Established Plumbing Company, Suffolk County NY

$500K

SDE

4.0x

Multiple

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Full Editorial Writeup

This is a well-established plumbing contractor operating in Suffolk County, New York, one of the densest and highest-cost residential and commercial markets in the country. The business runs on an experienced team, documented systems, and a loyal customer base that generates a consistent pipeline of work across a diversified client set. The listing frames it as a turnkey operation with a reputation built on quality workmanship, reliability, and professionalism over many years of operation.

At a $2,000,000 asking price against $500,000 of seller's discretionary earnings, the deal is priced at roughly 4x SDE and is flagged as SBA loan eligible. The real estate is noted as owned, though the listing does not specify whether it is included in the asking price, which is a critical unknown for the effective operating multiple. Revenue, year established, and margin detail are all undisclosed, so the buyer is underwriting on cash flow alone until the data room opens.

Plumbing is a textbook essential-service business: water heaters fail, pipes burst, and code-driven repairs happen regardless of the economic cycle. For an owner-operator or an existing contractor looking to bolt on a Long Island footprint, the appeal is durable demand, licensing barriers to entry, and the ability to layer in service agreements and higher-margin work on top of a proven base.

Why we like it

The business throws off $500,000 in SDE on what the listing calls a proven, consistent pipeline of work, and it is SBA loan eligible. At 4x, a buyer can put roughly 10 to 15 percent down under a 7(a) loan and still cover debt service comfortably out of existing cash flow.
Plumbing is one of the most recession-resistant trades there is: leaks, clogs, and failed water heaters are non-negotiable spends, not deferrable discretionary purchases. That demand floor protects the earnings base through downturns and gives the debt a durable coverage cushion.
Suffolk County is a dense, high-income Long Island market with an aging housing stock that constantly generates repair and replacement work. Combined with New York plumbing licensing requirements, the local density and regulatory barrier limit how many low-cost competitors can flood in.
The listing emphasizes an experienced team, established systems, and infrastructure already in place, which means the business is not fully dependent on the owner swinging a wrench. That operational foundation is exactly what makes a clean transition and continued cash flow believable for a non-technical buyer.

How to improve it

Stand up or expand a recurring service agreement program covering annual inspections, water heater maintenance, and priority dispatch. Recurring contracts smooth revenue, lift retention, and can add a meaningful multiple to the business at a future exit.
Implement or tighten a modern field service platform (dispatch, scheduling, call tracking, and flat-rate pricing) if not already in place. Better utilization and call booking rates alone can add points of margin without any new customer acquisition.
Layer in high-ticket replacement categories like water heaters, water treatment, and sewer line work with financing options at the point of sale. These jobs carry strong margins and financing lifts average ticket and close rates on major repairs.
Invest in local digital lead generation: Google Local Services ads, review generation, and a booking-ready website targeting Suffolk County zip codes. Emergency plumbing searches convert fast, and owning the top of local search compounds over time.
Build a clear apprentice-to-technician recruiting and training pipeline to solve the trade labor bottleneck that caps growth. In a licensed trade, controlling your labor supply is the difference between saying yes and turning away profitable work.
Cross-sell into adjacent trades or partner with local HVAC and electrical contractors for referral flow. The similar HVAC listing in the same county at the same price hints at obvious tuck-in or referral synergy for a buyer thinking about a multi-trade footprint.

Diligence notes

Get revenue and gross margin immediately, because SDE alone tells you nothing about the health underneath. A $500,000 SDE on $1.2M revenue is a very different, healthier business than the same SDE on $4M of revenue with thin margins.
Clarify whether the owned real estate is included in the $2,000,000 asking price or sold separately. If the building is in the price it inflates the operating multiple; if it is separate, understand the lease or purchase terms because occupancy cost hits go-forward earnings.
Quantify owner dependence: how much revenue and profit relies on the owner personally holding the master plumber license, key customer relationships, or field work. Confirm whether a qualifying licensed employee stays or whether the buyer must hold or hire the license in New York.
Analyze the customer and revenue mix between residential service, commercial contract, and new construction. New construction is cyclical and lumpy while service and repair is durable, so the recession resistance thesis hinges on how weighted the book is toward the latter.
Verify the SDE add-back schedule line by line and confirm the age, condition, and ownership of the truck fleet and equipment. Deferred vehicle replacement or add-backs that a new owner cannot actually eliminate would erode the real cash flow you are buying.
Confirm licensing, insurance, bonding, and any open warranty or lien liabilities on completed work. In a trade with code and permit exposure, undisclosed callbacks or an expiring license held by a departing owner can quietly torpedo the transition.

Source

Originally listed on BizBuySell. View original listing →