For plumbing contractors 1–3 years from selling

See what a buyer would really pay for your plumbing business.

Connect QuickBooks, answer 7 questions, and get a buyer's-eye valuation built from your actual books — what your business is worth, what a buyer would argue down, and what to fix first. The free preview takes minutes; the full memo is $499.

Read-only access to your books. We never share with anyone.

2.5–8.0×
What plumbing contractors typically sell for
× normalized EBITDA · blended LMM, marketplace & Pepperdine data (2026-Q1)
25%
Recurring-revenue benchmark buyers reward
The single biggest multiple lever in the trade — most owners sit below it
$499
vs. $25K–$75K for a formal CPA Quality of Earnings
One-time. The owner-facing version of the same workup — delivered in 24–48 hrs
What a buyer would negotiate down

The questions a buyer asks to pay you less.

A buyer's diligence team runs this analysis on every deal. Here's what they look for in a plumbing business — and the diagnostic tells you exactly where you stand on each, from your own books.

The business is really just you

If you hold the key accounts, price the jobs, or run dispatch yourself, a buyer sees risk rather than a business. A private-equity platform can absorb you under existing management — but a search-funder or SBA-backed individual is underwriting whether the company survives your exit, and discounts heavily for it. It's the largest single haircut on a trades business.

Too much break-fix, not enough recurring

Buyers pay more for predictable, renewable revenue — service-plan memberships, priority-service agreements, recurring commercial maintenance — than for one-off emergency calls. A book that's mostly break-fix reads as harder to repeat, and gets priced below a shop with a real membership base.

Customer or builder concentration

If a few accounts — or a couple of general contractors and home builders — drive most of your revenue, a buyer prices the risk of losing one. New-construction-heavy plumbers are especially exposed: that revenue is cyclical and relationship-dependent, and buyers know it.

A capex story you haven't documented

Vans, jetters, and sewer cameras wear out. A financial buyer normalizes maintenance capex to the replacement level and assumes a refresh bill early in the hold. Without a documented equipment age and replacement plan, they assume the worst and take it off the cash flow they're paying for.

What raises your price

The levers that move the multiple — and how much they're worth for you.

Grow recurring service-plan revenue

Converting your customer base to membership and priority-service plans is the highest-leverage move most plumbing owners have. Every buyer type pays more for contracted, renewable revenue, and a larger recurring base steadies your numbers between big jobs.

Build management around the owner

A promoted lead plumber/estimator and an ops or dispatch lead — with the top customer relationships moved onto them — converts an owner-operated shop into a business a buyer can run after you leave. That's what carries the multiple toward the top of the range.

Tighten the mix and the books

Shifting weight from cyclical new-construction toward recurring service and repair de-risks the revenue, and clean accrual books with a documented add-back trail protect your earnings from a quality-of-earnings haircut in diligence.

Where you'll be measured against the Plumbing benchmark.

The KPIs that move buyer multiples the most. The diagnostic scores your business against each, computed from your actual books.

Recurring / contracted revenue
Higher is better — the top multiple lever
25% of revenue
Gross margin
Pricing and job-costing discipline
~32%
EBITDA margin
What flows to the bottom line
~11%
Healthy customer-concentration ceiling
Above it, buyers price the risk
top customer under 25%
Typical industry growth
Beating it can add to your multiple
~4% / yr

Benchmarks are blended industry composites (lower-middle-market transaction data, trade-association reports, main-street marketplace insights), service businesses $1M–$10M revenue, 2026-Q1. Directional, not a precise bar — your memo measures you against your own books.

What $499 gets you

A real work product, in three formats — not a chat reply.

The full memo is delivered as three files, so you can read it, edit it, and model with it.

PDF memo

A polished, forwardable 5–10 page memo you can hand to a buyer, a lender, or your accountant the same day.

Editable Word doc

The same memo as an editable working copy, so you can adapt the story as your business changes.

Live Excel model

A working model — EBITDA bridge, add-back schedule, working capital, financeability — with real formulas you can flex.

