Where are plumbing valuations right now, and how does that compare to where they’ve been?

This is a question most owners never think to ask, but understanding where you are in the valuation cycle before you go to market is the difference between selling at the right time and selling at the wrong one.

Historically, plumbing businesses sold in the 2.5x to 5x EBITDA range. That was the market for decades, driven by a buyer pool that was largely local individuals and competitors without access to significant capital. Then private equity discovered the home services space. As PE groups and consolidators entered the market with deep capital reserves and aggressive acquisition strategies, competition for quality plumbing businesses intensified, and multiples climbed with it. In the years following COVID, when interest rates were near zero and capital was essentially free, valuations in plumbing pushed into the 5x to 12x range for well-run businesses. That environment was exceptional, and it reflected conditions that were never going to last indefinitely.

Today the market has settled into the 3x to 8x range. That’s still meaningfully above the historical baseline, and it’s still a genuinely strong environment for sellers. Private equity and consolidators remain active and buyer appetite for quality plumbing businesses is real. The fragmented nature of the industry continues to make well-run independent operators attractive acquisition targets. But the 10x and 12x multiples that were available when interest rates were at zero are largely gone for individual operators except for large highly profitable locations.

The honest message is this: the window you’re in right now is still a favorable one. But it is narrowing as interest rates remain elevated, the cost of capital for PE groups and consolidators increases, and that pressure eventually flows through to what they’re willing to pay for acquisitions. The market certainly will not collapse, but over time valuations are more likely to drift back toward historical norms than to recover to post-COVID peaks. Owners who are thinking about selling in the next two to three years are in a better position today than they may be if they wait.