What’s Your Plumbing Business Worth? Why Smart Tradies Plan Their Exit Before the Tools Wear Them Out

Leaking pipe

What’s Your Plumbing Business Worth? Why Smart Tradies Plan Their Exit Before the Tools Wear Them Out

If you’ve built a real plumbing business—not just a job for yourself—you’re already in rare company.

You’ve got a team. You’ve got steady work. Maybe you’ve even taken a few Fridays off without the whole place falling apart.

But here’s the million-dollar question:

What’s your business actually worth—and what would someone pay to take it off your hands?

The answer depends on a few key factors, and if you're like many successful tradies, getting off the tools might just be the smartest next step you ever make—not just for your back, but for your future bank balance.

Why Getting Off the Tools Unlocks Real Business Value

Let’s be honest—plumbing’s a young person’s game physically. You can only carry hot water units, crawl under subfloors, or smash out 3 bathrooms in a day for so long.

If you’re still on the tools full-time, the business walks out the door when you do. And buyers know it.

If you’ve stepped back—maybe running a crew, quoting jobs, managing client relationships—then you’re already moving into a leadership role. And that’s where the value lies. Buyers pay for businesses, not jobs.

The Multiples: What Plumbing Businesses Sell For

Here’s what we’re seeing in the Australian market, based on actual transactions of small and medium-sized plumbing businesses:

SDE-Based Multiples (for smaller owner-operated firms which is profit plus Seller Discretionary Earnings):

AU$250k–500k SDE: 1.8×–2.3×

AU$500k–1m SDE or EBITDA: 2.5×–3.0×

EBITDA-Based Multiples (for larger, systemised operations):

AU$1–2m EBITDA: 3.5×–4.5×

AU$2m–5m EBITDA (highly systemised or niche): 4.5×–5.5×

✅ Strong commercial contracts, recurring service revenue, and low reliance on the owner can push you up the range.

⛔ High client concentration, short leases, or a business that falls over when you take a holiday will pull you down.

What’s Holding Your Valuation Back?

Even profitable plumbing businesses get discounted if buyers spot these red flags:

You're still the face and backbone of the business

If you’re quoting, project managing, and unblocking drains—your buyer sees risk.

No recurring work

Businesses built on reactive work alone (e.g. emergency plumbing) struggle to attract buyers unless it’s contract-based or brand-dominant.

Too much revenue from one or two clients

Lose one, and the numbers change fast.

No systems or documentation

If everything lives in your head, you’ve got more of a job than a business.

Unfavourable lease or no premises security

Buyers want location certainty—especially if there’s a shopfront or yard.

Want Top Dollar? Start Acting Like You’ve Already Sold

Buyers pay more for plumbing businesses that:

Have techs that run jobs without hand-holding

Use software for job management, quoting and invoicing

Have documented processes, pricing, safety systems

Show consistent year-on-year earnings

Have a healthy split between new installs, maintenance, and service

Show owner flexibility (i.e. you can step away without chaos)

Plan Your Exit 12 Months Ahead—Minimum

Most plumbing business sales take 7–13 months from go to whoa. That includes time for:

Broker engagement or DIY prep

Financial clean-up (yes, that includes personal expenses running through the business)

Marketing to buyers

Due diligence

Finance approvals (often slow, especially below $5m)

Legal wrangling

You want to be in control of the sale—not limping into it because your body’s had enough or a contract didn’t renew.

Final Thought: The Best Exit Is One You’re Ready For

If you’ve built something real—crews, contracts, a reputation—you owe it to yourself to extract the value, not just the wages.

Selling a plumbing business isn’t about giving up—it’s about cashing in. Whether you’re 5 years away or ready next year, the earlier you plan, the more you’ll walk away with.