Establish Earnings
Review financial results, owner compensation and one-time expenses. Adjustments need support; costs required to run the company cannot simply disappear.

Find out what drives your electrical company's value. Start with a free review of your earnings, work mix and plans for the business.
Confidential inquiry. No obligation to sell.
Tell us about the company and what you want to understand. Share the information you have; you do not need to prepare a full document package to begin.
Use broad estimates here. Please do not paste financial statements, customer or employee details into the form. Privacy Policy
An electrical contractor's value starts with sustainable earnings. We then assess how reliably those earnings can continue under new ownership and what comparable transaction evidence supports.
Review financial results, owner compensation and one-time expenses. Adjustments need support; costs required to run the company cannot simply disappear.
Examine customer relationships, estimating, field leadership, licensing and active projects. The review considers what a buyer must maintain or replace.
Compare the business with relevant transactions and buyer expectations. Match the earnings measure, scale and work mix before applying a multiple.
Seller's discretionary earnings (SDE) considers earnings available to one working owner, including supported adjustments for that owner's compensation and benefits.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is another measure. A buyer's ongoing management and replacement-labor costs still matter.
Revenue helps establish scale. It does not show how much profit remains or whether that profit will transfer.
Two contractors with similar earnings can attract different offers. These operating details help explain why.
| Value Driver | Why It Matters | Useful Evidence |
|---|---|---|
| Work Mix & Margins | Service calls, maintenance and project work carry different costs and revenue patterns. Repeat work supports value only when it is profitable and durable. | Revenue and gross margin by service line; service agreements and renewal history. |
| Backlog & Job Costs | Booked work is not the same as future profit. Remaining labor, materials and change orders determine what the backlog may contribute. | Job-cost reports, work-in-progress schedules and estimated costs to complete. |
| Customers | Reliance on one customer or general contractor can expose future earnings. Relationships held only by the owner need a transition plan. | Revenue concentration, contract terms and repeat-customer history. |
| Licensing & Leadership | Buyers need a workable plan for qualifying personnel, estimating, project management and crew supervision. | License responsibilities, organization chart and management roles. |
| Cash Collection | Retainage, slow receivables and billing gaps can tie up the cash needed for payroll and materials. | Receivables aging, retainage schedules and billing status by project. |
| Operating Obligations | Equipment needs, leases, bonding and insurance commitments affect the cost and risk of continuing operations. | Asset and lease schedules, insurance history and applicable bonding requirements. |
A valuation is a starting point for a decision—not a promise of what you will take home at closing.
There is no single electrical business valuation multiple for every company. A useful comparison accounts for the earnings measure, size, management depth, customer risk and buyer type.
A quoted asking price is not a completed transaction. Broad contractor averages may also mix businesses with very different economics.
Business value and seller proceeds are different. Debt, cash, working-capital adjustments, taxes, transaction costs and deferred payments can change the amount and timing of what you receive.
Backlog and equipment should not automatically be added to an earnings-based value. Their treatment depends on what is included in the transaction.
A strategic buyer may see value in combining your company with its existing operations. A private-equity-backed buyer may assess how your earnings, management and work mix fit its investment plan. Neither label guarantees a higher price. Compare supportable earnings, the buyer's assumptions and the complete payment structure, not just a headline multiple.
For an electrical contractor, that means testing job margins, backlog profitability, licensing continuity and the team's ability to keep work moving without the owner.
Cash at closing, deferred or contingent payments and rollover equity are different forms of consideration. Retained equity remains an investment with uncertain value and timing of realization. A headline offer is not spendable cash or after-tax proceeds.
The initial review helps identify the financial questions, operating dependencies and next steps worth discussing.
We review your business type, estimates and reason for seeking a valuation.
Discuss financial records, owner involvement and electrical operating issues. Additional records can be requested through follow-up.
Consider a fuller valuation review, preparation for a sale or more time to plan. Your request does not authorize buyer outreach.
The free initial review is not a formal appraisal or a guaranteed sale price.
No. Electrical companies with the same revenue can have different margins, staffing costs and project risk. Sustainable earnings and the ability to continue them provide a more useful starting point.
Yes. The initial valuation review is free and does not require you to sell. More information may be needed to develop an assessment; this form is not an instant calculator or a formal appraisal.
That is an important continuity question, not an automatic answer about value. Requirements depend on the jurisdiction, qualifying-person arrangement and deal structure. Qualified legal and licensing advisors should confirm the transition requirements.
Yes. Understanding the earnings picture, owner dependence and project obligations can help you decide what to improve before approaching buyers.
Understand the business you have before deciding what comes next.
Request a Free Business Valuation