Trenchless Pipe Lining (CIPP)
Fix a sewer line without digging up a single inch of yard — and charge $200 a foot for it
Bottom line
Attractive margins, but operations need a serious buyer.
Cured-in-place pipe (CIPP) lining companies rehabilitate deteriorating sewer, stormwater, and water mains by inserting a resin-saturated liner into the existing pipe and curing it in place with heat or UV light. The result: a brand-new pipe inside the old one, no excavation required. Homeowners pay $200–$250 per linear foot for residential sewer lining. Municipalities pay $50–$150/ft on large contracts. A 3-crew operator doing residential and light commercial work generates $800K–$2.5M in annual revenue at 35–45% gross margins. The no-dig angle makes this a genuinely compelling sell in dense urban neighborhoods where digging costs are prohibitive.
Avg Revenue
$1.2M
Profit Margin
40%
Acquisition Multiple
2.5x - 5x
Startup Cost
$80K - $350K
How It Works
A flexible felt liner saturated with epoxy or polyester resin is pulled or inverted into the deteriorated pipe. Heat (steam or hot water) or UV light cures the resin, hardening it into a seamless pipe-within-a-pipe. The job is done in hours, not days. Residential jobs run $4,000–$15,000 per sewer line. Commercial and municipal contracts for longer runs are priced per linear foot at lower unit rates but much larger total contract values. Work is driven by aging infrastructure — most US sewer mains were built in the 1950s–70s and are reaching end of life.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 238910 · Site Preparation Contractors
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal |
|---|---|---|---|
| Mar 2026 | FL | $734K | $864K |
| Feb 2026 | CO | $2.7M | $3.1M |
| Feb 2026 | SC | $5.0M | $5.9M |
| Dec 2025 | WA | $1.6M | $1.9M |
| Dec 2025 | NJ | $1.1M | $1.2M |
| Dec 2025 | WI | $1.4M | $1.6M |
| Nov 2025 | NY | $400K | $471K |
| Nov 2025 | NY | $3.1M | $3.7M |
| Sep 2025 | IN | $600K | $706K |
| Sep 2025 | AR | $150K | $177K |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +No-dig premium: customers pay 2–3x vs. traditional excavation to avoid destroying landscaping, driveways, or patios
- +Aging US sewer infrastructure creates decades of backlog demand — every city has failing pipes
- +High average ticket: $5,000–$15,000 per residential job, $50K–$500K on municipal contracts
- +Technology moat: CIPP equipment and certified operators are scarce; not easy to enter
Cons
- -High equipment cost — a UV CIPP rig or inversion drum setup can run $150K–$300K
- -Requires certified technicians and specialized subcontractors for camera inspection and lateral reinstatement
- -Municipal contracts have long procurement cycles and require bonding and insurance at scale
- -Material costs (liner, resin) are significant — supply chain disruptions can squeeze margins
Best For
Plumbing or sewer contractors looking to move upmarket; civil engineering entrepreneurs comfortable with capital-heavy equipment businesses
Operating Costs
Primary costs: CIPP equipment ($150K–$300K), liner/resin materials (35–50% of job cost), CCTV inspection van, and skilled labor. Municipal contracts require performance bonds. Residential work can be cash-flow positive within 6–12 months of launch.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Specialty plumbing and trenchless contractor businesses for sale nationally
Industry group for underground infrastructure rehabilitation — buyer/seller network and contractor certification
Largest US CIPP materials and equipment distributor — often knows of operators for sale
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- service
- Difficulty
- 4/5
- Buy price
- $3.0M–$6.0M
Buyer's Toolkit
Essential tools to get started
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Ready to Buy? Start Here →
Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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