Plumbing companies sell on repeatable service revenue and a crew that stays. Both can be improved deliberately in a year, and both change the multiple rather than just the earnings, which is why preparation returns more than negotiation in this trade.
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Split the revenue and improve the durable half
Report service and repair separately from new construction and from large replacement jobs. Service is higher margin, more repeatable and priced better. Converting one off customers into maintenance agreements and recording renewal rates properly is the highest return work available before a sale.
Take yourself out of the critical path
If you estimate, sell and hold the license, the business does not obviously survive your departure. A named service manager, a documented estimating method, technicians who deal with customers directly and a plan for the license all reduce that discount. Each takes months, which is why this starts a year out.
What diligence looks at
Job costing by type, technician turnover and pay structure, the vehicle fleet's age and finance, callback and warranty history, and any open disputes. Buyers in this trade are increasingly funded platforms with a checklist, and a business that answers the checklist in a week rather than a month keeps its price.
Other questions people ask
Who is buying plumbing companies?
Local competitors, regional trades platforms backed by funds, and individual buyers with lending behind them. Platforms usually pay more and ask for more in diligence.
Does it matter that my license is personal?
Yes. A buyer needs a licensed individual from day one, so either their own or a written commitment from you. It is a common cause of delay.
How long should preparation take?
A year if you are improving the service base and reducing owner dependence. Three months if the records are already clean and the business runs without you.