The short answer: electrical businesses sell for an average of 2.94× SDE (across 57 reported electrical and mechanical contracting transactions), with appraiser ranges at 2.22–2.89×. In dollars: roughly $590,000 for a shop producing $200,000 of SDE. Like HVAC and plumbing, you do not need to be an electrician to own one, but the company needs a qualifying master license holder, and the service-versus-project mix decides where in the range the price lands.
Why electrical rounds out the trades set
Electrical carries the same structural appeal as the other trades: demand that does not cycle with fashion, a licensed labor pool that limits competition, and retiring owner-operators outnumbering successors. It adds a growth tailwind its siblings lack: electrification, from EV charging to panel upgrades and generator installs, steadily adds work that did not exist a decade ago. The constraint is identical to the other trades: licensed electricians are scarce, so the roster is the capacity.
The mix rule from HVAC applies unchanged: service and maintenance revenue recurs and prices at the top of the range; new-construction project work is lumpy, competitively bid, and prices at the bottom. A shop split between service calls and small commercial contracts is a different asset from a subcontractor riding two builders' pipelines, at the same revenue.
What electrical businesses sell for
| Measure | Figure | Notes |
|---|---|---|
| SDE multiple | 2.94× average | Across 57 reported electrical & mechanical contracting transactions |
| Appraiser SDE range | 2.22–2.89× | Peak Business Valuation, $1–5M cohort |
| Revenue multiple | 0.59× average | Same transaction dataset |
| Worked example | $200K SDE → ~$590,000 | At the transaction average |
| Pushes the price up | Pulls it down |
|---|---|
| Service and maintenance-agreement revenue | New-construction dependence on a few builders |
| Licensed electricians with tenure | One master license holder who is also the seller |
| Diversified commercial and residential accounts | Bid-only work with no repeat base |
| Electrification work in the mix (EV, panels, generators) | A book of one-off jobs with no recall engine |
| Clean job costing that ties to the financials | Estimates and invoices that never reconcile |
| Business size | Implied price | Note |
|---|---|---|
| $800,000 revenue | ~$470,000 | Owner on the tools plus a small crew |
| $1.5M revenue | ~$885,000 | Service trucks and a dispatcher |
| $3M revenue | ~$1.8M | Commercial contracts; EBITDA pricing enters |
Illustrative sizes at the dataset average; service mix and the license bench move a specific shop off these marks.
The diligence that makes or breaks an electrical deal
| What to verify | The question it answers | Where it shows up |
|---|---|---|
| Service vs project revenue split | How much revenue recurs without bidding? | Revenue by job type, 24 months |
| The license bench | Who besides the seller can qualify the company? | Roster of licensed electricians; state qualifier rules |
| Customer concentration | Does one builder or property manager carry the book? | Revenue by account |
| Open permits and inspections | What unfinished obligations convey? | Permit records; job files |
| Warranty and callback history | What does finished work cost after it is finished? | Callback logs; warranty terms |
The question that decides trade-business deals
Who holds the master license, and do they stay? If the answer is "the seller," the price should reflect the transition risk, the agreement should keep them as qualifier through a defined handover, and your first hire is already chosen.
How a typical electrical purchase is financed
| Source | Amount | % of price |
|---|---|---|
| SBA 7(a) loan | $540,000 | 90% |
| Equity injection (total) | $60,000 | 10% |
| of which: standby seller note can cover | up to $30,000 | up to 5% |
| of which: your cash portion | as low as ~$30,000 | ~5% |
Standard trade-business SBA territory; the stack, standby notes included, is in the acquisition financing guide.
Run an electrical deal through the calculator
Where to find electrical businesses for sale
| Channel | What you find there | How to work it |
|---|---|---|
| Marketplaces | Steady trade-shop inventory | Alerts on; see the marketplace comparison |
| Local brokers | The better shops, sold through relationships | Get on their lists early |
| Direct outreach | Retiring masters; supply-house reps know every one | The off-market playbook |
Found a shop with real service revenue?
The free training walks the trades playbook members used to buy home-services businesses with the bank's money.
Every claim checkable: member closings, self-reported and published unedited.
Frequently asked questions
Electrical businesses sell for an average of 2.94 times SDE across 57 reported transactions, with appraiser ranges at 2.22 to 2.89 times and a revenue multiple around 0.59. A shop producing $200,000 of SDE prices around $590,000 at the average.
No. Like the other trades, the company needs a qualifying master license holder on staff rather than an owner-electrician, and state rules govern who can qualify. If the seller is the qualifier, keep them through a defined transition and line up the replacement early.
The mix: service and maintenance revenue recurs and prices at the top of the range, while builder-dependent project work is lumpy and prices at the bottom. A bench of licensed electricians beyond the seller, and diversified accounts, carry the rest.
It is adding work that did not exist a decade ago: EV charging, panel upgrades, and generator installs. Shops already doing that work carry a growth story their multiples increasingly reflect, which is worth checking in the revenue mix.
Yes, standard trade-business territory: a 10% equity injection, about $60,000 on a $600,000 shop, with up to half available as a standby seller note.
Sources
Transaction averages: Sundance Financial, SDE Multiples by Industry (2026), averages across 9,500+ small-business transactions reported in 2025 (electrical & mechanical contracting). Appraiser ranges: Peak Business Valuation, Valuing an Electrical Company ($1–5M cohort, educational figures). Qualifier rules vary by state; verify with the licensing board. SBA mechanics: our equity injection guide.
