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PLUMBING · Q1 2026 · 2.5×–4.5× SDE band held quarter-over-quarter (n=102, BizBuySell trailing-12-month closed deals)PLUMBING · Emergency revenue presented as steady-state SDE in 49% of deals · Variance 15%–40% in 71% of businessesPLUMBING · Service agreement recurring share above 35% in fewer than 20% of plumbing businesses · Primary HVAC-vs-plumbing multiple gapPLUMBING · Master plumber license held solely by exiting owner in 44% of deals · Permit-pull authority lost at closePLUMBING · Fleet capex reserve absent in 58% of deals · $15K–$25K per vehicle annually for 7+ year fleetsPLUMBING · Industry size $130B (IBISWorld 2024) · 3.6% CAGR 2020–2025PLUMBING · BLS 47-2152 median wage $61,550 (May 2024) · Master plumber loaded $85K–$130K typicalPLUMBING · EPA LCRI finalized Oct 2024 · 10-year mandate to replace lead service lines · Structural demand tailwindPLUMBING · Apex Service Partners (107 brands) · Wrench Group ($3B+ revenue) · Authority Brands · Chemed/Roto-Rooter lead consolidationPLUMBING · DSCR below 1.25× after owner-master normalization in 36% of deals · Owner replacement at $85K+ loadedJAPAN · 管工事業 under Construction Business Act · 管工事施工管理技士 1級/2級 · 1.8×–3.0× EBITDA typicalMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=102 SMB transactionsPLUMBING · Q1 2026 · 2.5×–4.5× SDE band held quarter-over-quarter (n=102, BizBuySell trailing-12-month closed deals)PLUMBING · Emergency revenue presented as steady-state SDE in 49% of deals · Variance 15%–40% in 71% of businessesPLUMBING · Service agreement recurring share above 35% in fewer than 20% of plumbing businesses · Primary HVAC-vs-plumbing multiple gapPLUMBING · Master plumber license held solely by exiting owner in 44% of deals · Permit-pull authority lost at closePLUMBING · Fleet capex reserve absent in 58% of deals · $15K–$25K per vehicle annually for 7+ year fleetsPLUMBING · Industry size $130B (IBISWorld 2024) · 3.6% CAGR 2020–2025PLUMBING · BLS 47-2152 median wage $61,550 (May 2024) · Master plumber loaded $85K–$130K typicalPLUMBING · EPA LCRI finalized Oct 2024 · 10-year mandate to replace lead service lines · Structural demand tailwindPLUMBING · Apex Service Partners (107 brands) · Wrench Group ($3B+ revenue) · Authority Brands · Chemed/Roto-Rooter lead consolidationPLUMBING · DSCR below 1.25× after owner-master normalization in 36% of deals · Owner replacement at $85K+ loadedJAPAN · 管工事業 under Construction Business Act · 管工事施工管理技士 1級/2級 · 1.8×–3.0× EBITDA typicalMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=102 SMB transactions
Industry Intelligence · Plumbing · Q1 2026
Updated · 2026-05-02Refresh · QuarterlyAuthor · Avery Hastings, CPA

Plumbing business acquisitions sit in a 2.5×–4.5× SDE band. Top-of-band placement is structural — recurring service-agreement revenue, master-license depth across jurisdictions, and route-density economics.

Q1 2026 headline read
Quarterly · Updated 2026-05-02
PILLAR 01
Earnings Quality
49%
Q1 2026 baseline

of deals presented emergency call revenue as steady-state recurring SDE. Emergency volume is weather- and event-driven — not a recurring floor.

PILLAR 02
Pricing
2.5×–4.5×
→ Band held

Band stable. Service agreement recurring share is the primary multiple driver — deals above 35% recurring trade at the top third.

PILLAR 03
Fundability
#1
Q1 2026 baseline

SBA fall-through cause: owner-plumber normalization compressing DSCR. Owner running high-value jobs cannot be replaced at the headline salary add-back.

PILLAR 04
Transferability
44%
Q1 2026 baseline

of deals had master plumber license held solely by exiting owner. Cannot pull permits at close without documented license continuity plan.

This quarter in
Plumbing
Q1 2026 · Jan–Mar

Emergency call revenue is not a recurring floor — it is a measure of how aggressively a plumber markets 24/7 availability in a given area. In years with severe winters or aging housing stock events, emergency volume spikes. In mild years, it compresses. Presenting trailing-12 emergency revenue as the basis for SDE is the most common quality-of-earnings error in plumbing deals. Require a 3-year revenue segmentation (service agreements, scheduled service, emergency calls) before applying any multiple.

The permit-pull gap closes deals. In jurisdictions where permit authority requires a licensed master on the job site or named on the pull application, the exiting owner's departure creates an immediate operational gap. A buyer who assumes they can use the owner's license during a transition period while they hire a replacement master is creating unlicensed contracting liability. Verify the replacement path at LOI, not after.

Read the full Q1 2026 Atlas →
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  1. Q1 2026Emergency Revenue Volatility, Service Agreement Gap, and Permit-Pull AuthorityRead →
Methodology

Acquidex v1.0, §3.4 (Earnings Quality), §3.3 (Transferability), §5.1 (Add-Back Stripping per SBA SOP 50 10 8). Methodology paper forthcoming Q3 2026.

Sample

Window: 2025-05 → 2026-04 (trailing 12 months). BizBuySell closed-deal data, IBBA Market Pulse Q3–4 2025 and Q1 2026, Pratt's Stats SMB transaction database, Acquidex direct deal observations

Refresh

Quarterly. Last update: 2026-05-02. Atlas archive at /intel/plumbing/atlas.

Author

Avery Hastings, CPA. Tokyo-based; SMB and lower-middle-market acquisitions in the US and Japan.

Acquidex · Industry Intelligence · 2026
AQX-IR-PLB-2026Q1 · v1.0
Plumbing Acquisition Intelligence: Multiples Band, Atlas, Playbook, Scored Deals | Acquidex