Is the Plumbing Sector a good industry to consolidate?
June 23, 2024
by a searcher
in Dallas, TX, USA
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by a searcher
from University of Pennsylvania
in Portland, OR, USA
Yes. If you have a time machine and can start your roll-up in###-###-#### That sounds snarky, but the reality is any home services business of size is well aware of roll-up strategies and has either sold or intentionally chosen not to. Those who want to exit expect PE-paid multiples, not traditional searcher terms. I own a plumbing shop and am involved in my local trade association where this is discussed all the time.
I still believe this is a great trade and worth exploring for an acquisition, just don't expect to come in and scoop up sleepy, unsuspecting players.
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by a searcher
from Columbia University
in Jacksonville, FL, USA
Agreed with ^redacted, this is an excellent sector, but is really picked over. I bid 3.75x an 800K EBITDA business last year and I came in at 60% of the winning bid. The winner had acquired more than 80 plumbing businesses in their roll-up. I would go small, off-market and try to grow organically. If you are a good operator and have a good sales department, you can kill it in a growing area. (But, I defer to Doug).
from University of Pennsylvania in Portland, OR, USA
I still believe this is a great trade and worth exploring for an acquisition, just don't expect to come in and scoop up sleepy, unsuspecting players.
from Columbia University in Jacksonville, FL, USA