Inside the memo:
  • A documented add-back defense — every personal expense, family wage, and one-time item, each traceable to the actual QuickBooks transaction behind it
  • Every red flag a buyer would raise, ranked by severity with an estimated dollar impact on your price
  • A prioritized 3–12 month plan to raise the price, each move sized against your real numbers
  • A buyer landscape — which platforms, search funds, and strategics would actually buy a business your size, and how each tends to structure the deal

Who actually buys plumbing contractors.

Plumbing has drawn heavy private-equity roll-up interest alongside HVAC, especially residential service-and-repair shops with recurring revenue. PE-backed platforms buy add-ons and pay up for owner-independent operations; independent sponsors and search funds buy operator-led shops to professionalize; regional strategics buy for crews and coverage. The memo maps which buyer types fit a business your size and how each structures a deal.

How it works

1
Connect QuickBooks

Sign in through Intuit. Read-only — every call we make is a read, never a write. About 5 minutes.

2
Answer 7 questions

Quick context a buyer would ask about that your books don't show. About 3 minutes.

3
See your free preview

Your buyer-readiness score, normalized EBITDA, value range, and top red flags — instantly, no signup.

4
Unlock the $499 memo

The full memo and all three deliverables, delivered within 24–48 hours.

One-time · $499

Honest about what it is.

The $499 memo bundles a documented add-back defense, a quality-of-earnings-style workup of the issues a buyer's team raises, and three deliverables (PDF, Word, Excel).

A formal Quality of Earnings from a CPA firm runs $25,000–$75,000 and adds proof-of-cash testing we don't do. This is the owner-facing version — the same questions, answered from your own books, at a price that makes sense before you've sold. We won't pretend it's more than that; the honesty is the point.

Start your diagnosticSee a sample memo

Free preview first. Pay only when you want the full memo.

Plumbing sale questions, answered

What multiple of earnings do plumbing contractors sell for?

Most Plumbing businesses in the $1M–$10M revenue range trade at roughly 2.5× to 8.0× normalized EBITDA, with a typical deal near 5.0×. Smaller, owner-dependent shops sit at the low end; larger, manager-run businesses with recurring revenue reach the top. Your actual number depends on your books — that's what the diagnostic computes. The range blends recent lower-middle-market closings, main-street marketplace sales, and the Pepperdine Private Capital Markets Report.

How do you value a plumbing business?

The way a buyer's diligence team does: we normalize your real earnings for owner add-backs and one-time items, then apply a defensible EBITDA multiple grounded in recent lower-middle-market and main-street plumbing transactions. Nothing is guessed off a revenue rule of thumb — every figure traces back to your QuickBooks data.

What raises the multiple a buyer will pay for a plumbing company?

Recurring service-plan revenue, a business that runs without the owner, a diversified customer and referral base, a healthy service-vs-new-construction mix, and clean books. The diagnostic scores each and quantifies the upside of moving up.

Do I need QuickBooks Online to use this?

Yes, at launch. We connect to QuickBooks Online read-only to build the analysis from your actual transactions — that's what makes it buyer-grade. QuickBooks Desktop, Xero, and FreshBooks are on the post-launch roadmap.

Is this a Quality of Earnings report?

No, and we won't claim it is. A formal QoE from a CPA firm costs tens of thousands and includes proof-of-cash testing we don't do. This is the owner-facing version: a defensible valuation, a documented add-back defense, and a quality-of-earnings-style workup of the same issues a buyer will raise — so real diligence holds no surprises.

How long does it take?

The free preview is instant once QuickBooks is connected. The full $499 memo arrives within 24–48 hours.

I'm a few years from selling. Is it still worth doing now?

Now is the right time. The things buyers discount — owner dependence, thin recurring revenue, builder concentration — take 6 to 24 months to fix. Finding them now lets you go to market once, prepared, instead of discovering them in the middle of a buyer's diligence.

Is my financial data safe?

Yes. We connect to QuickBooks read-only — every call is a read, never a write. Your data is encrypted, never used to train AI, and never shared with brokers or buyers. You can disconnect and delete everything anytime.

A different trade?

See what your plumbing business is worth.

Connect QuickBooks, answer 7 questions, and see your buyer's-eye preview — no signup, no email.

Start your diagnostic