Tony Gee • April 21, 2021

How To Sell Your Plumbing Business

Are you interested in selling your plumbing business?


If so, it is a good idea to consider your goals and objectives for the sale – the reasons why you’re selling your business and the value you want to achieve. Selling a plumbing business for top dollar is a complex venture that requires professional financial and legal input from seasoned professionals who understand the unique nature of a business transaction.


A key objective to consider is your financial performance and how that translates to enterprise value.  Why is that important?  As they say, timing is everything, and while you may be ready to sell your business, your business may not be ready to take to market.  For example, you need to ask yourself if your revenues are growing year-over-year and whether that growth is profitable.  You need to look at your operating expenses and spend time getting “lean and mean.”  You see, the more prepared you are, the more likely you’re to maximize profits.


It is recommended to get your plumbing business ready for sale a year or two in advance before the actual sale takes place. This will enable you to get things in order and command the highest price possible and showcase your business is an attractive option for buyers. If you are wondering how to sell your plumbing company, but don’t know where to begin, here are a few steps to help you navigate the sales process and make the most of your time.


Step 1: Prepare Your Business for Sale


If you’ve decided to sell your plumbing business for whatever reason, you can’t just hang up a “for sale” sign and wait for offers to come rolling in. Selling for the right price takes time and preparation. The more time you take to properly assess, prepare and market your plumbing business for sale, the higher the odds of increasing the transaction’s success. Here are a few things you can do to prepare your plumbing business for sale:


Get your company’s financials in good shape – both accounting practices and policies and prepare the necessary financial statements. It is advisable you show positive performance, be it sales growth, backlog, gross margins and other metrics used in the plumbing industry. Prepare 2-3 years of tax returns and financial statements. Be organized :)


List and price all your plumbing business’s tangible and intangible assets.


Organize your legal paperwork. Review your permits, licensing agreements, incorporation papers, vendor and customer contractors. Make sure you have them readily available, current and in order.


Fine tune your daily operations. , creating instruction manuals and checklists by role so everyone understands what they do and how they do it.  I’m not saying document everything under the sun – focus on the key processes, policies and procedures that make the most impact. Remember, it is your company’s systems and processes that have value , allowing you to turn the keys over to a buyer with a system they can follow that makes you unique and better than your competition. Key areas to focus on:


Do you have an effective sales and marketing sales process?


-How are leads generated and moved to sales?


 Is your product pipeline effective, efficient and well-streamlined?


-Will the new owner need to hire additional workers, buy new equipment or train your existing workforce?


How effective is your second-tier management?


-Do you micro-manage your managers and employees?


-Do you have a good management structure involving people who can make critical business decisions?


-Do you delegate authority and approvals to your team?


-Do you cross-train your managers and employees to help eliminate gaps and downtime when team members are on vacation or indisposed?


-Do you have undisciplined or unmotivated workers?


Make sure your pricing and marketing strategies are effective, measurable and repeatable. Having a marketing program in place that consistently delivers leads and has proven successful for several years, allows the new owner to know a radical shift in sales performance will not be needed.


Your team- from the dispatchers to the plumbers- must be friendly, well trained and happy.  Inform them in advance that you are planning to sell your company. Encourage them to work with the new owner.


Prepare a five-year business plan that the new owner can follow to improve their chances of success, especially if they are not plumbers themselves.


Step 2: Get a Professional Valuation


Next, you’ll want to determine the worth of your plumbing business to ensure you do not price it too high or too low. Valuing a plumbing company is not always a straightforward process. You should consider hiring a professional valuation firm to help you determine the real value of your company.  Enlisting the services of a professional also helps to bring credibility to the asking price. The appraiser will take into account everything from inventories and sales to debts and other business assets to come up with a realistic price.


While determining the value of your plumbing business is important, your asking price should be defendable when negotiating with the potential buyer. The best way to prove the validity of your plumbing business’s valuation is by maintaining clean and accurate financial records. Although some potential buyers discredit things like goodwill and market share, they can’t argue with your financial numbers, which makes your record keeping so important. Key financial documents that support your valuation include your income statement, cash flow statement and balance sheet, as well as your tax returns from the previous 2 – 3 years.


Step 3: Prepare For Your Exit


Potential buyers will want to know you plan to wind down your involvement in the company.  Experts recommend having an exit plan in place at least a year or two in advance. Having a good exit plan helps to get things in order including improving your customer base, financial records and sales. This also makes your plumbing business even more attractive to potential buyers.


