BreakThru Realty

How Electrical Contracting Companies Are Valued

An electrical contractor is valued on earnings and on what the next year looks like: the backlog of signed work, the service accounts that repeat and the electricians who will still be there. A licence holder who stays through the transition is part of the price.

Storefronts and parked cars along a small town main street at sunset

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Last reviewed November 7, 2026

Find Out What My Business Is Worth · (786) 914-1017

Earnings and the Backlog

Seller's discretionary earnings or, for a larger company, EBITDA sets the base. Buyers then look at the backlog of signed contracts and at work in progress, which is valued on a schedule of contract value, costs to date, billings to date and cost to complete. A backlog with proven margins supports a higher price; a backlog of thin bids does not, and over billings on open jobs reduce what the seller receives at closing.

Service Accounts and Concentration

Service and maintenance work for commercial properties, property managers and repeat residential customers is the revenue most likely to repeat, and it is valued above project work won bid by bid. Concentration is the counterweight: a company whose revenue depends on one general contractor or one developer is priced for that risk.

The Licence, the Electricians and Bonding

The company works under a certified or registered electrical contractor, and the Electrical Contractors' Licensing Board sets the rules for a change of qualifier. Journeymen who stay, a project manager and an estimator raise the value. Bonding capacity and the surety relationship transfer only with the surety's approval of the buyer, so a company that relies on bonded work is valued with that in mind.

Find Out What My Business Is Worth

Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.

Questions Owners Ask

How much is my business worth?
Most owner operated businesses in Florida sell for a multiple of seller's discretionary earnings: net profit plus the owner's salary, benefits and one time or personal expenses run through the business. Where the multiple falls depends on the industry, the lease, the staff, the trend in the numbers and how much the business depends on you. A confidential valuation gives you the range for your business and the reasons behind it.
Will my employees, customers or landlord find out?
Not from us. The business is marketed without its name or address, buyers sign a nondisclosure agreement and prove their funds before they learn who you are, and showings happen after hours or are presented as something else. The landlord is approached only once there is an accepted offer, because the lease has to be assigned.
How long does it take to sell a business?
Six to nine months from listing to closing is common for a well prepared small business, faster when the price is right and the records are clean, longer for businesses that need a licensed buyer or a franchisor's approval. The escrow period after an accepted offer is usually sixty to ninety days.

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