Selling your electrical contracting business.
Electrical contractors are drawing strong buyer interest, especially those serving commercial, industrial and specialty customers. The mix of service and project work matters more than size alone.
Typical valuation multiples.
Where a business falls depends on recurring revenue, margins and how much it relies on the owner.
What moves the multiple.
40%+ C&I revenue lifts value; 70%+ is where the highest multiples sit.
Repeat service and maintenance work over one-off projects.
Data center, grid, EV charging and energy-efficiency work.
Multiple master electricians, not just the owner.
Heavy new-construction exposure is discounted.
If the owner prices and wins all the work, buyers see risk.
One general contractor or client dominating revenue.
What electrical owners should know before a sale.
Union and prevailing-wage status shapes which buyers are interested and how the business is valued.
Buyers review signed backlog, margins on work in progress and change-order history.
Your bonding relationship and capacity matter for commercial buyers.
Data center, grid and EV demand have made electrical one of the more active trades for M&A.
Questions electrical owners ask
What is my electrical contracting business worth?
Most owner-led electrical companies we see are valued at roughly 3x–4x EBITDA below $1 million of EBITDA, 4x–7x between $1 million and $5 million, and 6x–9x above $5 million. Commercial and industrial service work, specialty capabilities such as data center, grid and EV charging work, and several master electricians lift value. Dependence on new-construction bid work lowers it.
Who buys electrical companies?
Strategic electrical and multi-trade contractors, private equity platforms, independent sponsors and family offices. Union or open-shop status shapes which of them are interested.
How long does it take to sell an electrical contracting business?
A full sale process typically takes six to nine months from engagement to closing, depending on how prepared the business is, the level of buyer interest and how quickly diligence moves. Signed backlog, margins on work in progress and bonding capacity are reviewed closely, so organising them early helps.