Residential plumbing contractor, owner performs 35 hours/week, single master license
§ 01 · Observed
What was documented in diligence.
Owner billable-hour log: 35 hours per week at average $110/hour billable rate. Replacement labor normalization: $88/hour fully loaded — reduces SDE by $159,000 on $420,000 stated SDE. Single master plumber license held by owner; jurisdiction requires master on file for permit pulls. License continuity: no licensed journeyman on staff eligible for master exam within 12 months. Emergency revenue: $118,000 in trailing year vs. $74,000 average in prior 2 years — 59% above run-rate, driven by a burst pipe event at a commercial account. Service agreement renewal data: 78%, below top-of-band threshold.
§ 02 · Outcome
What happened.
Initial ask 3.8× stated SDE. After owner-labor normalization and emergency revenue restatement to run-rate, adjusted SDE reduced 44%. Repriced to 2.9× adjusted SDE. License continuity plan (hire journeyman, 9-month master exam path) required before credit approval. Closed at 2.9×.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Mid-band placement reflects the convergence of owner-technician concentration and single-license dependency — the two most common plumbing deal repricing triggers. Emergency revenue normalization provided a secondary SDE reduction. Consistent with the 2.7×–3.3× range for owner-operator plumbing businesses.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
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