Union Electric Contracting Company, 25-Year Long Island Electrical Contractor

$3.2M

Revenue

$555K

SDE

2.5x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

Union Electric Contracting is a long-established electrical contractor serving commercial and residential clients across Long Island's Nassau and Suffolk counties. With roughly 25 years of continuous operation, the company runs a mix of multifamily builds, office fit-outs, restaurant work, and ongoing service and maintenance jobs. It carries 20-plus skilled field employees and a full supervisory structure, which is the single most valuable thing in a trades business: an installed team that lets the business function without the owner swinging a hammer.

The revenue base is a blend of project work and repeat relationships. The listing highlights recurring contracts with storage centers, property managers, and mid-to-large developers, plus durable ties to general contractors and homeowners. That recurring and referral-driven demand is what separates this from a pure one-off project shop, and it is the reason the business has grown year over year since 2019, including a stated 80% jump in 2024.

At $3.2mm revenue, $555k cash flow, and a $1.399mm ask, the deal prices at roughly 2.5x cash flow. For a union-affiliated electrical contractor in one of the highest-cost, most heavily licensed markets in the country, that is a reasonable entry multiple, assuming the licensing, backlog, and employee retention survive the transition. The buyer must be a licensed operator or a strategic acquirer with proper Nassau and Suffolk credentials.

Why we like it

Earnings quality is anchored in real project cash flow of $555k on $3.2mm revenue, a healthy 17% margin for an electrical contractor. The business has posted year-over-year growth since 2019 with the only dip in 2022 explained by a project cycle wrap-up, which suggests the underlying demand is durable rather than lumpy luck.
The moat here is licensing and a built-out team. Operating legally in Nassau and Suffolk requires specific credentials that most buyers cannot replicate quickly, and 20-plus skilled field employees plus a full supervisory layer means the knowledge does not walk out the door with the owner.
Electrical work in dense Long Island markets is non-discretionary and benefits from steady multifamily construction, office fit-outs, and ongoing service and maintenance demand. Recurring contracts with storage centers, property managers, and developers give the revenue base a floor that pure new-build shops lack.
A licensed operator or a larger electrical firm inherits a turnkey crew, loyal clientele, and a clean fleet with indoor lifts and tools included. For a strategic acquirer entering Long Island, buying 25 years of relationships at 2.5x cash flow beats building that presence from scratch.

How to improve it

Convert the project-heavy mix toward more contracted service and maintenance agreements. The listing already cites recurring work with storage centers and property managers, so formalizing those into annual service contracts would stabilize revenue and lift the valuation multiple at the next sale.
Build a simple backlog and pipeline reporting system in the first 90 days. The 36% projected 2025 growth needs to be substantiated with signed contracts and bid win rates, and tight job-costing visibility will protect margins as volume scales.
Lock in the supervisory team and key field staff with retention agreements before closing. In a trades business, the crew is the asset, and a wave of departures post-sale would gut the value, so stay bonuses or equity-light incentives are worth the cost.
Audit and optimize job-level gross margins across the service lines: multifamily, office fit-outs, restaurants, and maintenance. Identifying which work types actually earn and reallocating crew time toward them can add several points of margin without new revenue.
Formalize the sales and estimating function so growth is not dependent on the owner's relationships. Document the developer and GC contacts, assign account ownership to supervisors, and create a repeatable bidding process to de-risk the transition.
Pursue adjacent higher-margin work such as EV charging installations, electrical service upgrades, and energy efficiency retrofits. These are growing demand categories on Long Island and leverage the existing licensed crew without major new overhead.

Diligence notes

Confirm the exact licensing structure and whether the master electrician license is tied to the owner personally or to the entity. If it leaves with the seller, the buyer must hold or acquire Nassau and Suffolk credentials before closing, which can gate the entire deal.
Scrutinize the 80% revenue growth in 2024 and 36% projected 2025 growth. Verify whether this is driven by a few large one-time projects versus repeatable demand, and pull the signed backlog to confirm the forward number is contracted rather than aspirational.
Verify the union status and labor obligations, including collective bargaining agreements, pension and benefit contributions, and any multiemployer plan withdrawal liability. Union electrical shops can carry significant off-balance-sheet pension exposure that must be quantified before pricing the deal.
Examine customer concentration among the developers, GCs, and property managers. A 2.5x multiple assumes diversified revenue, so if one or two developers drive the bulk of project work, the risk profile and price should adjust accordingly.
Confirm the condition, titles, and liens on the vehicle fleet, indoor lifts, and tools said to be included. Also validate working capital needs, since electrical contracting ties up cash in receivables and retainage that the buyer must fund from day one.

Source

Originally listed on BizBuySell. View original listing →