A good exit strategy should have the following: a succession plan for the person taking over the daily operations, a clear understanding of the possible pitfalls and how to manage and correct them and a sense of how much you need to make from the sale in order to cover your finances. You also need to the take following into account:


a)  Who will be your successor?

b)  Do you want the new owner to keep your current staff?

c)  How are you going to incent your key employees to stay after the sale?

d) Are your insurance contracts and policies in good order?

e) Will there be a transition period, or are you planning to disappear the day the buyer hands you the check (not likely an option)?

f)  Will you notify your existing clients and leads of the change in ownership? What about other key stakeholders, like vendors, strategic partners, bankers, lawyers, business & health insurance brokers, your CPA and more?


The biggest mistake you can make when selling a plumbing business is not having a good exit strategy. If you want to get maximum value for your plumbing company, develop an exit plan now before an unforeseen situation forces you to sell.


Step 4: Hire a Professional Business Broker or M&A Advisor, depending on the size and value of your company


Hiring a professional business broker is the best way you can get the maximum value for your plumbing business and find you the ideal buyer. This is especially true if your business is in the small and lower middle markets, traditionally defined as having less than $1 million in net profits, or more technically, EBITDA (“earnings before interest, taxes, depreciation and amortization”).  If your business earns more than that, it’s advised to seek out an experienced Mergers & Acquisitions (“M&A”) advisor who will market your company to a different class of buyer.


In this discussion, we’ll focus on the strengths a business broker brings to you during the sales process.


An experienced business broker can help you with business valuation, negotiations and due diligence. They can list your plumbing company with various marketplaces to increase the number of potential buyers and get you the best deals. A professional business broker can also handle all negotiations on your behalf and help you find secure funding with a reliable financial institution.

Here are some of the critical roles played by a professional business broker:


a) Business Appraisal.


A professional broker can help you create an accurate appraisal of your plumbing business based on the sale of similar companies.


b) Prepare Prospectus.


A prospectus is a multi-page business document that describes your plumbing business to prospective buyers. The document usually has 15 to 30 pages and contains all the essential details about your plumbing company.


c) Marketing.


A broker markets your offering to potential buyers and inventors on their database.


d) Manage Inquiries, Emails and Phones.


A business broker will manage all the buyers inquiries about your business. They will also help you to choose the best offer from all the submitted letters of intent. A letter of intent is a document that contains the declaration of the intention of the buyer about the offer and deal terms to purchase your plumbing company.


e) Due Diligence.


A broker will perform a detailed investigation of all facts, numbers and metrics about your plumbing business before signing a contractor. This is done to ensure that all the information you’ve provided is correct. The broker will ensure everything is moving smoothly and will respond to your buyers’ ongoing questions about your data and accounting.


f) Verify Final Offer.


When a buyer makes a final offer to buy your plumbing company, your broker will perform a detailed review and negotiate until you are 100% satisfied with the outcome.



Selling a plumbing business on your own risks exposing your plans to your competitors. Leveraging the expertise of a professional business broker helps to maintain confidentiality and protects your information from buyers without first signing a disclosure agreement. A broker saves a significant amount of time and helps you sell for profit.


AI SEO For Plumbers

The Strictly Plumbers Guide to AEO & GEO: Why Your Business Can't Afford to Wait

By Tony Gee • March 10, 2026
Answer Engine Optimization (AEO) and Generative Engine Optimization (GEO), and show you why immediate implementation is critical for your company's survival and growth.

PlumbLine: Revolutionizing Plumbing Businesses One Call At A Time

By Tony Gee • March 6, 2024
In the competitive world of plumbing services, standing out and offering unparalleled customer service can make all the difference. That's where PlumbLine comes in, a game-changing answering service designed specifically for plumbing companies. What sets PlumbLine apart is its innovative pricing model: charging exclusively per booked call. This approach not only ensures cost-effectiveness but also aligns directly with the success of your plumbing business. Tailored for Your Success Understanding the unique challenges plumbing companies face, PlumbLine offers a bespoke solution that caters specifically to the needs of this industry. Our service ensures that every call is answered with professionalism and expertise, acting as an extension of your own business. The per booked call model means you only pay for results, making it a risk-free investment in your company's growth and customer satisfaction. One of the standout features of our service is the ability to book appointments directly into your company's scheduling software. This seamless integration ensures that the booking process is as efficient and error-free as possible, further enhancing the customer experience and streamlining your operations. How PlumbLine Works PlumbLine employs a team of highly trained professionals 24/7/265, who understand the nuances of the plumbing industry. When a potential client calls, our representatives handle the call with the same care and knowledge as if they were your own employees. They are trained to not only answer general inquiries but also to effectively book appointments, ensuring that potential leads turn into actual business. This efficiency boosts your conversion rate and, ultimately, your bottom line. Cost-Effective and Efficient By charging only for booked calls, PlumbLine ensures that your marketing dollars are spent wisely. This pricing strategy eliminates the concern of paying for services that don't directly contribute to your revenue. It's a straightforward, transparent approach that benefits your business by directly linking our success to yours. This model encourages us to work harder for your business, as our growth is directly tied to your success. Benefits Beyond Savings Aside from the obvious financial benefits, partnering with PlumbLine brings numerous advantages to your plumbing business: **24/7 Availability:** Missed calls are missed opportunities. PlumbLine ensures you're always available to your customers, capturing leads even outside of regular business hours. **Professional Representation:** First impressions matter. Our team handles each call with the professionalism and courtesy your customers expect. **Direct Booking into Your Scheduling Software:** Streamline your appointment setting process with our direct booking feature, ensuring efficient scheduling and customer satisfaction. **Increased Conversion Rates:** With expert handling of inquiries and appointment bookings, you'll see a significant increase in conversion rates, driving more business your way. Join the PlumbLine Family  PlumbLine is more than just an answering service; it's a partner in your business's growth. Our unique pay-per-booked-call model, combined with our industry-specific expertise and direct booking capabilities, makes us the ideal choice for plumbing companies looking to enhance their customer service and increase their revenue. With PlumbLine, you're not just hiring an answering service; you're investing in a tailored solution that grows with your business. Contact us today to learn more about how we can help elevate your plumbing business to new heights.

