What Is My Plumbing Business Worth?

Plumbing companies are one of the most in-demand acquisition targets in the home services sector right now. Private equity firms are aggressively rolling up plumbing businesses, and individual buyers see the trade as recession-proof with high barriers to entry.

Here's how to think about what your plumbing business is worth.

Typical Valuation Ranges

Most plumbing businesses sell for 2.5x to 4x SDE (Seller's Discretionary Earnings). Larger operations with management teams and $1M+ EBITDA can attract PE buyers paying 5x to 7x EBITDA.

Factors that push toward the higher end:

• Residential service agreement base (maintenance contracts)
• Mix of residential and commercial work
• Management team that runs daily operations
• Revenue growth over 15% annually
• Multiple service trucks and licensed plumbers on staff
• Strong online reviews and local brand recognition

Factors that push toward the lower end:

• Owner is the lead plumber on every job
• Revenue dependent on new construction (cyclical)
• No service agreements or recurring revenue
• Difficulty retaining licensed plumbers
• Concentrated customer base (one GC is 30%+ of revenue)

Why Buyers Want Plumbing Companies

Essential service. Pipes break regardless of the economy. Emergency plumbing work is about as recession-proof as it gets.

Licensed trade. Plumbing licenses create a real barrier to entry. New competitors can't just show up and start competing — they need licensed journeymen and masters.

Recurring revenue opportunity. Drain maintenance plans, water heater flush programs, and annual inspections create predictable revenue that buyers will pay a premium for.

Roll-up economics. PE firms love plumbing because they can buy a platform company, add smaller operators, and build route density. The combined entity is worth more than the sum of its parts.

Key Metrics Buyers Evaluate

Revenue Per Truck

Well-run plumbing companies generate $250K–$400K+ per service truck annually. Below $200K suggests utilization issues or pricing problems.

Service vs. Project Mix

Buyers prefer a heavy mix of service and repair work (higher margins, more predictable) over new construction (lumpy, lower margins, GC-dependent). A 60/40 or 70/30 service-to-project ratio is attractive.

Average Ticket

Higher average tickets indicate a company doing meaningful repair and replacement work rather than just clearing drains. Average tickets above $500 for residential service are strong.

Technician Retention

Licensed plumbers are extremely hard to find. If your team stays, that's a major asset. If you're constantly recruiting, buyers will worry about continuity.

Service Agreement Count

Even a small base of recurring maintenance agreements — 200+ active agreements — meaningfully changes your valuation. It's the single most impactful thing you can build.

How to Increase Your Plumbing Business Value

1. Build a service agreement program. Offer annual maintenance plans for water heaters, drain lines, and fixtures. Even charging $150–$200/year per household creates recurring revenue and a captive customer base.
2. Hire and develop licensed plumbers. Invest in apprenticeship programs. The more licensed plumbers you employ, the less dependent the business is on you.
3. Reduce new construction dependence. Service and repair work is more valuable than project work. Shift your marketing spend toward residential service calls.
4. Track your numbers. Revenue per truck, cost per lead, close rate, average ticket. Buyers want data-driven operations.
5. Build your online presence. Google reviews dominate plumber selection for homeowners. Get to 200+ reviews with a 4.7+ rating.
6. Secure your fleet and equipment. Well-maintained, branded trucks and modern equipment signal a professional operation.

Ready to Find Out What Your Plumbing Business Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential assessment of your business.