Non-Union Electrical Contractor, 30-Year San Jose Bay Area Business

$1.2M

SDE

3.3x

Multiple

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Full Editorial Writeup

This is a non-union electrical contracting business that has run continuously in the San Jose Bay Area since 1999. The revenue mix is roughly 80% commercial and 20% residential, with work spanning routine maintenance and repairs to complex commercial installations. The company operates through long-standing relationships with general contractors, property managers, and commercial clients, and generates meaningful repeat and referral business built over nearly three decades.

The business runs lean with 8 full-time employees, several of whom have been on the crew for 10 to 20 years, which matters enormously in a skilled trade where licensed electricians are scarce and expensive in a market like Silicon Valley. Being non-union gives the operation cost and scheduling flexibility versus union shops bidding the same commercial projects. The listing claims a diversified model that blends ongoing maintenance agreements with project-based installation work, providing a base of predictable cash flow underneath the project revenue.

At a $4M asking price against $1.2M of stated EBITDA, the deal is priced at roughly 3.33x and is SBA pre-approved with 10% down minimum. The seller is retiring and offering an unusually generous transition (12 weeks full-time plus a willingness to stay one to two years), which de-risks the handoff of contractor relationships that are the real asset here. The obvious catch: revenue is not disclosed and EBITDA jumps between a first-half SDE figure and a projected full-year number, so the earnings base needs hard verification before anyone wires a dollar.

Why we like it

Electrical work in a dense, high-cost commercial market like the Bay Area is essential and non-deferrable, so the earnings hold up through cycles far better than discretionary trades. The claimed $1.2M EBITDA at a 3.33x multiple is reasonable for a skilled-trade services business if the number survives diligence.
The moat is the relationship book and the crew. Thirty years of trust with general contractors and property managers means the company wins work without competitive bidding wars, and employees with 10-20 year tenure carry the licensing and institutional knowledge that new entrants cannot buy quickly.
A blend of recurring maintenance agreements underneath project-based installation work gives this cash flow a floor that pure-bid contractors lack. Repeat and referral business from an established commercial base means less capital spent chasing every new job.
The seller is retiring and is offering a real transition: 12 weeks full-time plus a stated willingness to stay one to two years and personally introduce the buyer to his contractor network. For a business where the value lives in relationships, that handoff is worth serious money and is rare at this size.

How to improve it

Turn on marketing from a standing start. The seller admits there has been zero marketing and no social media presence, so a basic website, Google Business Profile, and targeted outreach to general contractors could add lead flow at almost no cost within the first quarter.
Hire electricians to break the capacity ceiling. The owner says the existing crew is maxed out and he is turning away work from his contractor contacts, so recruiting two to four licensed electricians directly converts an existing demand backlog into revenue.
Formalize and expand the maintenance agreements. Convert informal repeat commercial relationships into signed recurring service contracts to lock in predictable revenue and increase the multiple on any future resale.
Systematize the sales handoff before the seller leaves. Document every general contractor and property manager relationship, decision-maker, and bid history in a CRM during the transition period so the pipeline does not walk out the door with the founder.
Add residential and small commercial service work to smooth revenue. The 80/20 commercial-residential mix leaves room to grow higher-margin service calls and panel upgrades, especially with EV charger and electrification demand rising across California.
Review pricing discipline. The listing says the company gives 'fair pricing' and avoids bidding wars because of reputation, which often means the owner is leaving margin on the table; a modest structured price increase on service work could flow straight to EBITDA.

Diligence notes

Nail down the actual earnings. Revenue is not disclosed and the EBITDA story shifts between an $800K first-half SDE figure and a projected $1.2M full-year number; demand three years of tax returns, financial statements, and a clear reconciliation of SDE versus EBITDA before accepting the 3.33x framing.
Test customer and contractor concentration. If a handful of general contractors drive most revenue, the retirement of the owner who holds those relationships is a real risk even with a transition; quantify revenue by client and confirm whether relationships transfer.
Verify licensing and key-employee retention. Confirm which individuals hold the required California C-10 electrical license and whether the license travels with the sale, and secure retention or non-compete terms for the tenured electricians who carry the technical capacity.
Examine work-in-progress and contract backlog. As a project-based contractor, review open jobs, bonding, warranty exposure, retainage, and any pending change orders or disputes to avoid inheriting unprofitable or contested contracts.
Confirm the lease and facility terms. The business runs from a leased warehouse with roll-up doors at a stated rent portion of $2,430; get the full lease economics, renewal terms, and landlord willingness to sign a new lease in writing before close.
Validate the SBA pre-approval and structure. Confirm the terms behind the 10% down claim, the buyer qualification requirements, and how the seller's stated one-to-two-year stay is structured so it does not conflict with SBA change-of-ownership rules.

Source

Originally listed on BizBuySell. View original listing →