How To Implement KPI’s Into Your Plumbing Business

By Tony Gee • January 19, 2024
How To Implement KPI’s Into Your Plumbing Business Are you feeling overwhelmed trying to boost your plumbing business's efficiency? Key Performance Indicators (KPIs) might be the solution you need. As a plumbing business owner, understanding and leveraging KPIs can significantly transform your operations. KPIs are insightful data points that offer an objective outlook on your plumbing business's performance, spotlighting areas that need enhancement. They serve as your guiding beacon towards achieving your business goals. By implementing KPIs, you can join the 60% of plumbing businesses that have seen a boost in their efficiency. But how can you accomplish this? In this blog, we’ll cover the various types of KPIs you should integrate into your plumbing business. Marketing KPIs A crucial aspect of running your plumbing business involves keeping an eye on your marketing efforts . Specifically, marketing Key Performance Indicators (KPIs) offer insights into the effectiveness of your marketing strategies and are critical in making informed business decisions. Here are some marketing KPIs that you should consider implementing in your plumbing business: Cost Per Impression: This KPI measures the cost incurred for every individual who sees your advertisement. It helps gauge the financial efficiency of your marketing campaigns and assists in budget optimization. Cost Per Click: This is the cost an advertiser pays each time a user clicks their online ad. It's an essential KPI for digital marketing as it helps assess the cost-effectiveness of your campaigns in driving user engagement. Cost Per Lead: This KPI quantifies the cost of acquiring a prospective customer. It's crucial for understanding the effectiveness of your lead generation efforts, helping to identify the most cost-effective marketing channels. Cost Per Conversion: Cost per Conversion or Cost per Acquisition, measures the cost associated with converting a lead into a paying customer. This KPI is crucial as it directly relates to the profitability of your marketing efforts. Acquisition Costs: This encompasses all costs incurred to acquire a new customer, from marketing and sales expenses to any additional costs associated with onboarding. It’s crucial to track this KPI to ensure the profitability of your customer acquisition strategies. Marketing KPIs serve as critical tools for evaluating the success of your marketing strategies, providing tangible metrics to assess cost-effectiveness, customer acquisition, and overall profitability. By regularly monitoring and analyzing these KPIs, you can make data-driven decisions that optimize your plumber marketing efforts, improve your lead generation, and ultimately increase your customer base. Dispatch KPIs Effective management of your dispatch operations is another crucial area where Key Performance Indicators (KPIs) can make a transformative impact on your plumbing business. Monitoring dispatch KPIs helps to manage your resources efficiently, ensuring jobs are completed promptly while minimizing costs. Here are some important dispatch KPIs to consider for your plumbing business: Total Daily Cost: This KPI calculates the total expenditure of your dispatch operations in a day. It's essential for tracking your daily operational costs and identifying opportunities for cost reduction. Type Of Plumbing Calls With Dispatch: This KPI categorizes the type of plumbing calls received and dispatched. It provides valuable insights into the most common issues your business is called to address, allowing for targeted training and resource allocation. Plumbing Appointments: This KPI tracks the number of plumbing appointments scheduled in a period. It provides a snapshot of your business activity level, helping to manage resources effectively and plan for peak periods. Cost Per Conversion/Scheduled Appointments: This KPI measures the cost incurred for every appointment scheduled through dispatch. It helps assess the cost-effectiveness of your dispatch operations and is useful for optimizing scheduling and improving profitability. Cost Per Acquisition/Sales And Invoicing: This KPI gauges the cost of acquiring a customer through the dispatch system, from the initial call through to invoicing. It offers insights into the cost efficiency of your sales process and aids in identifying areas for improvement. Cancellation Rate: This KPI calculates the percentage of scheduled appointments that are canceled. A high cancellation rate may indicate issues with scheduling or customer service, making this an essential KPI for improving customer satisfaction and retaining business. Regular monitoring and analysis of these Dispatch KPIs will enable you to manage your dispatch operations effectively, leading to improved customer service, operational efficiency, and profitability. Sales KPIs In the realm of plumbing business, sales Key Performance Indicators (KPIs) provide in-depth insights into your business's profit-generating performance. They help you understand the effectiveness of your sales strategies , identify opportunities for improvement, and maximize your profitability. Let's delve