What do owners wish they knew before buying a plumbing company?
New plumbing company owners are most often surprised by how much of the business runs on emergency calls, the phone and a few licensed plumbers. Ask who answers after hours, who dispatches the day, which people hold the licences, and what condition the vans and tools are in before you commit.
A plumbing company looks simple from the outside: customers call, a plumber shows up, the job gets done. Owners who have been through a purchase often say the surprises came from everything around the work itself. The hours, the phone, the people who hold the licences and the vehicles that keep it all moving are where a first year gets difficult. Here is what to ask about before you buy.
Emergency calls do not keep office hours
Burst pipes and backed-up drains do not wait for Monday. Ask how after-hours calls are covered today, who is on call, how they are paid for it and what the seller personally did on nights and weekends. If the owner quietly carried that load, it becomes yours on the first day. Decide early whether you will take it on, share it or build a rota.
The phone and dispatch land on the owner
Someone has to answer the phone, book the day and send the right plumber with the right parts. In many small companies that is the owner, a spouse or one long-time office person. Ask who does it, what system they use and whether it is written down. Ask how much of the customer relationship runs through that person, and what happens to it during the transition.
Licensed people are hard to replace
Ask your lawyer whether certain work must be done by licensed people, and who in the company holds those licences. Find out who holds which qualifications, who is an apprentice and whether the seller held a licence the business relies on. Your lawyer can tell you what the licensing rules mean for a sale. This page on what happens if the owner is the only plumber shows the problem from the seller’s side.
Vans and tools are a real cost
The fleet and tool inventory are part of what you are buying, and they wear out. Ask for a list of vehicles, their age, their service records and who owns or leases each one. Have a mechanic look at them if you can. This page on buying or starting a plumbing company covers the wider decision.
Related reading
14 pages on the same subject, grouped by topic.
Buying
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- Expert answerWhat does a plumbing company owner do day to day?
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- Expert answerHow do I find a plumbing business for sale in Canada?
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Financing
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Mechanical Contractors Association of CanadaIndustryHome - Mechanical Contractors Association- Canada
- 04Employment and Social Development CanadaGovernmentSkilled Trades and Apprenticeship (Red Seal Program)
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