$2.6M
$694K
3.2x
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Well Established Electrical Contractor Listing located in Georgia Asking Price: $2.25M | 2025 Revenue: $2.6M | 2025 SDE: $694K Inventory...
Why we like it
- Earnings quality is strong for the category, with $694K SDE on $2.57M revenue representing a 27% margin. That kind of margin in electrical contracting usually reflects good job pricing discipline and controlled overhead, not a fluke, and it gives a buyer real cushion to absorb a soft year or a bad project.
- Electrical work is genuinely non-discretionary and code-driven. Panels fail, permits require licensed work, and both homeowners and commercial landlords cannot legally defer much of this, which makes the demand base far more durable than most home-services categories through a downturn.
- Georgia is a tailwind market with steady population growth, active residential and commercial construction, and rising demand for EV charger and solar-related electrical work. An established licensed contractor is positioned to capture that ongoing volume without needing to invent new demand.
- At 3.24x cash flow, the price is reasonable for a service business throwing off nearly $700K. With SBA financing the debt service is comfortably covered by SDE, and the downside is protected by the recurring, essential nature of the underlying work.
How to improve it
- Build or expand recurring service agreements with commercial property managers, retail chains, and property owners. Converting one-off project revenue into scheduled maintenance contracts smooths the lumpiness of contracting income and increases the multiple a future buyer will pay.
- Stand up a dedicated EV charger and solar-tie-in installation line within the first 90 days. This is fast-growing, high-ticket work in Georgia, and an existing licensed crew can capture it with marketing and a few OEM certifications rather than new fixed cost.
- Systematize lead capture and quoting with a field-service software platform. Faster, more consistent estimates raise close rates and let the owner step out of the sales seat, which directly improves transferability and financeability.
- Reduce owner dependence by promoting or hiring a qualified master electrician to hold or support licensure and run day-to-day operations. If the business relies on the seller's personal license, this is the single most important move to protect enterprise value.
- Push into higher-margin commercial and tenant-improvement work if the current mix skews residential. Commercial clients offer repeat volume, larger tickets, and less price sensitivity, all of which lift margin and stability.
- Implement disciplined job costing and gross-margin tracking per project. Knowing which job types and crews actually make money lets you fire unprofitable work and lean into the winners, which is the fastest path to margin expansion.
- Invest in local SEO, Google reviews, and a referral program to lock in inbound demand. In the trades, a strong local reputation compounds and lowers customer acquisition cost, giving a durable moat against newer competitors.
Diligence notes
- Confirm who holds the electrical license and whether it transfers with the sale. If the business runs on the seller's personal master electrician license, a buyer must secure a qualifying licensed individual before or at close, or the deal is not operable.
- Break down revenue by residential versus commercial and by project versus recurring service. Lumpy, project-based revenue with customer concentration is worth less and is harder to finance than a diversified, repeat-customer base.
- Verify the $694K SDE against tax returns and bank statements, and scrutinize the add-backs. Contractor SDE can be inflated by aggressive personal expense adjustments, so reconcile the reported cash flow to actual deposits over the trailing 12 to 24 months.
- Assess the crew: how many licensed and journeyman electricians, tenure, wage rates, and whether they stay post-close. In a labor-tight trade, losing key techs after the sale can gut the business faster than losing any single customer.
- Review the pipeline, backlog, and work-in-progress at close. Understand how much of 2025 revenue is committed versus speculative, and whether any large one-time projects are propping up the trailing numbers.
- Confirm the state of vehicles, tools, and equipment included, plus any outstanding leases or debt on them. Also clarify the inventory value referenced in the listing and whether it is included in or on top of the asking price.
Source
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