Residential & Commercial Electrical Contractor, 38-Year South Dakota Operator

$7.5M

Revenue

$710K

SDE

2.8x

Multiple

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Full Editorial Writeup

This is a full-service residential and commercial electrical contractor operating in South Dakota since 1986, nearly four decades of continuous operation. The service mix is intentionally broad: panel upgrades, EV charger installation, lighting design and install, standby generators, troubleshooting and repair, remodel wiring, tenant build-outs, smart-home integration, 24/7 emergency service, and foundation drilling. With 21 full-time employees and roughly $7.5M in revenue, this is a real operating business with scale, not a one-truck owner-operator shop.

The customer base spans homeowners, builders, and commercial clients, which diversifies demand across new construction, renovation, and maintenance cycles. The business is positioned on quality workmanship, dependable response times, and long-standing regional relationships, the classic durable-trades profile. The listing frames it as either a strategic add-on for an existing contractor or a ready-to-run platform for a new owner who holds or can hire an electrician license.

At $2,000,000 against $710,339 SDE, the deal prices at roughly 2.82x. The asking price includes $1,500,000 in FF&E, meaning a meaningful chunk of the purchase is hard assets (trucks, tools, equipment). Inventory of $756,152 and the $1,299,000 building are both excluded from the asking price, with real estate available to buy or lease separately.

Why we like it

Earnings quality is anchored in a 38-year operating history with $7.5M revenue and $710k SDE, so this is an established, staffed business rather than an owner-dependent trade. The diversified service mix across panels, generators, EV chargers, and emergency work smooths demand across economic cycles and reduces reliance on any single revenue line.
Electrical work is genuinely non-discretionary: panel upgrades, troubleshooting, 24/7 emergency calls, and code-required installs still get paid for in a downturn. Licensing requirements and the local reputation built over four decades create a real barrier to casual competition, which protects pricing and margin.
The business rides durable tailwinds in EV charger installation, standby generators, and smart-home integration, all of which are growing residential demand categories. Commercial tenant build-outs and builder relationships add a second demand channel tied to regional construction activity.
For an operator or a strategic acquirer, the 21-person crew and included FF&E package mean you buy capacity, not just goodwill. A retiring seller plus an add-on-friendly structure gives a buyer a real platform to layer on service agreements, pricing discipline, and higher-margin recurring work.

How to improve it

Launch a recurring maintenance and inspection program: generator service contracts, commercial facility electrical inspections, and annual panel/safety checks. This converts episodic project work into predictable recurring revenue and smooths the lumpy new-construction cycle.
Build out a structured EV charger and standby generator sales funnel with financing options and manufacturer partnerships. These are the fastest-growing, highest-ticket residential categories in the mix and deserve dedicated marketing rather than being treated as reactive order-taking.
Implement job-costing and dispatch software to measure gross margin by service line and technician. With 21 employees and $7.5M revenue, even a two-point margin improvement from better labor utilization and change-order capture adds meaningful SDE.
Reduce owner dependency before close by promoting or hiring a general manager and documenting estimating, scheduling, and vendor relationships. The seller is active and offers only 30 days, so building a self-running management layer protects enterprise value and the buyer's financing.
Review and raise pricing on emergency and after-hours calls, which carry premium willingness-to-pay that long-tenured trades shops often underprice out of habit. Codifying a true 24/7 rate card captures margin already being left on the table.
Formalize builder and commercial client relationships into preferred-vendor or master service agreements. Locking in repeat volume from a handful of regional builders creates a more defensible, acquirer-friendly revenue base.

Diligence notes

Verify the licensing structure carefully: the listing states an electrician license is required, so confirm whether the master license belongs to the owner, a key employee, or the entity. If it walks out the door with the retiring seller, the business cannot legally operate until a buyer secures qualified licensure.
Scrutinize the FF&E valuation: $1,500,000 in FF&E is included in a $2,000,000 asking price, so much of the goodwill premium is thin. Get an independent appraisal of the trucks and equipment and confirm condition, age, and any remaining lease or loan balances.
Analyze revenue mix and backlog between residential service, new-construction wiring, and commercial build-outs. Construction-tied revenue is cyclical and project-based, so understand how much of the $7.5M is repeatable service work versus one-off projects that must be re-won.
Quantify owner involvement and key-man risk given the seller is active with only 30 days of transition support. Map who manages estimating, customer relationships, and the crew, and assess whether the 21-person team stays through a change of ownership.
Model the real estate decision separately: the building is $1,299,000 to buy or $6,456.56/month to lease, excluded from the asking price. Run both scenarios against total deal economics and confirm the lease terms if you choose not to buy.
Confirm customer concentration among builders and commercial clients, and review AR aging and warranty/callback exposure. Trades businesses with a few dominant builder accounts carry concentration risk that can swing revenue quickly if a relationship sours.

Source

Originally listed on BizBuySell. View original listing →