Plumbing Business for Sale
Finding a plumbing business for sale is the first step in the journey. A few things before we dig in-
- We don’t sell plumbing businesses
- We are not plumbing business brokers
- We don’t get paid by anyone or anything related to the business of marketing or selling businesses
- Finding the right business to meet your acquisition goals will take time, work, and patience
We are 100% unbiased in everything we do. That’s why you should work with us.
Most businesses that are for sale are listed by a business broker. A business broker is basically a real estate agent for selling businesses. The primary function of a business broker is to market the business (find a buyer). Business brokers work for the seller, get paid by the seller, and protect the sellers interest.
How to find business for sale:
Ask around- Talk to your banker, your accountant, and account managers at supply houses. Often these people become aware of businesses that are for sale before they hit the market. Account managers at plumbing & HVAC suppliers have an excellent pulse on what businesses are thriving, who is not, and who is ready to retire. If you handle this correctly you may find a great opportunity before a broker gets their hands on it.
The internet- You’ll find that, just like searching for a home, brokers use the internet to list plumbing, HVAC, electrical and other home service businesses for sale. Below are a few of the website resources posting plumbing businesses for sale. If you’re interested in an HVAC, or Electrical business for sale, simply change the search criteria once in the listing website.
Evaluating plumbing business listings-
Identify potential targets
Business listings are generally made up of the following information:
- Catchy title
- General description of the business
- General information about the business (year founded, number of employees, etc.)
- Approximate financial information (gross revenue, EBITA, FF&E, inventory, real estate)
- Brief Details of the deal (is real-estate included in asking price, owner financing available, etc.)
You’ll notice many of the listings on these sites will be similar. Remember a business broker is only as good as his or her ability to find a buyer. They are marketers, write catchy headlines and make the business sound as good as they can without saying too much. They will go over the top pointing out how good the business is, how great the market is, how affluent the customers are, how easy it will be to grow the business, how easy it is to run, how profitable it is and will minimize any negatives about the business. Like the reason it’s for sale. Instead of saying “this owner is fed up with not making any money” they say something like “owner is pursuing other business interests”. You get the picture.
Before you start searching for your diamond in the rough, learn more about the specific steps in: How to buy a plumbing company (link)