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ELECTRICAL · Q1 2026 · 2.5×–4.5× SDE band held quarter-over-quarter (n=95, BizBuySell trailing-12-month closed deals)ELECTRICAL · COMEX copper $5.44/lb late March 2026 · 83.7% cumulative inflation since Feb 2020 baselineELECTRICAL · Section 232 copper tariff effective Apr 2, 2026 · Fixed-price 2023–2024 contract margin compression ~12%ELECTRICAL · NEC 2026 arc-flash labeling (Article 110.16) mandatory on non-residential service & feeder equipmentELECTRICAL · 64% of commercial-weighted deals carried arc-flash labeling gaps on installed base · Forward retrofit liabilityELECTRICAL · IBEW–NECA inside agreements 2024–2028 · 3–5%/yr wage escalator locked through 2028ELECTRICAL · Master license depth · 2+ W-2 masters correlates with 3.5×–4.5× upper-band placementELECTRICAL · Industry size $237.6B (Arizton 2024) · 2.4% CAGR 2024–2029ELECTRICAL · Data center + EV charging pipeline inflation cited in 28% of deal presentations · Forward pipeline ≠ trailing SDEELECTRICAL · BLS 47-2111 median wage $61,590 (May 2024) · Journeyman IBEW $40–$48/hr in 2026JAPAN · 電気工事士法 national certification · 第一種 (full scope) and 第二種 (200V residential) portable across prefecturesMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=95 SMB transactionsELECTRICAL · Q1 2026 · 2.5×–4.5× SDE band held quarter-over-quarter (n=95, BizBuySell trailing-12-month closed deals)ELECTRICAL · COMEX copper $5.44/lb late March 2026 · 83.7% cumulative inflation since Feb 2020 baselineELECTRICAL · Section 232 copper tariff effective Apr 2, 2026 · Fixed-price 2023–2024 contract margin compression ~12%ELECTRICAL · NEC 2026 arc-flash labeling (Article 110.16) mandatory on non-residential service & feeder equipmentELECTRICAL · 64% of commercial-weighted deals carried arc-flash labeling gaps on installed base · Forward retrofit liabilityELECTRICAL · IBEW–NECA inside agreements 2024–2028 · 3–5%/yr wage escalator locked through 2028ELECTRICAL · Master license depth · 2+ W-2 masters correlates with 3.5×–4.5× upper-band placementELECTRICAL · Industry size $237.6B (Arizton 2024) · 2.4% CAGR 2024–2029ELECTRICAL · Data center + EV charging pipeline inflation cited in 28% of deal presentations · Forward pipeline ≠ trailing SDEELECTRICAL · BLS 47-2111 median wage $61,590 (May 2024) · Journeyman IBEW $40–$48/hr in 2026JAPAN · 電気工事士法 national certification · 第一種 (full scope) and 第二種 (200V residential) portable across prefecturesMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=95 SMB transactions
Scored Listing·Electrical·Updated 2026-05-02
Upper bandComposite

Commercial electrical contractor, service contract book, two master licenses

§ 01 · Observed

What was documented in diligence.

Service contract list provided with customer names, annual values, and 3-year renewal history. Renewal rate 88% on commercial maintenance book. Two master electricians on staff as W-2 employees — both licensed independently of the owner in the operating jurisdiction. Owner billable-hour log showed 8 hours per week; replacement labor normalization reduced SDE by $22,000. Project revenue reconciled against cash collections — percentage-completion gap less than 4% in trailing 12 months. EV installation pipeline excluded from SDE at seller and buyer agreement.

§ 02 · Outcome

What happened.

Signed at 4.1× SDE. Lender-adjusted DSCR 1.27× after owner-labor normalization. Closed without repricing.

§ 03 · Structural Pattern

How this deal fits the four-pillar framework.

Upper-band placement driven by commercial service contract depth, documented renewal rates, and license continuity that does not depend on the exiting owner. The EV pipeline exclusion from SDE removed the most common top-of-band justification that does not survive lender scrutiny.

This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.

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Methodology · Acquidex v1.0, §3.4 (Earnings Quality), §3.3 (Transferability), §5.1 (Add-Back Stripping per SBA SOP 50 10 8). Methodology paper forthcoming Q3 2026.

Sources · BizBuySell closed-deal data, IBBA Market Pulse Q3–4 2025 and Q1 2026, Pratt's Stats SMB transaction database, Acquidex direct deal observations.

Author · Avery Hastings, CPA. Tokyo-based; SMB and lower-middle-market acquisitions in the US and Japan.

Commercial electrical contractor, service contract book, two master licenses — Electrical Deal Teardown | Acquidex | Acquidex