Plumbing Business Valuation
Plumbing Business Valuation Calculator & Exit Planning Built for Contractors
We built one platform that tracks your plumbing business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Plumbing Owners Have No Idea What Their Business is Actually Worth
Current Plumbing Valuation Multiples (2026)
Plumbing values remain strong thanks to PE consolidation and recurring revenue potential. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Plumbing Business Value
Revenue and earnings matter, but they're just the starting point. Buyers dig deeper. Here are the factors that separate a 2x multiple from a 4x multiple:
Service Agreements
30%+ Recurring
Maintenance contracts with residential and commercial customers create predictable monthly cash flow. Buyers pay serious premiums for this stability.
No agreements = unpredictable revenue
Licensed Plumbers
Multiple Licenses
If you're the only master plumber, you ARE the business. Buyers need to know operations continue without you pulling permits.
Single license = single point of failure
Commercial Mix
40%+ Commercial
Commercial contracts mean bigger jobs, longer relationships, and less price shopping. Pure residential gets commoditized fast.
100% residential = margin pressure
Owner Role
Sales & Oversight
Still running service calls? That's an owner job, not a business asset. Transition to sales, estimating, and team leadership.
Owner in the van = owner wage only
Tech Retention
5+ Techs, Low Turnover
Good plumbers are hard to find. A stable, tenured team signals strong culture and reduces buyer anxiety about post-sale chaos.
Revolving door = red flag for buyers
Systems & Software
Modern Dispatch/CRM
ServiceTitan, Housecall Pro, or similar platforms show you run a real operation. Paper tickets and spreadsheets scare buyers away.
No systems = integration nightmare
How to Value a Plumbing Business
The U.S. plumbing industry includes over 130,000 contractors generating approximately $140 billion in annual revenue. Plumbing businesses have attracted significant buyer interest due to the essential nature of the service and the growing skilled labor shortage.
Seller's Discretionary Earnings (SDE) is the primary valuation method. Plumbing businesses typically sell for 2.0x to 4.0x SDE. Companies at the higher end have a strong mix of residential service and commercial contract work, licensed journeyman plumbers, and dispatch operations that don't require the owner to run calls.
Revenue multiples for plumbing businesses generally range from 0.25x to 0.55x annual revenue. Service and repair-focused companies with higher margins consistently command premiums over new construction plumbing contractors.
The unique valuation factor for plumbing businesses is the licensed workforce and service agreement base. Master plumber licenses are required to operate in most jurisdictions, and licensed plumbers are increasingly difficult to recruit. A company with 5+ licensed plumbers has a workforce asset that takes years to build. Service agreement revenue — drain maintenance, water heater flushing, annual inspections — creates recurring income streams that buyers value at a premium over one-time service calls.
Like HVAC, plumbing has become a prime target for PE-backed roll-ups and home services platforms. The skilled trades labor shortage continues to elevate valuations for companies with strong technician teams. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do plumbing businesses sell for?
Most plumbing businesses sell for 2.2x – 3.8x SDE or 0.4x – 0.85x annual revenue. Companies with strong service agreement bases and multiple licensed plumbers command the higher end. YourExitValue shows you exactly where you fall.
How do service agreements affect my plumbing company's value?
Service agreements are one of the biggest value drivers in plumbing. Buyers view recurring revenue as more stable and predictable than one-time service calls. Moving from 10% to 30%+ recurring can add 0.5x or more to your multiple.
How long before selling should I start tracking value?
Ideally 2-5 years before your target exit. This gives you time to build recurring revenue, reduce owner dependence, hire additional licensed plumbers, and document the growth trends that buyers pay premium prices for.
Who buys plumbing businesses?
PE-backed consolidators are the most active buyers right now, paying premium multiples for quality operations. You'll also see individual buyers, strategic acquirers (larger plumbing or HVAC companies), and family offices. Each values different things.
What valuation method is used for plumbing businesses?
Most plumbing businesses under $1M in earnings use SDE (Seller's Discretionary Earnings) multiples. Larger companies use EBITDA multiples. Revenue multiples provide a quick sanity check but aren't the primary method.
What's the fastest way to increase my plumbing business value?
The biggest quick wins: 1) Launch or expand service agreements to hit 30%+ recurring, 2) Get another plumber licensed, 3) Stop running calls yourself, 4) Clean up your financials. Most owners add 25-40% in value within 18 months.