Your Exit PathYourExitPathby Main Street Wealth
Free — No signup — Industry benchmarks

What’s your electrical business worth? Value it in 90 seconds.

Electrical businesses are typically priced on one of two earnings figures depending on size: Seller's Discretionary Earnings (SDE) below roughly $1M, and EBITDA above. Applied to electrical specifically, the base multiple ranges are 2.5x–3.75x SDE and 4x–6.5x EBITDA. Where inside that range your business trades is decided by a handful of specific, buyer-visible factors.

Every input stays in your browser. The tool benchmarks each KPI against real Main Street peers in your industry, layers per-KPI multiple lifts on top of the category baseline, and shows a live range with the reasons behind it.

Electrical business valuation

Licensed residential-and-light-commercial electrical contractors with recurring service revenue are the sweet spot for both PE-backed platforms and self-funded searchers. Multi-trade platforms (HVAC + plumbing + electrical) are aggressively acquiring in top Sun Belt metros, and standalone electrical roll-ups have started to emerge.

Industry benchmarks — Electrical

What’s your electrical business worth?

Enter the numbers that actually drive electrical valuations. We benchmark each against real Main Street peers and show you where you land.

Above peer median — P50
P25 $650KP50 $1.4MP75 $2.6MP90 $4.2M
Above peer median — P50
P25 $100KP50 $240KP75 $480KP90 $800K
Above peer median — P50
P25 30%P50 55%P75 78%P90 92%
Above peer median — P50
P25 45%P50 70%P75 88%P90 100%
Above peer median — P50
P25 1P50 2P75 4P90 7
Above peer median — P50
P25 0%P50 5%P75 15%P90 30%

What moves the multiple

The metrics buyers actually diligence in electrical.

Category baseline is 2.5x–3.75x SDE (below ~$1M SDE) transitioning to 4x–6.5x EBITDA above. Where inside that range a specific electrical business trades is decided by these operating metrics — the same ones a professional QoE surfaces on day one of diligence.

Licensed electricians on staff

Buyers underwrite the licensed labor pool. Loss of a master electrician before close can materially reduce price.

Service vs project mix

Steady service revenue trades at premium multiples versus project-based revenue with lumpier cash flows.

License transferability

State-specific — some licenses transfer only with the master electrician on staff. This is a diligence gate, not a nice-to-have.

Deal structure norms

How electrical deals actually close.

License-transfer clauses drive the timing of many electrical deals. Most sub-$3M-revenue closes are SBA-financed with the master electrician on a 12-month consulting agreement post-close. Multi-trade platform buyers typically want to combine the acquisition with existing HVAC or plumbing operators in the same metro.

Recurring-revenue anchor for electrical: 25% of revenue is the threshold that meaningfully lifts multiples. Businesses below that trade nearer the baseline low; above it, buyers underwrite at the top of the range.

People also ask

Valuing a electrical business.

  • How is my electrical business valued?
    Electrical service businesses trade at SDE multiples of 2.5–3.75x for owner-operator businesses below $1M SDE. Above $1M EBITDA, expect 4.0–6.5x — the top end reserved for operators with commercial service contracts, a licensed staff, and recurring service agreements.
  • How does licensing affect an electrical business sale?
    Materially. State-specific rules determine whether the business's license transfers to a buyer automatically or whether a qualifying master electrician must remain on staff. This is often the deal's critical path — verify with your state's licensing board before signing a purchase agreement.
  • Do commercial electrical operators sell for more?
    Commercial-heavy operations typically command modest premiums because of longer customer relationships and higher gross margins, but the highest multiples in the category still go to operators with recurring service-agreement penetration above 25%.
  • How accurate is this electrical valuation estimate?
    It's an initial diagnostic, not a formal appraisal. The engine uses baseline 2.5x–3.75x SDE / 4x–6.5x EBITDA multiples from published Main Street M&A data, then layers per-KPI adjustments using P25–P90 industry benchmarks. What it can't see is qualitative signal — customer-relationship durability, management-team quality, regulatory risk in your niche. Use it to see where your business lands against peers, then let a specialist broker validate against your actual books before you go to market.

Topic cluster

Business Valuation

How buyers actually price Main Street businesses — SDE and EBITDA multiples, industry benchmarks, and the eight factors that move the number.

Also in this cluster — 9 pages

Ready to talk numbers with a human

Validate the estimate with a specialist broker.

Free 30-minute consultation. Sukhrobjon (Rob) Ismoilov or a matched electrical specialist reviews your inputs against the current buyer set.

Sukhrobjon (Rob) Ismoilov, M&A Advisor

Schedule a consultation

Rob IsmoilovM&A Advisor

Main Street Wealth M&A Advisors — 30 min — Free consultation

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