Is private equity rolling up plumbing companies?

Yes, plumbing is being consolidated alongside HVAC, electrical, and other essential home-services trades. Private equity likes the profile: demand is non-discretionary, the market is fragmented across owner-operated shops, and service agreements plus emergency work create steady, recurring revenue.

Established plumbing companies typically sell for roughly 3.5x-6.5x EBITDA, or about 2.0x-4.0x SDE for smaller owner-operated shops. Value rises with recurring service agreements, a repair-and-service mix over lower-margin new construction, profitable commercial contracts, technician retention, and a business that runs without the owner. Concentration in a few customers or builders pulls it down.

Deal structure typically runs 60-80% cash at close, with the rest as equity rollover, a seller note, or an earnout. Owners are often asked to stay through a transition, and rolled equity offers a potential second payout when the platform is sold.

DealSeam is not a traditional business broker; we introduce plumbing owners to qualified private equity and roll-up buyers where there is a fit, with the buyer paying our success fee so sellers pay nothing. We never guarantee a buyer or a price.