3 Deals We're Watching

This Twin Cities plumbing operation is a textbook example of the power of operational efficiency in service businesses. At a 36.2% cash flow margin, this business is extracting nearly twice the typical 18-22% margin seen in residential plumbing—that's the kind of pricing power and cost control that only comes from either dominant market positioning or exceptional systems. With just 6 employees generating $1.96M in revenue, that's $326K per employee, suggesting either premium pricing, recurring maintenance contracts, or highly efficient routing. The 3.5x cash flow multiple is fair but not inflated, leaving room for a buyer to scale through additional trucks or commercial expansion while maintaining these industry-leading margins.

Verdict: Premium operator with fortress margins—rare find in a fragmented industry