Vertical Intelligence
Electrical Contractor
Intelligence Hub
Electrical contractors are trading at historic premiums in 2026 due to the electrification macro-trend. But "Master License" risk and messy project accounting can turn a great deal into a legal trap.
EBITDA Multiple
4.0x - 6.0x
Higher for Service-heavy mix
Project Backlog
3 - 6 Months
Critical for revenue visibility
Labor Cost %
25% - 35%
Fully loaded including benefits
Material Markup
20% - 40%
Varies by job size
Project vs. Service
The Valuation Bifurcation
In 2026, the highest-valued electrical businesses are those that have successfully transitioned from "Bid-Spec" commercial work to "Residential Service" or industrial maintenance. Service work carries 20%+ higher margins and commands a premium multiple due to lack of cyclical risk.
Residential service tickets should average $350 - $550.
Commercial backlog should be 100% bonded and under contract.
EV charger installation is the fastest growing margin segment.
Technical Red Flags
Master License Dependency
If the seller is the only Master Electrician and no employees hold the license, the business cannot legally operate after the sale.
Unbonded / Uninsured Subs
Heavy reliance on 1099 labor without proper bonding creates massive liability for the new owner.
Multi-Family Concentration
Over-reliance on new-build apartment complexes often leads to high-volume, low-margin revenue cliffs.
Buying "Hands," Not Contracts?
With the 2026 electrician shortage, many buyers are acquiring small shops purely for the Journeymen and Apprentice roster. Learn how to value labor-led acquisitions vs. contract-led ones.
Foundation Intelligence
The Three Master Pillars
Every successful acquisition starts with these three fundamental concepts. Master the math and the risks before signing an LOI.
SDE Mathematics
Learn the formula for Seller’s Discretionary Earnings and how to normalize cash flow.
Due Diligence Red Flags
7 critical red flags that kill small business deals instantly during diligence.
Revenue Verification
How to verify business revenue without blindly trusting the seller’s P&L statements.