Hamptons Luxury Plumbing Contractor, Suffolk County NY

$4.1M

Revenue

$1.3M

SDE

4.5x

Multiple

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Full Editorial Writeup

This is a licensed luxury plumbing contractor operating in the Hamptons and the broader East End of Long Island, one of the most affluent and supply-constrained residential markets in the country. The business serves high-end residential construction and renovation projects, working through long-standing relationships with premier custom home builders. It reported roughly $4.1M in adjusted revenue and $1.325M of adjusted EBITDA in 2025, a 32% EBITDA margin, on the back of an approximate 36% revenue CAGR since 2020.

The model is asset-light with only $100k of FF&E, a leased 1,000 SF shop, and nine full-time non-union employees. The core value here is scarcity: licensing is hard to get, the client relationships are entrenched, and the geography is protected by wealth density and regulatory tailwinds. Suffolk County septic upgrade mandates plus continued East End residential investment keep the project pipeline full.

This is being marketed as a partnership rather than a clean exit. The owner wants to retain meaningful equity, stay on in a salaried operating role, and hold the license during transition. That framing matters for structure and for buyers who need a clean walk-away, but it is attractive for a strategic consolidator wanting an anchor platform in a premium trade market.

Why we like it

Earnings quality is strong for the trade: a 32% adjusted EBITDA margin on $4.1M revenue in an asset-light model with only $100k of FF&E throws off real cash without heavy reinvestment. The 36% revenue CAGR since 2020 shows genuine demand momentum, not a one-year bump, though buyers should confirm how much is price versus volume in a hot market.
The moat is scarcity of licensing plus entrenched builder relationships in a geographically protected, ultra-affluent enclave. Master plumbing licenses are hard to obtain and the incumbent has the relationships with premier custom builders, which is exactly the kind of relationship capital that keeps competitors out.
Market tailwinds are unusually concrete here. Continued Hamptons luxury residential investment plus Suffolk County septic upgrade mandates create a regulatory-driven demand floor, meaning even discretionary renovation slowdowns are partially offset by required compliance work.
Operator advantage exists for a consolidator: this is a clean anchor platform to add licensed crews, geographic density, complementary trades, and recurring service contracts. The owner rolling equity and staying on de-risks the license transition, which is the single biggest execution risk in acquiring a licensed trade business.

How to improve it

Build a recurring service and maintenance business on top of the project work. These are high-value homes with owners who will happily pay retainers for priority service, seasonal winterization, and annual system checks, converting one-time project revenue into predictable, higher-multiple recurring revenue.
Add licensed crews to break the capacity ceiling. Revenue is capped by nine employees and available licensed labor, so aggressively recruiting and sponsoring apprentices toward licensure directly expands billable throughput in a supply-constrained market where demand exceeds capacity.
Lean into the Suffolk County septic mandate as a dedicated service line. Package compliant septic and drainage upgrades as a productized offering with fixed scopes and marketing to homeowners facing the regulation, turning a legal requirement into a repeatable, high-margin revenue stream.
Formalize pricing and project management systems. In a market this affluent, most contractors underprice and leak margin on change orders; implementing disciplined estimating, milestone billing, and change-order capture can lift the 32% margin meaningfully without adding a single crew.
Execute tuck-in acquisitions of complementary trades. Bolting on electrical, HVAC, or specialty finish trades lets the platform sell integrated service to the same builders and homeowners, increasing wallet share and creating a one-call solution that deepens the moat.
Reduce owner and license dependency during the transition window. Use the owner's committed involvement to systematically transfer relationships, obtain a second qualified licensee on staff, and document workflows so the business does not collapse if the founder eventually fully departs.

Diligence notes

Understand the deal structure carefully. This is marketed as a partner buy-in with the owner retaining meaningful equity and staying salaried, not a clean 100% acquisition, so clarify exactly what stake is for sale, control provisions, and whether the $6M ask reflects full ownership or a partial interest.
Verify the license situation in detail. The owner will retain the license during transition where legally permissible, which is a red flag for continuity; confirm New York and Suffolk County licensing rules, whether the business can operate under a qualifier, and the realistic path to independent licensure.
Scrutinize customer and builder concentration. Revenue leans on relationships with premier builders, so quantify how much comes from the top three to five accounts and whether those relationships travel with the business or with the owner personally.
Confirm the 36% CAGR and margin are durable, not cyclical peak. Hamptons construction rides a wave of luxury real estate activity; stress-test what happens to volume and pricing in a housing slowdown and separate mandate-driven septic work from discretionary renovation demand.
Examine the related-party shop lease. The facility is leased from an owner-related party at $3,500 per month, so verify the rent is at market, review the lease term and renewal rights, and ensure the arrangement survives the transaction without the owner using it as leverage.
Reconcile adjusted EBITDA to actual financials. The $1.325M is described as adjusted; obtain the add-back schedule, confirm owner compensation normalization, and validate that the 32% margin holds after accounting for a market-rate salary for whoever runs operations post-close.

Source

Originally listed on BizBuySell. View original listing →