broker who can put several qualified buyers in front of you tends to earn the fee by creating competition, screening out tire-kickers and holding the deal together through diligence. The firm I suggest plumbing owners talk to first is Earned Exits, and my Earned Exits review explains how their process and success fee work.
Planning to sell in the next year or two?
Earned Exits focuses on established companies with $1M to $40M in revenue, gets paid only when the business sells, and starts with a free valuation so you know where you stand in the multiple range.
Mistakes that shrink plumbing sale prices
- Selling the trucks instead of the business. Equipment matters far less than recurring revenue, crew and systems. Lead with those.
- Taking the first platform offer. One bidder sets a price. Several bidders set the market.
- Undocumented add-backs. Cash jobs and personal expenses that cannot be proven get stripped out of SDE, and your price drops with them.
- Letting the crew find out from a rumor. Losing one or two licensed plumbers mid-deal can reprice the whole company.
- Leaving taxes to the end. Asset versus stock structure and purchase price allocation can change your after-tax proceeds by a wide margin. My guide on how to sell a business covers the tax side in more depth, and a CPA should be in the room before you sign a letter of intent.
My take
Plumbing is a great trade to sell right now: margins are strong, skilled labor is scarce, and well-funded buyers are actively looking. But buyers pay up only for companies with recurring revenue, a licensed team that stays, and books that hold up in diligence. If you are a few years from retirement, use that time to build those three things. Then get an independent valuation and make sure more than one buyer sees your company before you sign anything.
Plumbing business valuation: frequently asked questions
How much is a plumbing business worth?
What multiple do plumbing businesses sell for?
How do I sell my plumbing business?
Who buys plumbing companies?
What happens to my plumbing license when I sell?
Is it a good time to sell a plumbing business?
How long does it take to sell a plumbing business?
Should I use a business broker to sell my plumbing company?
Amine Rahal is an entrepreneur and investor. He is passionate about alternative investments, Bitcoin, precious metals and startups. He enjoys covering US politics, retirement investing, alternative investing and geopolitics.
