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Plumbing business Sale-Prep Checklist

Licenses, documents and fixes buyers look for when you sell a plumbing business

Know your number

[ ] Recast earnings to SDE (and adjusted EBITDA if above about $1M of earnings)
[ ] Run the plumbing business valuation calculator and save the brief
[ ] Estimate after-tax proceeds under asset vs stock sale

Licenses and transfer issues for plumbing businesses

Done	Issue	What to know
[ ]	State contractor license	Usually tied to the entity and a qualifying individual. In California a license cannot be transferred to a new entity; a new owner or entity applies for its own license, posts new bonds and shows workers' comp coverage.
[ ]	Qualifier / master license holder	If you are the qualifier (RMO/RME, master plumber or electrician), the license qualification leaves when you do. The buyer needs a qualified person in place before closing, or you agree to stay on for a transition.
[ ]	Backflow, gas and medical-gas certifications	Specialty certifications are personal to the technician. Inventory who holds which credential before a buyer asks.

Documents buyers will ask for

[ ] 3 years of financials
[ ] Revenue by job type (service, drain/sewer, water heaters, new construction)
[ ] Service agreement count and terms
[ ] Technician roster and licenses
[ ] Vehicle and equipment list
[ ] Top customer list and concentration

Fix what buyers discount

[ ] Owner dependence: document processes, delegate selling and scheduling, cut your hours in the work
[ ] Customer concentration: no single customer above about 15% of revenue
[ ] Recurring revenue: convert one-off customers to agreements or plans
[ ] Clean books: separate personal expenses, reconcile monthly, keep 3 years of tax returns ready

Deal structure notes

SBA-financed individual buyers are common for smaller shops; seller notes must be on full standby to count toward the SBA equity injection. Platforms pay cash plus rollover.

Timeline

Plan for 6-10 months after going to market for a Main Street sale (IBBA Market Pulse Q2 2026).

Rules vary by state; confirm licensing and transfer requirements with counsel. General information, not legal or tax advice.

Free template from TradeExit Guide. Edit freely for your business.