Why a Plumbing Business Sold at 45x EBITDA with Contracts

In Episode 80 of The Buyer & Seller Podcast, Lucas and Luna break down the jaw-dropping sale of a 12-truck residential plumbing company in Phoenix that went for 45x EBITDA. The secret wasn't growth — it was contract structure. The seller converted all work to annual service agreements with guaranteed response times, creating recurring revenue that private equity firms bid up aggressively. Lucas walks through the deal mechanics: how the owner swapped time-and-materials billing for flat-fee membership plans, the data room that showed 87% renewal rates, and the auction process that ended with a strategic buyer paying 3x what a traditional multiple would have suggested. Luna pushes back on whether this is replicable for all trades, and they discuss the 'subscription service' trend sweeping small business M&A. If you own a services business or are looking to acquire one, this episode reveals why contract structure matters more than revenue size. #Plumbing #ServiceBusiness #MergersAndAcquisitions #EBITDA #RecurringRevenue #PrivateEquity #BusinessBroker #SmallBusiness #Phoenix #MembershipModel #ServiceContract #ExitPlanning #BusinessPodcast #FexingoBusiness #BuyerAndSeller #Valuation #SubscriptionEconomy #TradesBusiness Keep every episode free: buymeacoffee.com/fexingo