Question 1

How do I sell my electrical contracting business?

Accepted Answer

Selling an electrical contracting company is typically a 6–9 month process when run correctly. Step 1: clean up financials so a quality-of-earnings firm can normalize EBITDA — separate owner add-backs, document recurring service revenue, and reconcile your job-cost system to your tax returns. Step 2: choose the right partner. For sub-$1M EBITDA shops a flat-fee broker is usually fine; for $1M+ EBITDA hire an M&A advisor with active PE-platform relationships in electrical contracting. Step 3: build a CIM that tells the right story (vertical mix, service vs. project, bonding capacity, qualifier depth, backlog) and confidentially market to a curated list of 100+ PE platforms and strategics. Step 4: select an LOI from the IOIs, manage 60–90 days of buyer diligence, negotiate the SPA, and close. Owners who skip the prep step routinely lose 6–12 months and 10–20% of headline value to retrades.

Question 2

What multiple do electrical contracting companies sell for?

Accepted Answer

Per GF Data tracked by BMI Mergers in 2024, electrical contracting deals at $3M–$8M of EBITDA averaged 6.2x–6.4x EBITDA, and deals at $8M+ averaged 7.8x. Sub-$1M EBITDA shops generally trade 3x–5x as Main Street transactions. Specialization in data centers, mission-critical, healthcare, and industrial controls — plus a meaningful service-revenue component — pushes valuations to the upper end of these ranges.

Question 3

How much is my electrical contracting business worth?

Accepted Answer

For lower middle-market electrical contractors, valuation is adjusted EBITDA × an industry multiple. Adjusted EBITDA = net income + interest + taxes + depreciation + amortization + owner add-backs (above-market salary, personal expenses, one-time items, and discretionary spend). At $2M of adjusted EBITDA with diversified GC mix, a clean bonding profile, master electrician depth beyond the owner, and 25%+ recurring service revenue, you should expect roughly 6.5x–7.5x EBITDA — implying a $13M–$15M enterprise value before working capital and earn-out structure.

Question 4

Who is buying electrical contractors right now?

Accepted Answer

Active acquirers include PE platforms (Truelink Capital, Platte River Equity, MFG Partners, Bernhard Capital, Excel Group), publicly traded strategics (IES Holdings — NASDAQ: IESC, MYR Group — NASDAQ: MYRG, Comfort Systems USA — NYSE: FIX), large MEP roll-ups, and family offices building skilled-trade portfolios. PitchBook reports that PE deal count in electrical construction during the first half of 2025 already exceeded all of 2024 — buyer demand is at multi-year highs.

Question 5

How long does it take to sell an electrical contracting business?

Accepted Answer

A well-prepared sell-side process runs 6–9 months: 4–8 weeks of prep (QofE-ready financials, project margin and backlog analysis, CIM), 60–90 days of confidential buyer outreach producing IOIs, 30–45 days of LOI competition and exclusivity, and 60–90 days of confirmatory diligence through close.

Question 6

What about my electrical contractor license — does it transfer?

Accepted Answer

In most states, the corporate electrical contractor license is held by a designated qualifier, usually a master electrician on staff. If the owner is the only qualifier, every PE buyer will need a transition plan: hire a replacement qualifier, retain you on a multi-year consulting / earn-out arrangement, or sponsor an existing employee through master licensure before close. Building qualifier depth 12–24 months ahead of a sale is one of the highest-ROI moves you can make.

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