Plumbing Multiples (Atlanta)

May 22, 2024
by a searcher from Kennesaw State University - Coles College of Business in Atlanta, GA, USA
What EBITDA multiples are you seeing for plumbing? We've been in conversations with a local plumbing shop here in GA. 50/50 commercial/resi. They do ~$5.5M in revs. I see that industry average Net Margins are 15% - 20% (correct me if that's wrong). Their margins are lower due to how they like to run the business (they have some bloat).
I pulled some comps and see EBITDA multiples from###-###-#### 25x. Is that what others are seeing?
from University of California, Berkeley in San Francisco Bay Area, CA, USA
from Simon Fraser University in Port Coquitlam, BC, Canada
The valuation depends a lot of where the revenue is coming from. Is it service work or project work? Understand what they mean by commercial? Is it new built for small single family developers, or complex bid-build projects? A###-###-#### mix might not be the best, as residential plumbing companies operate very differently from the commercial ones.