Sell a Plumbing Company in Fort Worth, TX

Plumbing Holds Its Value

Water heaters fail, slab leaks show up and drains back up whether rates are high or low. That is a big part of why buyers keep looking at plumbing companies in the Fort Worth area.

Still, two shops with the same revenue can sell for very different prices. The difference usually comes down to where the work comes from and who can keep doing it after you leave.

Service Work and Builder Work

The Fort Worth area has added a lot of new homes and commercial space, and many plumbing companies have grown on that builder work. It brings volume and keeps crews busy.

Buyers like it, but they price it with care. Builder work often pays on thinner margins, comes in bunches and can slow quickly when a few builders cut back.

Residential and commercial service is the part buyers pay up for. Repeat customers, emergency calls and water heater swaps tend to carry better margins and do not depend on one general contractor.

If you do both, split your numbers out by type of work for the last three years. Show revenue, gross margin and your top accounts in each, so a buyer can see the real picture fast.

The License Question

Plumbers in Texas are licensed by the Texas State Board of Plumbing Examiners. Under state law, a plumbing company works under a responsible master plumber who takes responsibility for the work.

If that master plumber is you, the buyer will want to know who takes over that role. Some buyers bring their own. Others need you to stay for a while, or look to a journeyman on your crew who is close to a master license.

Raise this with your broker at the start. It shapes who can buy your company and how long your transition period needs to be.

Records That Back Up Your Price

Buyers and their lenders want to see the numbers tie together. Gather these before you go to market:

• Three years of tax returns that match your profit and loss statements
• Job history from your dispatch software, by customer and type of work
• Builder and commercial contracts, with pricing and terms
• A list of trucks, jetters, cameras and other major equipment
• Warranty claims and callbacks over the last few years

Callbacks matter more than most owners expect. A low rate tells a buyer your crews do the job right the first time.

Your Plumbers Are Part of the Deal

Licensed plumbers are hard to hire in North Texas, and a buyer knows it. A crew with long tenure can be worth as much as the customer list.

Write down each plumber's license level, years with you and pay. Keep the sale quiet until a buyer is close, then plan with your broker how and when to tell the team.

What the Sale Will Cost You

Most brokers are paid only when the deal closes. BizQuest puts typical fees between 8% and 15% for companies selling for $1 million or less. Our guide on what business brokers charge goes into more detail.

A good broker should more than cover that fee by bringing in several buyers and pushing for better terms, like more cash at closing and a shorter seller note.

Getting Started

Want to know what your plumbing company could sell for? Use the free valuation form or call (817) 555-0142. It is private and there is no obligation.

If your crews handle heating and cooling too, read about how to sell an HVAC company.