Non-Union Commercial Electrical Contractor, Ohio

$4.8M

Revenue

$1.0M

SDE

4.0x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

This is a long-standing, non-union commercial electrical contractor based in Ohio, generating roughly $4.8M in revenue with about $1M in cash flow. That is a healthy ~21% owner-earnings margin for a trades business, and the non-union structure matters: it gives the buyer flexibility on labor cost, scheduling, and bidding on projects that union shops price themselves out of. The team is described as experienced with broad capabilities, meaning the crews can self-perform across a range of commercial project types rather than subbing out core work.

The business is positioned as active across all major commercial segments, which typically means new construction, tenant fit-outs, service work, and possibly light industrial. Commercial electrical is a durable niche because buildings need power whether the economy is booming or not, and code-driven service and maintenance work provides a floor even when new construction slows. Ohio's steady commercial base and lower cost structure make it a reasonable market for a shop of this size.

At a 4x multiple on cash flow, the pricing is in the normal band for a trades business with a real team and repeat customer relationships. The value here rides almost entirely on the workforce and the customer/GC relationships. Anyone underwriting this deal needs to get comfortable with how much of the $1M cash flow depends on the departing owner's own estimating, relationships, and field oversight.

Why we like it

The earnings quality is solid for a trades business, with roughly $1M cash flow on $4.8M revenue, implying a ~21% owner margin. Non-union labor gives the operator direct control over cost and crew deployment, which is a real bidding advantage against union shops on price-sensitive commercial work.
Commercial electrical is genuinely durable. Buildings need power, code compliance is non-negotiable, and service/repair work continues even when new construction stalls. That mix gives the business a floor most cyclical construction subs do not have.
The moat sits in the experienced team and broad self-perform capabilities. A crew that can handle multiple commercial project types in-house is hard to replicate quickly, and licensed electricians are a persistent labor shortage nationally, which protects pricing.
This is a boring, cash-generative business in a market (Ohio) with a lower cost base and steady commercial demand. At 4x, you are buying real cash flow rather than a growth story, which limits downside if you can retain the team.

How to improve it

Build a recurring service and maintenance division. Electrical service contracts, panel inspections, and preventative maintenance agreements convert one-off project revenue into predictable monthly income, which raises both margin and eventual exit multiple.
Formalize the estimating and bidding process so it does not live in the owner's head. Document win rates, margins by project type, and GC relationships within the first 90 days to de-risk the owner transition and protect deal value.
Chase higher-margin project mix. Prioritize tenant improvement, service, and design-build work over low-bid new construction, since these segments carry better margins and stickier customer relationships than competitively bid GC work.
Invest in recruiting and apprenticeship. With licensed electricians in chronic short supply, a shop that reliably grows its own journeymen gains a durable capacity advantage and can bid larger jobs without subbing out core labor.
Add adjacent trades or capabilities like low-voltage, data cabling, EV charging installation, or solar. These ride on the same customer base and permits, and expand wallet share per project without needing to win new clients.
Tighten job costing and receivables. Commercial construction is notorious for slow pay and margin leakage on change orders, so implementing real-time job costing and disciplined change-order billing can add points of margin immediately.

Diligence notes

Verify the $1M cash flow and how much of it depends on the owner's personal role in estimating, bidding, and field supervision. If the owner is the primary rainmaker and estimator, a large chunk of that earnings power could walk out the door.
Examine customer and GC concentration. Ask what percentage of revenue comes from the top three to five general contractors or clients, and whether relationships are contract-based or purely personal to the seller.
Review the backlog and pipeline. Get signed contracts, work-in-progress schedules, and bid pipeline to confirm revenue is not front-loaded on a couple of large jobs finishing soon with nothing behind them.
Confirm licensing and workforce stability. Understand which licenses are held by the owner versus employees, key-person license risk, crew tenure, turnover, and whether the field team stays post-close.
Scrutinize working capital and receivables aging. Commercial electrical carries meaningful retainage and slow-pay dynamics, so understand how much cash is tied up in AR and WIP and how that affects the true purchase economics.
Clarify years in business and reason for sale, both listed as unknown. A long-standing shop with a departing owner needs a clear succession story, and the absence of a stated transition offer should be pinned down early.

Source

Originally listed on DealStream. View original listing →