Metro NY Plumbing - Queens Plumbing & Heating Contractor

$3.8M

Revenue

$613K

SDE

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Full Editorial Writeup

This is a 32-year-old plumbing and heating contractor operating across the NYC boroughs out of Queens, built in 1994 and still serving the same client base it earned decades ago. The business runs a full-service model covering plumbing, heating, drain cleaning, and fire suppression, all backed by 24/7 emergency coverage, which is the kind of service mix that generates both scheduled and panic-driven demand. Revenue sits at roughly $3.84M with $613K in cash flow, a healthy 16% owner-earnings margin for a labor-heavy trades business.

The customer concentration story cuts both ways. The company services 200 corporate accounts and 250-300 private clients annually, with more than 90% of customers being long-standing relationships. The mix skews 95% residential and 5% commercial, anchored by high-end residential clients and major NYC property management firms, which is exactly the kind of repeat, referral-driven base that makes a trades business durable. There are no long-term contracts, so retention is earned on service quality rather than locked in on paper.

The real asset here is the team. 21 employees including highly skilled plumbers carrying OSHA certs, journeyman cards, and gas certifications, with an average tenure of 15 years. In a market where licensed plumbers are nearly impossible to hire and harder to keep, that bench is the moat. The sale includes 10 fully equipped service vehicles, tools, inventory, and office equipment, with the related real estate available separately.

Why we like it

Earnings quality is real for a trades business at this size. $613K in cash flow on $3.84M revenue is a clean 16% margin, supported by professional billing practices and a diversified base of 200 corporate accounts plus 250-300 private clients rather than dependence on one or two whales. Recurring emergency and maintenance work smooths the revenue curve across seasons.
The moat is the labor, not the brand. Average employee tenure of 15 years across 21 staff, with OSHA certs, journeyman cards, and gas certifications, is the single hardest thing to replicate in NYC plumbing right now. A buyer is acquiring a fully credentialed, license-compliant crew that would take years and a fortune to rebuild from scratch.
Demand is structurally non-discretionary and recession-resistant. Plumbing, heating, drain, and fire suppression are need-now services, and the 24/7 emergency coverage captures the highest-margin, least price-sensitive work. NYC's aging building stock and dense property management relationships guarantee a steady flow of repair and code-driven jobs regardless of the economy.
Customer stickiness is exceptional. More than 90% of customers are long-standing relationships, including major NYC property management firms that send repeat work across entire portfolios. That kind of relationship depth is the closest thing to recurring revenue you get in a no-contract services business.
Clear, fundable growth paths exist without reinventing the model. Management already flags expansion into Staten Island and under-served outer boroughs, a push for more commercial accounts, and work outside NYC. With one owner retiring and the operating team intact, the runway is execution, not turnaround.

How to improve it

Tilt the mix toward commercial within the first 90 days. At 95% residential and only 5% commercial, with existing relationships at major property management firms, there is obvious low-friction upside in converting those firms into facility-wide service agreements. Commercial work tends to be higher-ticket and more schedulable than one-off residential calls.
Convert no-contract relationships into recurring maintenance plans. The business currently has no long-term contracts, which is flexibility but also leaves money on the table. Rolling property management accounts onto annual preventive maintenance and inspection contracts would create predictable revenue and lift the multiple at the next sale.
Build a structured pricing and dispatch system around the 24/7 emergency line. Emergency calls are the highest-margin, least price-sensitive work, and most legacy trades shops underprice them. Implementing tiered emergency pricing and a tighter dispatch model can lift gross margin meaningfully without adding headcount.
Geographic expansion into Staten Island and under-served outer boroughs. Management identifies this directly, and the existing licensed crew plus 10 service vehicles gives a base to add routes incrementally. Start by hiring or sub-contracting in adjacent zones before committing to a second physical footprint.
Formalize succession for the retiring owner's relationships before close. With one of two owners exiting, the diligence and integration risk is whether his client and referral relationships transfer. Negotiate a meaningful transition period and tie a portion of consideration to retention of the top accounts.
Modernize lead generation and online presence. A 32-year-old shop running on referrals likely under-invests in digital. Local SEO, Google Business optimization, and paid search for emergency keywords can capture the high-intent buyers who search 'emergency plumber NYC' at 2am.
Tighten the fleet and field tech stack. Adding field service management software for scheduling, invoicing, and technician tracking across 10 vehicles would reduce billing leakage and improve the professional billing practices already cited. This pays for itself quickly in a multi-truck operation.

Diligence notes

Verify the cash flow add-backs and owner compensation structure. With two owners and one retiring, confirm how much of the $613K SDE reflects work performed by the exiting owner that would need to be replaced with a paid manager or technician. The true buyer earnings number may be lower than the headline.
Pressure-test customer concentration within the corporate accounts. While 90%-plus are long-standing relationships, dig into what share of revenue the top 10 property management firms represent. Loss of one large portfolio account post-close could materially dent revenue given there are no long-term contracts.
Confirm all licenses, certifications, and their transferability. The business holds required licenses in good standing, but in NYC plumbing the master plumber license is often tied to a specific individual, frequently a departing owner. Establish exactly whose license the business operates under and whether it transfers or requires a qualifying employee to stay.
Clarify the real estate terms and total deal cost. The 11,700 SF building is owned and offered separately, so model both the operations-only purchase and the cost of buying or leasing the facility. Understand whether the retiring owner intends to hold and lease the property and on what terms.
Assess workforce retention risk around the transition. With 15-year average tenure, the crew is the core asset, but verify there are no key employees who may follow the retiring owner out. Review non-competes, compensation, and whether any single plumber holds a disproportionate share of the technical or licensing burden.
Examine seasonality and working capital needs. Heating work creates winter peaks and the listing references consistent demand during peak months, so review monthly revenue to size receivables and payroll swings. Confirm receivable aging on the property management accounts, which can run slow.

Source

Originally listed on BizBuySell. View original listing →