How much is an electrical company worth?

Electrical companies today are trading in the 3x to 7x EBITDA range, and in the right circumstances, with the right business profile, the right buyer, and an experienced advisor running the process, that ceiling can move higher. But the range in electrical is wider in practice than it is in most other trades, and where you land depends heavily on a few specific factors that are unique to how electrical businesses are built and operated.

The most important of those factors is EBITDA size combined with how involved the owner is in the day-to-day field work. For electrical companies generating under $400,000 in EBITDA, the multiple typically falls in the 2x to 4x range. These businesses are often heavily owner-dependent, with the owner working in the field daily, carrying the license, and holding most of the customer relationships personally. That’s a significant risk for a buyer and it’s priced accordingly. For larger businesses generating $1 million or more in EBITDA, with employee tenure, a management structure that functions without the owner required in the field, and a diversified customer base, multiples become considerably more attractive and the buyer pool expands significantly.

Historically electrical businesses sold in the 2.5x to 3.5x EBITDA range. Post-COVID, as private equity and consolidators entered the space aggressively and capital was essentially free, multiples pushed into the 5x to 10x range for well-run companies. That environment has normalized as interest rates have risen, and the current 3x to 7x range reflects a market that is still meaningfully above historical norms but has come off the post-COVID peaks. Active buyers remain in the market for quality electrical businesses, and the window for above-historical multiples is still open, though it is gradually narrowing.