Plumbing industry insight

searcher profile

May 30, 2024

by a searcher from INSEAD in Los Angeles, CA, USA

Currently looking at a residential plumbing business doing about 60% construction/installation work and 40% service. Seller currently not doing any marketing at all. Ideally would like the business to have larger service work due to better cash conversion cycle.

How feasible and difficult is it to shift the focus of a plumbing company such as this one? What would be the key differences in skill set, equipment, sales channel, tech stack, or other things that I should be looking at?

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Reply by a searcher
from Purdue University in Overland Park, KS, USA
Hey Erwin! Curious to see how this worked out for you. I'm also looking at civil / structural / plumbing / HVAC / electrical construction businesses to acquire. Specifically looking at businesses local to me. Data Center market is booming right now so I'm looking to pivot any businesses I acquire into the data center construction space which would leverage my background in the industry.
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Reply by an intermediary
from Wesleyan University in Philadelphia, PA, USA
Hi Erwin, I have brokered insurance for plumbing/HVAC rollups. One of the issues that often catches people off guard is that these types of businesses may not offer employee medical benefits and then grow to a size where it is required of them. I am also a Wesleyan person :)
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