Read the full deal writeup
Sign up for a free Accredited account to read the editorial writeup, financials, and broker contact for this deal.
Get Free AccessFull Editorial Writeup
This is a Southwest U.S. turnkey electrical and industrial services provider that designs, builds, fabricates, and installs custom control panels and power distribution systems for commercial and industrial energy operations, including both on-grid and off-grid installations. The company is a UL 508A certified panel shop, a meaningful credential that signals quality standards and unlocks work with sophisticated industrial clients. Beyond fabrication, it provides troubleshooting, upgrades, and ongoing technical support, which creates recurring service touchpoints alongside project revenue.
The numbers tell the real story. At roughly $42M in revenue and $7.27M in EBITDA, this is a 17% EBITDA margin business that has compounded adjusted EBITDA at 35.8% CAGR from 2023 to 2025. That kind of growth in a boring, infrastructure-adjacent services category is rare, and it is being driven by the data center, AI infrastructure, and manufacturing buildout sweeping the Southwest.
What makes this durable is the customer base. Management reports 95% of 2025 revenue came from repeat clients, with Master Service Agreements locking in the largest accounts. The company operates three leased facilities across two cities, all assumable post-sale, so there is no real estate cost to underwrite into the deal. This is an operating-business sale with sticky relationships, real certifications, and a tailwind that is not slowing down.
Why we like it
- Earnings quality is strong with $7.27M EBITDA on $42M revenue, a healthy 17% margin for a project-based electrical services firm. The 35.8% EBITDA CAGR from 2023 to 2025 shows the operating leverage is real, not a one-time bump from a single large contract.
- The moat is built on certifications and relationships rather than price. UL 508A certification is a genuine barrier that filters out unqualified competitors, and 95% repeat revenue plus MSAs with the largest clients means customer switching costs are high and revenue is far stickier than typical project work.
- The market tailwind is about as good as it gets right now. Data centers, AI infrastructure, and new manufacturing plants are exploding across the Southwest, and every one of them needs power distribution and control panels. This business is positioned directly in the path of that capital spending wave.
- Operator advantage is meaningful because the platform already has the credentials, MSAs, and reputation to win bigger work. A buyer can lean on existing client relationships that span multiple states to expand geographically without rebuilding trust from scratch.
- No real estate or heavy equipment is baked into the price, so the EBITDA multiple reflects a true operating business. All three facilities are leased with assumable leases, meaning capital goes toward the cash flow engine rather than into a building.
How to improve it
- Convert more project work into recurring service and maintenance contracts. The company already offers troubleshooting and upgrades, so packaging ongoing technical support into multi-year service agreements would smooth the revenue curve and raise the multiple at exit.
- Pursue the geographic expansion the sellers flagged. Existing clients have projects in neighboring states, so opening a satellite footprint or following anchor accounts across state lines is a low-risk way to grow with demand that already exists.
- Build a dedicated sales and estimating function targeting data center and AI infrastructure developers. This demand is surging now, and a focused business development push could lock in the next wave of large MSAs before competitors scale up.
- Reduce client concentration by diversifying the base. With MSAs concentrated among the largest clients, a targeted marketing campaign to add mid-sized industrial accounts would lower risk and make the business more financeable and more valuable.
- Invest in fabrication capacity and throughput. As a UL 508A panel shop riding a demand wave, the constraint will be production capacity. Adding shifts, automation, or a second build line could capture backlog that would otherwise go to competitors.
- Formalize a talent pipeline for skilled electrical and fabrication labor. Growth in this trade is gated by qualified people, so an apprenticeship or recruiting program protects the growth trajectory and reduces key-person risk in the field.
- Join the industrial and commercial trade associations management identified. Beyond brand awareness, these networks are where MSAs and referrals originate, and active participation can directly feed the project pipeline.
Diligence notes
- Scrutinize the EBITDA adjustments behind the 35.8% CAGR. Verify how much growth came from durable repeat business versus a few large one-time projects, and normalize for owner compensation across three shareholders to confirm true run-rate earnings.
- Dig into the 95% repeat revenue and MSA terms. Confirm the actual contract language, renewal provisions, pricing escalators, and termination clauses, and quantify revenue concentration in the top three to five accounts to size customer risk.
- Examine the project backlog and revenue recognition. Project-based businesses can mask timing risk, so review work in progress, percentage-of-completion accounting, change orders, and how much of 2026 revenue is already contracted versus pipeline.
- Confirm the UL 508A certification, licensing, and key personnel tied to it. Verify which individuals hold the credentials and field leadership, because losing a certified lead or master electrician post-close could impair the ability to bid work.
- Review the three facility leases for assumability, term, rent escalation, and capacity. Since the business depends on its production facility, confirm there is room to grow and that lease economics will not erode margins as volume increases.
- Assess working capital requirements and receivables aging. Industrial project work often carries long payment cycles and retainage, so understand the cash conversion cycle to avoid a working capital surprise after closing.
Source
Want the full analysis on every deal? Unlock the complete platform with Accredited Pro to screen live listings and read our operator-level writeups.