Plumbing
Active
Add-On: TN Based / Commercial & Residential Plumbing / $444K EBITDA
Tennessee, United States
Asking Price-
Revenue$5,170,000
EBITDA$444,000
Cash Flow$444,000
Description
Add-On Opportunity: Chattanooga, TN Based / Commercial & Residential Plumbing / $444K Book EBITDA / Growing Service & Repair Business / $1.2M Contracted Backlog
Company Overview
Founded in 2011 and headquartered in the greater Chattanooga, Tennessee market, the Company is a full-service plumbing contractor serving commercial, institutional, and residential customers. Its operations span commercial construction and contract labor, as well as higher-margin residential and commercial service, repair, and small-project work.
The Company employs 46 people and operates from a company-owned facility with an owned equipment fleet, six full-time service vans, dedicated estimating capabilities, and an experienced management team. Long-standing general contractor relationships and an established regional brand drive repeat commercial awards and consistent inbound service demand.
The business has generated strong organic growth, with revenue increasing from approximately $4.1 million in FY2023 to $5.2 million in FY2025. Commercial construction provides customer relationships, backlog, and near-term revenue visibility, while the growing service division adds more recurring, predictable, and higher-margin revenue.
Key KPIs
- **FY2025 revenue:** $5.17 million
- **Revenue CAGR (FY2023-FY2025):** Approximately 13%
- **FY2025 gross profit:** $1.12 million
- **FY2025 gross margin:** 21.7%
- **FY2025 book EBITDA:** $444,000
- **FY2025 book EBITDA margin:** 8.6%
- **First-half 2026 revenue:** $2.51 million
- **Contracted backlog:** Approximately $1.2 million
- **Active commercial projects:** 26
- **Service division growth (FY2023-FY2025):** Approximately 35%
- **FY2025 revenue mix:** 70% commercial construction, 25% service, and 5% internal contract labor
- **Estimated customer mix:** 86% commercial and 14% residential
- **Employees:** 46
- **Full-time service vans:** 6
- **Service billing rate:** $175 per hour
- **Operating history:** Approximately 15 years
- **End markets served:** 8
Contracted backlog represented approximately 32% of FY2025 construction revenue and was diversified across 26 active projects and eight end markets. The Company’s transition from rented to owned equipment reduced monthly equipment costs from approximately $12,000-$16,000 to approximately $4,000, creating a structurally lower operating-cost base. Its company-owned facility and fleet also provide infrastructure to support additional volume without a proportional increase in overhead.
Strategic Fit
The Company represents an attractive add-on acquisition for a larger home-services, plumbing, or mechanical-services aggregator seeking to expand its presence in Tennessee. Its established operating footprint, experienced management team, commercial relationships, and growing service operation provide multiple opportunities for an existing platform to create value through improved pricing, technician utilization, centralized purchasing, enhanced marketing, and recurring maintenance programs.
The business could also serve as a compelling new platform for an investor entering the plumbing and essential-services sector. It offers immediate scale, a recognized local brand, a diversified customer base, owned infrastructure, and an established team capable of supporting future organic growth and regional add-on acquisitions. The founder’s willingness to remain involved following a transaction further supports operational continuity and an orderly ownership transition.
Financial information is management-provided, unaudited, and subject to confirmatory diligence and a Quality of Earnings review. First-half 2026 EBITDA is not directly comparable with full-year results because it excludes year-end depreciation.
Business listed by
The Advisory IB
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