When a plumbing contracting company wants to grow, there are a few different ways to do so — they can open a new location to expand their geographic service area, add a new trade, such as HVAC or electrical services, or they can buy out another business.

Brad Williams, vice president of The Beringer Group, and Plumbing & Mechanical columnist, notes that larger plumbing companies buying a smaller business will find the transaction to be immediately accretive to the value of their business.