Electrical Contractor Valuation
Electrician Business Valuation Calculator & Exit Planning Built for Contractors
We built one platform that tracks your electrical business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Electrical Owners Have No Idea What Their Business is Actually Worth
Current Electrical Valuation Multiples (2026)
Electrical values are strong due to increased buyer demand from electrical consolidators and strategic acquirers. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Electrical Business Value
Revenue and earnings are the two most influential factors in your electrical business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Commercial Mix
40%+ Commercial
Commercial and industrial work has larger contracts and better margins. Pure residential is commoditized. Buyers value commercial mix because projects are bigger, relationships are stickier, and you're not competing with every handyman on price.
Residential-only = limited multiple
Master Electricians
Multiple Licenses
Having 2+ master electricians eliminates single-point-of-failure for permits. Buyers worry about what happens if the only licensed person leaves—multiple master licenses mean the business can operate without any single individual.
Single-license = major risk
Owner Role
Sales & Strategy
Owners who still wire panels are the business. Transition to estimating and customer relationships. Buyers pay premiums when the owner focuses on sales, strategy, and customer relationships while crews handle all field work.
Working owners get wages, not multiples
Recurring Revenue
15%+ Maintenance
Electrical maintenance contracts with commercial buildings provide predictable revenue. Buyers love recurring revenue because it's forecastable—knowing you have $30K/month locked in reduces acquisition risk significantly.
Project-only = feast or famine
Specializations
EV/Solar/Data
Companies with EV charging, solar, or data center capabilities command premiums. These growing sectors show a forward-thinking business positioned for where the market is heading, not just where it's been.
Commodity services = commodity pricing
Job Costing
Accurate Tracking
Detailed job costing showing profit by project proves margins are real and repeatable. Buyers will analyze your jobs—if you can show consistent 25%+ margins across projects, they'll pay more because the profit is proven, not promised.
No job costing = unknown profitability
How to Value a Electrician Business
The electrical contracting industry includes over 90,000 businesses in the United States generating more than $200 billion in combined annual revenue. Whether you're planning to sell, bring on a partner, or simply understand your net worth, knowing how to value an electrical business starts with understanding three common valuation approaches.
The most widely used method for Main Street electrical businesses is Seller's Discretionary Earnings (SDE). SDE takes your net profit and adds back owner salary, benefits, depreciation, and one-time expenses to show the true economic benefit of ownership. Electrical businesses typically sell for 2.0x to 4.0x SDE, with companies at the higher end demonstrating strong recurring revenue from service agreements, low owner dependence, and a deep bench of licensed electricians.
As a quick reference, many brokers use a revenue multiple as a rule of thumb. Electrical contractors generally trade between 0.3x and 0.6x annual revenue, depending on margins and mix between new construction and service work. Service-heavy businesses with higher margins consistently command premiums over new construction-focused firms.
What makes electrical businesses particularly valuable is the growing demand from EV charging installations, solar integration, and smart building technology. Companies positioned in these high-growth segments attract premium multiples because buyers see a multi-year tailwind. Additionally, the licensed workforce shortage means a business with a stable team of journeyman and master electricians holds significant strategic value that goes beyond financial metrics.
The electrical contracting market has strengthened considerably in recent years, driven by infrastructure spending, electrification trends, and aging building stock requiring upgrades. Valuations have outpaced many other trade industries as private equity interest in the skilled trades sector continues to grow. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do electrical businesses sell for?
Most electrical businesses sell for 2.0x – 3.2x SDE or 0.4x – 0.8x annual revenue. However, the range is wide. Companies with strong commercial mix can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does commercial mix affect my company's value?
Commercial Mix is one of the biggest value drivers for electrical businesses. Electrical consolidators and strategic acquirers specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my electrical business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your commercial mix, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys electrical businesses?
Common buyers include electrical consolidators and strategic acquirers, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for electrical businesses?
Most electrical businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.4x – 0.8x) are sometimes used as quick reference.
What's the fastest way to increase my electrical business value?
The fastest improvements typically come from: 1) Improving your commercial mix to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.