Established Electrical Contractor, 10+ Year Eastern Massachusetts Commercial Specialist

$1.5M

Revenue

$571K

SDE

2.5x

Multiple

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Full Editorial Writeup

This is an electrical contracting business serving a primarily commercial customer base across Eastern Massachusetts and Southern New Hampshire for more than a decade. The company delivers a broad services mix, including commercial and residential wiring, panel upgrades, lighting, fire alarm systems, EV charging stations, generators, and security solutions. It runs on a lean, low-overhead structure staffed by a seasoned team of licensed electricians.

What makes this deal notable is the quality of the customer relationships. The listing emphasizes repeat commercial clients who reliably request additional work year after year, which points to a book of business built on trust rather than repeat bidding wars. At $1.49M in revenue against $571K in cash flow, the business is throwing off a 38 percent owner-earnings margin, which is exceptional for a trades contractor and signals disciplined job selection and cost control.

At a 2.45x multiple on cash flow, this is priced in the normal band for a licensed trades business of this size. The buyer profile is clear: an industry acquirer or a licensed electrician who can step into the field and management role, protect the existing relationships, and layer on demand from EV charging and generator work.

Why we like it

Earnings quality is the standout here. A 38 percent cash flow margin ($571K on $1.49M revenue) is well above typical electrical contractor economics, which usually run 10 to 20 percent, suggesting strong pricing power, efficient labor utilization, and genuinely low overhead as described.
The moat is the relationship book. More than a decade of commercial clients who dependably request repeat work reduces the constant bidding grind that kills most contractors, and commercial accounts tend to be stickier and higher-margin than one-off residential jobs.
The demand tailwinds are real and durable. EV charging station installs, generators, and fire alarm and security upgrades are code-driven and electrification-driven categories with multi-year growth, and none of them evaporate in a downturn since commercial facilities need power, safety, and compliance regardless of the cycle.
This is a clean operator play. A licensed electrician or a nearby contractor can absorb the crew, keep the customer base intact, and immediately benefit from an already-profitable, turnkey structure rather than building a book from scratch.

How to improve it

Formalize the repeat commercial work into service and maintenance agreements. Turning the informal 'they call us back' pattern into contracted annual inspections, fire alarm testing, and generator maintenance would convert goodwill into scheduled, predictable recurring revenue and raise the multiple on exit.
Build a dedicated EV charging and generator sales motion. These are two of the highest-growth categories in the service mix, and a focused quoting process plus channel relationships with property managers and dealerships could add material top-line without diluting margins.
Systematize estimating and scheduling with contractor software. Tools like ServiceTitan or Knowify would tighten job costing, improve tech dispatch efficiency, and give the new owner the data to see which job types and clients actually drive the 38 percent margin.
Cross-sell the full service suite into the existing base. Clients who use the company for wiring may not know it does security, fire alarm, or EV work, so a simple account review of the top commercial accounts could surface incremental revenue at near-zero acquisition cost.
Hire or promote a field lead to reduce owner dependency. If the seller currently carries the license and key relationships, developing a licensed lead technician or project manager de-risks the transition and makes the business more scalable and more valuable.
Expand the geographic footprint deliberately. The business already spans Eastern MA and Southern NH, so adding one or two additional crews to serve nearby commercial corridors could grow revenue while leveraging the existing reputation and back office.

Diligence notes

Verify the cash flow and margin claim. A 38 percent margin is unusually high for a trades contractor, so reconcile the $570,887 cash flow figure against tax returns and P&Ls, and confirm what add-backs are included and whether owner labor in the field is being fully accounted for.
Assess customer concentration. 'Loyal commercial clients' is a strength only if no single account represents an outsized share of revenue, so pull a customer-by-customer revenue breakdown for the last three years to see how dependent the business is on its top accounts.
Confirm the licensing situation. Electrical contracting requires a Massachusetts master electrician license, so determine whether the seller holds the qualifying license, whether it transfers, and whether the crew includes another licensed individual who could qualify the business post-sale.
Evaluate the team and wage structure. Skilled licensed electricians are scarce and expensive, so review the crew's tenure, compensation, and any retention risk, since the low-overhead margin story depends heavily on keeping this team intact through the transition.
Understand the seller's role and reason for selling. The listing discloses no transition offer and no reason for exit, so clarify how much of the customer relationships and estimating sits with the owner personally and what handover support is available.

Source

Originally listed on BizBuySell. View original listing →