into some of the crucial sales KPIs that your plumbing business should consider: Plumbers KPIs: This KPI tracks the performance of individual plumbers in your team. It can include measurements like the number of jobs completed, customer satisfaction rate, and the value of invoices generated. Monitoring these metrics can help identify star performers and areas where training may be needed. Leads Run Per Day: This KPI quantifies the number of potential customers or leads engaged in a day. It's crucial for understanding the effectiveness of your lead generation efforts and can help in planning and resource allocation. Estimates And Invoices: This KPI records the number of estimates provided and invoices issued. It provides insights into your business's sales activities, helping to track your conversion rates and measure the effectiveness of your sales process. Type Of Plumbing Job: This KPI categorizes the types of jobs your business handles, such as drains, water gas, water heaters, spot repairs to reroutes and repipes, and water line spot lines converted to a reroute or a repipe. This data can help you understand your market better and optimize resource allocation based on demand. Drain Cleaning Converted To Drain Repair Or Trenchless: This KPI measures the conversion rate of drain cleaning jobs to drain repair or trenchless jobs. A higher conversion rate indicates successful upselling, contributing to increased profitability. Water Filtration Systems Sold: This KPI tracks the number of water filtration systems sold over specific time periods (daily, weekly, etc.). It's a key indicator of your product sales performance and can help identify trends and plan for inventory management. Average Invoice And Monthly Sales: This KPI calculates the average value of your invoices and total monthly sales. It's crucial for tracking your revenue performance and identifying any trends or potential issues impacting profitability. By implementing these sales KPIs and regularly monitoring them, you can gain valuable insights into your sales operations. It can help you streamline your processes, improve decision making, and ultimately drive your plumbing business towards success. Growth KPIs For a progressive plumbing business, growth Key Performance Indicators (KPIs) are of paramount importance. They provide insights into the success of your growth strategies and the return on your investments. Here are some crucial growth KPIs you should incorporate: Average Invoice Marketing VS. ROI In Marketing: This KPI compares the average income generated from invoices against the return on investment in marketing. This metric offers substantial insights into the effectiveness of your marketing efforts and their contribution to your business income. Number Of Jobs by Plumbers Per Day/Month: This KPI tracks the productivity of your workforce by quantifying the number of jobs handled per day or month. It can help monitor individual performance, plan work schedules, and identify areas for improvement. New Hires: Counting the number of new hires shows the expansion of your team, which reflects your company's growth and the need to meet increased demand. Number Of Plumbers: Keeping track of the size of your team gives you insights into your operational capacity and helps in manpower planning. Overhead VS. Profit: This KPI calculates the proportion of your income that goes towards overhead costs and compares it to your profit. A lower overhead-to-profit ratio indicates healthier business performance. Gross Profit Margin: Calculating your gross profit margin as a percentage shows the proportion of your revenue that remains after subtracting the cost of goods sold (including materials and gasoline). This KPI is vital for understanding your financial health. Operational Costs: This KPI tracks costs related to daily business functioning, such as materials, gasoline, etc., helping maintain cost efficiency. Growth Rate Percentage Per Year: This KPI measures the annual percentage increase in your business, providing an overall sense of your company's growth and helping set future goals. Utilizing a competent Customer Relationship Management (CRM) system like Jobber or Housecall Pro can significantly simplify tracking these KPIs. These CRMs facilitate easy monitoring with just a click of a button. They are essential tools to help track job tags and leads, providing valuable insights to assist in growing your plumbing business. In conclusion, the implementation and diligent tracking of KPIs is an essential step to unlocking the potential of your plumbing business. Leveraging these metrics allows for improved strategic decision making, enhanced operational efficiency, increased profitability, and robust growth. However, navigating these KPIs can be challenging without expert guidance. Tony Gee is a trusted plumbing business coaching expert. With over 15 years of experience as a plumber and a proven track record of helping over 450 businesses flourish, Tony offers valuable insight and practical methods for KPI implementation. Don't miss this opportunity to turbocharge your plumbing business' growth. Schedule an appointment today to grow your plumbing business and make more money.