What Is My Electrical Contracting Business Worth?

Electrical contractors are at the center of several major economic trends — EV charging infrastructure, solar installation, data center buildouts, and smart home technology. Buyer demand for electrical contracting businesses has never been higher, especially from PE firms executing home services and specialty trades roll-ups.

Here's how to value your electrical contracting business.

Typical Valuation Ranges

Most electrical contracting businesses sell for 2.5x to 4x SDE. Larger commercial and industrial operators with $1M+ EBITDA can attract PE buyers paying 5x to 7x EBITDA.

Factors that push toward the higher end:

• Mix of residential service and commercial/industrial work
• Service agreement base (maintenance contracts)
• Licensed electricians on staff with strong retention
• Revenue above $3M with consistent growth
• Involvement in high-growth segments (EV, solar, data centers)
• Management team running daily operations
• Strong safety record

Factors that push toward the lower end:

• Owner is the master electrician doing most of the work
• Revenue dependent on new construction (cyclical)
• No service agreements or recurring revenue
• Difficulty finding and keeping licensed electricians
• Single large customer representing 25%+ of revenue
• Union labor challenges

Why Electrical Contractors Are in Demand

Electrification tailwinds. EV charging, solar, battery storage, and smart home technology are driving new demand for electrical work. Companies positioned in these growth areas are especially attractive.

Licensed trade. Electrical licensing requirements create real barriers to entry. You can't just start an electrical contracting business without qualified, licensed personnel.

PE consolidation. Private equity firms are rolling up electrical contractors alongside HVAC and plumbing companies to build multi-trade home services platforms.

Essential service. Electrical work is required for construction, renovation, and maintenance. Demand tracks with economic activity but service work remains steady even in downturns.

Key Metrics Buyers Evaluate

Revenue Per Electrician

Strong electrical contractors generate $200K–$350K+ per electrician annually. Below $175K may indicate utilization or pricing issues.

Service vs. Construction Mix

Service and repair work (residential panels, troubleshooting, upgrades) generates higher margins and is more predictable than new construction. A 50/50 or 60/40 service-to-construction ratio is attractive.

Backlog

Current project backlog provides visibility. A healthy backlog of 3–6 months gives buyers confidence in near-term revenue.

Journeyman and Master Electrician Count

Licensed electricians are the scarce resource. The more licensed personnel you employ, the more capacity and the more defensible the business.

Safety Record

EMR (Experience Modification Rate), OSHA history, and safety training programs all factor into buyer evaluation — especially for commercial and industrial work where safety is a qualification requirement.

How to Increase Your Electrical Business's Value

1. Build a service division. Residential service calls, panel upgrades, and generator installations create higher-margin recurring work.
2. Position in growth segments. EV charger installation, solar electrical, and smart home wiring are high-demand, high-margin services.
3. Recruit and retain licensed electricians. Apprenticeship programs, competitive pay, and clear career paths keep your team intact.
4. Diversify your customer base. Reduce dependency on any single general contractor or property owner.
5. Invest in safety. Formal safety programs, OSHA training, and clean EMR rates are table stakes for commercial buyers.
6. Build a management team. Project managers and a field supervisor who can run operations without you significantly increase transferability.

Ready to Find Out What Your Electrical Business Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential valuation.