Sell a Plumbing Business
How to Sell My Plumbing Business
Maybe you have inherited your plumbing business from a family member, or maybe you have painstakingly built it yourself from the ground up.
There are really only three choices for a current business owner: keep the business and run it until you die, pass the business on to a family member, or sell it.
For most people, there will no doubt come a time when you are ready to sell it. And because “selling my plumbing business” is not something you learn about in school, you might feel overwhelmed by the process. At this point, it is extremely important to use a plumbing business broker to help you understand how to sell plumbing business.
Consider all of the following if you want to make the most of your sale.
WHEN TO SELL
Choose the Right Time
When it comes to timing, there are three basic scenarios, and if you want to sell your plumbing business, you have to analyze all three carefully.
READY TO SELL
Just like the name implies, these are the people that would be happy to sell immediately and be out of the business in 6-12 months
SELL IT SOON
This group wants to be completely out of the business in 5 years, but is willing to sell a piece now and also keep their hand in the business
DOWN THE ROAD
This group has more of a long-term goal, and wants to sell their business in five years or more. Until then, they want to stay informed to set themselves up for success
Another consideration when you want to sell your plumbing business is to analyze your personal goals. Maybe you are ready to call it quits entirely, maybe you want the time and money to travel, or maybe you are ready to dip your hand into other investments or jobs. In each case, if you have ever said, “How do I sell my plumbing business?” you could definitely use some advice from a plumbing broker to make your dreams come true.
PERCEIVED VALUE FROM SELLING MY PLUMBING BUSINESS
Often, plumbing business owners look for certain markers when they are looking to sell a plumbing business. Maybe your business is on the upswing and you have some prospective buyers interested. Or maybe private equity buyers are looking for plumbing businesses to invest in. It is certainly in your best interest to keep your eye on the value of your business so that you can see it at the most profitable time.
CURRENT INDUSTRY AND ECONOMIC PATTERNS
When considering when to sell your plumbing business, look to the industry stalwarts to show you what is going on. Plumbers will always be in high demand, but the workforce is aging and young people are often steered to college rather than the trades. Also, retaining quality workers is also a challenge. Along with the increased cost of all materials, this can create higher costs and lower profits. When you consider what is going on in the industry, this gives you a better idea of what to expect.
Keeping your eye on the market can help you answer the question “Should I sell my plumbing business?” In today’s economy, larger companies are often interested in buying and integrating smaller plumbing businesses into their fold. This also lends itself to geographic growth. With many ongoing issues having to do with recessions, the supply chain, and inflation, you might want to sell your plumbing business earlier than you had originally planned.
LACK OF LEGACY
Many business owners who thought they would be passing down a family business are now asking themselves how to sell my plumbing business, because they do not have children that are interested in taking over the business. Even the most loyal employee is probably not equipped to handle the business if they do not have the link of the family name. And if you sell the plumbing business, you might actually be changing the lives of your employees for the better if they become part of a bigger business.
TYPES OF SALES
How To Sell A Plumbing Business
If you realize that you are interested in selling your plumbing business, there are basically two ways to do this: a full sale or a partial sale.
Just as you could imagine, there are pros and cons to each type of sale, and different responsibilities for the owner in each.
If you are interested in a cut-and-dried sale, then a full sale is for you. In this model, you sell 100% of the business at once, and a typical sale lasts around 6-9 months. You would then stay on for a transition period of 3 months to 2 years, and then you would be completely done with your business. If you want to sell plumbing business, compensation and responsibilities during this time will be clearly enumerated. If you are wondering how to sell your plumbing business immediately, this type of sale is for you.
A partial sale has you selling the majority of the company (generally 70-80%) but leaving the rest in equity ownership. For the next 2-5 years, you and your partner will work in tandem to grow and manage the business. This model is perfect if you want to save some money, but still keep working. Down the road, you can take a “second bite of the apple” when you sell the rest of your share.
WE’RE HERE TO HELP
For those people wondering what selling my plumbing business would entail, the experts at Brentwood Growth have you covered.
With your retirement and future at stake, trust our expertise when it comes time to sell your plumbing business. It is never too early to start when you want to sell your business for a profit.
Do You Know What Your Business is Worth?
Why Work With
Access to Buyers
Over 400 private equity firms and consolidators that are actively looking to purchase.
Ensure the sale of your business remains confidential to avoid disruptions for you.
More than 20 acquisitions with transactions from $80 million with an average of $4 million.
Learn the value of your business and receive support with pricing to the market.
As your mediator, we work with you and the buyers to make sure both parties are satisfied.
Lead by a team with 75+ years of experience. Our experience ensures a smooth experience.