73% of owners get a lower offer than expected. Learn the exact formula PE buyers use - then calculate your number for free.
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Forget what your accountant told you. Forget what your buddy sold his company for. PE buyers use one formula, and it comes down to three numbers.
Start with net profit. Add back your salary, interest, depreciation, amortization, and one-time expenses. That's your adjusted EBITDA - the number buyers actually care about.
Example: $600K net profit + $250K owner salary + $50K one-time legal fees = $900K adjusted EBITDA
Plumbing companies command a premium over many trades because of high demand, licensing barriers, and PE roll-up activity. But the multiple varies dramatically by size.
| Revenue Tier | EBITDA Multiple | Why |
|---|---|---|
| Under $1M | 2.0 - 3.0x | High owner dependency, limited scale |
| $1M - $3M | 3.0 - 4.5x | Growing, but still operator-led |
| $3M - $5M | 4.0 - 5.5x | PE-attractive size, management in place |
| $5M - $10M | 5.0 - 7.0x | Plumbing premium - hot PE roll-up target |
| $10M+ | 6.0 - 8.0x | Platform deals, strategic acquirer interest |
Source: GF Data, PitchBook, and publicly reported plumbing/mechanical transactions (2024-2025). Multiples reflect enterprise value to EBITDA.
This is where most plumbing company owners get surprised. Buyers stress-test everything that could go wrong after they write the check.
Takes 2 minutes. No sales call required.
Plumbing is one of the hottest sectors in private equity. Here's why - and what it means for your exit price.
PE firms are aggressively buying plumbing companies and rolling them into platforms. Wrench Group, Apex Service Partners, and others have acquired hundreds of home service businesses. Plumbing is a priority because of licensing barriers (hard to start from scratch), essential-service demand (pipes break regardless of the economy), and fragmented markets (thousands of small operators to consolidate).
This is driving multiples higher - but not for everyone. PE firms pay premium for companies that are already running like platforms: low owner dependency, recurring revenue, documented processes, and strong tech teams.
Owner dependency. If you still do estimates, close every big deal, and handle escalations - a buyer sees a business that dies when you leave. That's a 1.0-1.5x multiple discount.
No recurring revenue. All project-based work? Every January starts at $0? That's a 0.5-1.0x discount. Service agreements change this overnight.
Small tech team. 1-3 licensed technicians means the business can't absorb any turnover. Buyers discount for this because losing one tech could tank 30%+ of capacity.
You can spend $15,000 on a formal valuation. Or use our free calculator that runs the same math PE firms use - customized for plumbing companies.
Stop guessing. Plug your actual numbers into the calculator and see exactly where your plumbing company stands - with plumbing-specific multiples and adjustments.
Plumbing-specific multiples. Real PE buyer math. Your number in 2 minutes.
5,000+ service business owners have used this calculator
What happens next
You built something worth protecting. Make sure you get paid for it.
Frequently Asked Questions
How much is my plumbing business worth?
Plumbing business valuations are based on Adjusted EBITDA multiplied by an industry-specific multiple. Plumbing companies typically sell for 2-8x EBITDA depending on revenue size, recurring revenue, owner dependency, and customer concentration. Use our free calculator for a personalized estimate.
What EBITDA multiple do plumbing companies sell for?
Plumbing companies sell for 2-8x EBITDA. The exact multiple depends on recurring revenue percentage, commercial vs residential mix, licensed staff, and owner independence. Higher recurring revenue and reduced owner dependency generally command higher multiples.
How do I increase my plumbing business valuation before selling?
Three key steps: (1) Build recurring revenue through service agreements, (2) Reduce owner dependency by hiring and documenting, (3) Diversify your customer base. These changes can add 1-2x to your multiple, often translating to $500K+ in additional exit value. Read our free training for the full playbook.
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