Southeast Structured Cabling & Fiber Optic Contractor, Founded 1981

$3.5M

Revenue

$700K

SDE

6.6x

Multiple

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Full Editorial Writeup

This is a Southeast-based structured cabling and fiber optic services contractor operating since 1981, structured as an S Corporation with a long stretch of stable ownership. The company designs, installs, and maintains copper and fiber optic cabling systems that deliver the data, voice, and video backbone for commercial buildings, data centers, schools, government facilities, industrial sites, healthcare, and military end markets. It has served more than 250 clients and carries a multi-million dollar backlog of booked work, giving it real revenue visibility heading into a sale.

The financials are modest but clean: roughly $3.5M in gross revenue, $700K in seller cash flow, and about $600K in adjusted EBITDA, run by 20 full-time employees. Notably, the current owner works only 15 hours per week, which tells you the operation is largely manager-run and not dependent on a hands-on founder in the field. The asking price of $4.6M puts the deal at roughly 6.6x cash flow, which is rich for a sub-$1M-SDE contractor and will need to be earned down through diligence or seller financing.

The business sits inside a genuinely growing category. The North American structured cabling market was about $9.5B in 2024 and is projected to more than double by 2032 at a 10.4% CAGR, driven by data center buildout, 5G, and AI bandwidth demand. This is a boring, essential infrastructure business riding a durable tailwind, which is exactly the kind of unglamorous cash flow that compounds well under a disciplined operator.

Why we like it

Earnings quality is grounded in recurring infrastructure demand and a multi-million dollar booked backlog, not one-off project luck. With 250-plus clients and repeat relationships across seven end markets, revenue concentration risk is lower than a typical single-vertical contractor. The $700K cash flow on $3.5M revenue implies a healthy 20 percent margin for a labor-driven services business.
The moat is a 44-year operating history, established licensing (CA and NV), and a reputation that produces repeat work in a trade where reliability and code compliance win contracts. Cabling is sticky because once you wire a building or data center, the incumbent usually gets the upgrades, moves, adds, and changes. Switching contractors mid-relationship is friction most facility managers avoid.
Market tailwinds are real and durable, not hype. The North American structured cabling market is projected to grow from $9.5B to $23.14B by 2032 at a 10.4 percent CAGR, powered by data center expansion, 5G, and AI-driven bandwidth. This is picks-and-shovels exposure to the AI buildout without betting on any single technology winner.
Operator advantage is unusually clear because the owner works only 15 hours per week, meaning the day-to-day is already run by a bench of 20 employees. A full-time operator or strategic buyer stepping in has obvious upside just by adding sales effort and project throughput. The infrastructure to scale, licensing, partner network, and team, is already in place.

How to improve it

Install or empower a dedicated sales function in the first 90 days. A business this profitable with a 15-hour-a-week owner almost certainly leaves growth on the table, and adding one or two outbound reps targeting data center and government RFPs could compound the backlog quickly. Track pipeline conversion weekly to prove the return.
Build a recurring maintenance and service contract layer on top of the installation work. Structured cabling clients need ongoing moves, adds, changes, and support, so converting one-time installs into annual service agreements smooths revenue and raises the exit multiple. Start by upselling the existing 250-client base.
Tighten project-level gross margin reporting so every job's true profitability is visible. Contracting businesses bleed margin through poor labor tracking and scope creep, so implementing job costing software in the first quarter protects the 20 percent margin. This also makes the business far more sellable later.
Expand the nationwide partner network into direct capability in the highest-margin metros. The listing touts nationwide reach through partners, but partner-fulfilled work carries thin margins, so selectively hiring or acquiring crews in key markets captures more of the spread. Prioritize regions with dense data center construction.
Formalize the government and military vertical with proper certifications and set-aside qualifications. These end markets are recession-resistant and often carry higher margins and multi-year contracts, so pursuing GSA schedules or relevant clearances opens durable, less price-sensitive revenue. It also deepens the moat against smaller competitors.
Renegotiate or lock in the facility lease, currently month-to-month at $2,800. A month-to-month term is a risk for a buyer and a lender, so securing a multi-year lease or a purchase option removes uncertainty and supports SBA financing. Cheap rent is an asset worth protecting.

Diligence notes

Reconcile the financial figures, which are internally inconsistent in the listing. Cash flow is stated at $700K while adjusted EBITDA is $600K and the description references EBITDA over $600K, so demand three years of tax returns and a clear add-back schedule to confirm the true owner earnings. The 6.6x multiple only makes sense on defensible numbers.
Scrutinize the backlog quality and contract terms behind the multi-million dollar figure. Booked does not mean signed and funded, so verify how much is under firm contract versus verbal or letter of intent, and check cancellation and payment terms. Backlog is the core of this deal's value proposition and must be validated.
Assess customer and end-market concentration despite the 250-plus client claim. Ask for revenue by client over the last three years, because a handful of large data center or government contracts could drive most of the profit. Understand renewal patterns and whether any key relationships are tied to the departing owner.
Test how absentee the business truly is and who actually runs it. The owner works 15 hours a week, so identify the project managers, estimators, and lead technicians carrying the load, and confirm they are staying post-sale. A two-week, 30-hour training window is thin, so key employee retention and non-competes are critical.
Verify licensing, bonding, and any pending litigation or warranty exposure. Cabling and low-voltage work is regulated and licensed (CA and NV are noted), so confirm all licenses transfer or can be re-obtained, and review any open claims tied to prior installs. License gaps can halt operations for a new owner.

Source

Originally listed on BizBen. View original listing →