How do I check where a plumbing company’s calls come from before buying?

A plumbing company’s phone has to keep ringing after the sale. A buyer can test that by asking where the calls came from, not only how many there were. The answer shows how much of the work belongs to the business and how much belongs to the owner’s name, relationships or habits.

Sort the calls by source

Ask for a year or more of call logs or job tags. Group them into repeat customers, online search, reviews, paid advertising, builders, property managers, and referrals from insurers or home-warranty providers. If the company does not tag jobs, ask the office manager how new customers are asked about it. A rough sample of recent jobs is better than no answer.

Which sources depend on the owner

Some work arrives because the owner knows the property manager or plays golf with the builder. That work may not follow the company to a new owner. Ask the seller to name those relationships, and think about whether introductions and a transition period could carry them over. A meeting before closing, with the seller’s consent, can help.

Concentration in one partner

If one builder, landlord or referral partner supplies a large share of the jobs, ask whether there is a written arrangement and how easily it could end. Look also at how the company handles online reviews, since a search listing is a source the buyer will need to keep. See customer concentration for how another trade approaches it.

• Call log or job tags by source, for at least a year.
• Names of any builders, managers or partners who send regular work.
• Review history on the main business listings.