Selling or retiring from your plumbing company
Selling a plumbing business comes down to two things: what it earns, and whose name is on the master license, because a buyer can't run your company the day after closing without one.
What plumbing companies sell for
Illustrative estimate- Owner-run, valued on SDE
- 1.7x to 3.15x
- times seller's discretionary earnings
- Managed, valued on EBITDA
- 3.75x to 7.25x
- times adjusted EBITDA
Small, owner-run plumbing companies sold on BizBuySell from 2021 to 2025 went for a median 2.24x seller's discretionary earnings (SDE), with the middle half between 1.66x and 3.15x. The median sale was $638,730 on about $1.17M of revenue. That is the first band above.
Larger companies with a manager in place are priced on adjusted EBITDA instead. Kingsway, a public company, bought Southside Plumbing and M.L.C. Plumbing for about 6.25x adjusted EBITDA each (our arithmetic on the prices and earnings they disclosed), with seller notes and earnouts in the deals. That is the second band. Both bands are illustrative, not a price for your company. And before either one counts, a buyer will ask who holds the master license and what happens to it when you leave. Read how the license works in a sale.
How we calculate value (engine config 2.0.0).
This is an educational estimate, not an appraisal. RetireFromTrades gives an illustrative range based on what you told us and on general market information. It is not a formal business valuation or appraisal, and it is not an offer to buy your business. We are not a business broker, M&A adviser, CPA, lawyer or financial adviser, and nothing here is legal, tax, accounting or investment advice. Real offers depend on your actual financial records, buyer diligence, deal terms and market conditions, and can be higher or lower than this range. Before you make any decision, talk to a licensed professional. If you ask, we can introduce you to an independent licensed business broker; we do not broker, negotiate or take part in any sale.
The 5 things buyers check first
A master license belongs to a person, not the company, so if you're the only qualifier a buyer needs a plan to replace you before they can close.
Service work versus new construction
Repair, drain and replacement calls earn more interest than builder work, which is bid thin, paid slowly and tied to the housing cycle.
How much the business needs you
If you sell, price, dispatch and answer the phone, a buyer is buying you, and they will pay less or hold part of the price back until you've handed it over.
Buyers and SBA lenders check your numbers against your tax returns, so add-backs you can document are worth more than ones you can't.
Recurring plans and a stable crew
Membership plans, commercial service contracts and licensed plumbers who stay give a buyer revenue and capacity they can count on.
Who buys plumbing companies
Most plumbing owners in the $1M to $15M range sell to one of four kinds of buyer. PE-backed home services platforms are the loudest: a PE-backed buyer was on 62.8% of 2026 HVAC, plumbing and electrical deals Salt Creek Advisory tracked. Yet PE-backed groups run only about 0.9% of US HVAC and plumbing contractor locations, so most companies still change hands another way. Holding companies such as Kingsway buy steady cash flow. Commercial and mechanical contractors buy backlog and service contracts. And individuals with SBA loans do a large share of small deals: first-time buyers made 46% of Main Street acquisitions in IBBA's Q4 2025 survey. Each one reads your license, work mix and books differently. See who buys plumbing companies.
Every way out, not just a sale to private equity
- Private equity add-onA platform buys you and folds you in.
- Local or regional competitorSomeone who already knows your market.
- Individual buyer with an SBA loanStill the most common buyer at Main Street size.
- Your employeesA foreman, GM or group buys you out over time.
- Your familyA real sale at a fair price, with a plan.
- ESOPAn employee stock plan buys some or all of the company.
- Orderly wind-downFinish the work, sell the equipment, close well.
Plumbing guides
What makes a plumbing company worth more?
What is a plumbing business worth? The 23 things buyers check, from the master license to service mix, how each buyer reads them, and the red flags to fix.
Who would buy my plumbing business?
Selling a plumbing business to private equity, a local rival or an SBA buyer: who buys companies your size, what each pays for, and who is active now.
Does my plumbing license transfer when I sell?
Can I sell my plumbing license? No, it belongs to you, not the company. What buyers need instead, the TX, FL, MA, NYC and CA rules, and a plan.
What are the steps to sell my plumbing company?
How to sell a plumbing business from three years out to closing: the license plan, service mix, membership plans, buyers, the LOI, diligence and handover.
What can I add back on a plumbing company's books?
Plumbing business add-backs, item by item: what you can add back, the proof a buyer wants, which ones buyers reject, and how replacing you is priced.
Selling a plumbing company by state
- CaliforniaPlumbing in California
- FloridaPlumbing in Florida
- IllinoisPlumbing in Illinois
- MassachusettsPlumbing in Massachusetts
- New JerseyPlumbing in New Jersey
- New YorkPlumbing in New York
- North CarolinaPlumbing in North Carolina
- OhioPlumbing in Ohio
- PennsylvaniaPlumbing in Pennsylvania
- TexasPlumbing in Texas
More states are coming as we finish the local research for each one.
Free tools, no email needed
If I sell for $X, what do I actually walk away with?
Net proceeds calculatorHeadline price in, cash at closing, later payments and an after-tax range out.
Is what I would get enough to retire on?
Retirement gap calculatorCompare sale money and savings with what you spend each year, as a range.
Would my business run for a month without me?
Owner dependence testTen trade-specific questions buyers ask, scored, with what to fix first.
What costs can I add back to my profit?
Add-back finderA checklist of common add-backs and how much of each a buyer is likely to accept.
Questions owners ask
Does my master plumber license transfer when I sell?
Usually not. A master license is issued to you as a person, not to the company. The buyer needs a licensed master in place at closing, so the plan to replace you is what sells. That can be a second master on your payroll, you staying on as license holder for a year or two, or the buyer bringing its own qualifier. Rules differ by state, so check with your state board.
What do small plumbing companies actually sell for?
BizBuySell reports a median of 2.24x seller's discretionary earnings for plumbing businesses sold from 2021 to 2025, with the middle half between 1.66x and 3.15x. Larger companies with managers are priced on adjusted EBITDA, where the published plumbing deals we found sit around 6.25x with earnouts and seller notes.
Is a plumbing company with mostly builder work hard to sell?
It is harder. Most buyers today want repair, drain and replacement work. With half your revenue from builders, expect fewer offers and a lower multiple. Growing the service side for 2 to 3 years before you sell usually pays back more than it costs.
How far ahead should I start planning a sale?
Start at least 12 to 24 months ahead. The slow fixes are the license plan, a second in command and a year of clean monthly statements. None of them can be done in the weeks before a buyer starts asking questions.
Are you a business broker?
No. We do not list, market or negotiate the sale of any business, and we are not licensed to. We give you a free illustrative estimate and plain guides. If you ask, we can introduce you to an independent licensed broker.
See what your company could be worth
Answer about 20 quick questions and get a free, illustrative range, a readiness score and the things holding your number back. About 5 minutes. No phone number, no sales calls.
Start the free estimateWant to know what it asks first? Read how the plumbing company valuation calculator works.
About once a month
What trade businesses are selling for
A plain letter, usually once a month: what buyers are paying attention to, new guides and what changed in our numbers. No sales calls, and we never pass your address to a buyer or broker.