High-End Residential Electrical Contractor, 1986 New York

$4.4M

Revenue

$1.7M

SDE

3.1x

Multiple

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Full Editorial Writeup

This is a nearly four-decade-old electrical contracting company focused on the high-end residential market in New York. Founded in 1986, the business has built its reputation on quality workmanship and reliability, serving discerning homeowners, custom builders, and other trade professionals. With roughly $4.4M in revenue and $1.7M in cash flow, it runs at a strong 38% owner-earnings margin, which is excellent for a trades business and points to premium pricing and disciplined job management.

The operation is staffed by 12 employees (10 full-time, 2 part-time) and operates out of an owned 2,900 square foot facility that the seller will lease back to the buyer for a modest $2,200 per month. Licensed electrical work plus long-standing relationships with builders create a durable referral pipeline in an affluent niche. The asking price of $5.2M against $1.7M in cash flow is 3.07x, which is a fair-to-attractive multiple for a profitable, established contractor with this margin profile.

The seller is retiring and offering three years of seller financing via a secured note at 8%, which signals confidence in the business continuing without them. The transition risk is the central question: at $1.7M of cash flow with 12 employees, the owner's personal relationships and estimating/bidding role likely drive a meaningful share of economics, and the training window is only one month.

Why we like it

Earnings quality is the headline here: $1.7M cash flow on $4.4M revenue is a 38% margin, which is exceptional for electrical contracting where 10-15% is more typical. That premium margin reflects the high-end residential niche where clients pay for quality and reliability rather than shopping the lowest bid.
Durability comes from a 1986 founding date and long-standing relationships with homeowners, builders, and trade professionals. Nearly 40 years of operating history plus a loyal, referral-driven customer base is hard to replicate and creates real switching friction in a word-of-mouth market.
Electrical work is genuinely essential and non-discretionary: wiring, repairs, and code-compliant installs get done regardless of the economy. Even in the high-end segment, affluent homeowners continue to invest in and maintain their properties, which cushions this business against downturns better than most trades.
The seller is offering three years of seller financing via an 8% secured note, which aligns incentives and reduces the equity check. A retiring owner willing to carry paper is signaling confidence the cash flow will persist through transition.

How to improve it

Install a general manager or lead estimator in the first 90 days to absorb the owner's bidding and client-relationship role. With the seller active across 12 employees and only one month of training offered, the single biggest value driver is de-risking owner dependence before the handover window closes.
Add recurring revenue through a maintenance and service plan for existing high-end clients, covering panel inspections, lighting, smart-home systems, and emergency calls. Converting one-time project clients into contracted annual service accounts would smooth revenue and lift the exit multiple.
Push into adjacent high-margin verticals like EV charger installation, home automation, and backup generator systems. These are natural extensions of the existing electrical license and client base, and demand among affluent homeowners is growing fast.
Formalize the sales and referral engine with a CRM and a structured builder-partnership program. Much of this book likely comes from word of mouth, so systematizing lead flow reduces reliance on the owner's personal network and makes growth repeatable.
Review job-level pricing and gross margin by project type to confirm the 38% margin is sustainable and not driven by a handful of jumbo jobs. Tightening estimating discipline and change-order capture can protect and extend profitability.
Evaluate expanding into light commercial and multi-unit residential to diversify beyond single-family high-end homes. This broadens the pipeline while leveraging the same licensed crew and reputation, reducing concentration risk in one segment.

Diligence notes

Quantify owner dependence immediately: determine how much of estimating, client relationships, and job oversight runs through the seller personally. At $1.7M cash flow with only one month of training, the gap between the owner's role and the team's capability is the primary risk to the whole thesis.
Verify customer and referral concentration by pulling revenue by client and by referring builder over the last three years. A high-end niche can be lumpy, and if a few builders or wealthy clients drive most of the book, their relationships may not transfer with the sale.
Confirm licensing requirements and whether the master electrician license is held by the owner or a transferable employee. The listing notes a license is required, and if the qualifying license leaves with the seller, the buyer must secure a licensed qualifier before closing.
Scrutinize work-in-progress, backlog, and the revenue recognition on multi-month projects. Validate that the $4.4M revenue and $1.7M cash flow are normalized and recurring rather than inflated by a one-time surge in large builds.
Review the lease-back terms for the 2,900 square foot owned facility beyond the stated $2,200 per month. Confirm lease length, renewal options, and whether the seller intends to sell the building later, since a future move would add cost and disruption.
Examine employee tenure, compensation, and retention risk for the 10 full-time staff. In a trades business where crews carry client relationships and know-how, losing key electricians during transition would directly hit the margin that justifies this price.

Source

Originally listed on BizBuySell. View original listing →