Plumbing and commercial piping businesses are attractive because a lot of the work is non-discretionary. A real example from M&A Business Advisors is Pappas Piping Services, a commercial piping contractor out of San Jose, where M&A Business Advisors represented both sides and sold to Ormond Corporation. Here is what selling a plumbing or piping business looks like.
The deal
When a firm represents both sides, it is managing the full transaction between a known seller and a known buyer, which can speed a deal when the fit is right.
How plumbing and piping businesses are valued
Like most businesses under $5M, these sell on a multiple of earnings, either Seller's Discretionary Earnings (SDE) for smaller owner-operated shops or EBITDA for larger, management-run companies. The exact multiple varies by the specifics below, so treat any range as a starting point, not a quote.
Plumbing companies commonly trade around 2.4x to 4.5x of SDE for smaller shops and roughly 4x to 7x of EBITDA for larger, management-run businesses, with service-heavy and commercial-contract work at the higher end.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute callWhat buyers look for
- Service and repair work and recurring commercial contracts over one-off bids.
- Licensed plumbers and pipefitters who will stay.
- Low customer concentration and clean books.
- A real dispatch or project-management system.
Getting ready to sell
Shift toward recurring service and commercial contracts, keep your crew, and get the books clean. Then get a real valuation before you field offers. That is the conversation I have with owners.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute call