Electrical M&A
Electrical multiples have moved up over the past three years as EV-charger installation, panel upgrades, and solar-adjacent work compound the traditional service model. Licensure barriers are meaningful and support premium multiples.
Why buyers want electrical businesses
- Panel-upgrade work is a durable demand tailwind as electrification accelerates
- EV charger installation is high-ticket, high-margin, and growing double-digit
- Solar and storage-adjacent work reaches customers HVAC and plumbing don't
- State master-electrician licensing creates real entry barriers
What moves multiples within electrical
Drivers of a higher multiple
- EV / panel-upgrade / solar mix > 25% of revenue
- Service-call revenue mix > 50% (versus project work)
- Master electrician(s) staying post-close
- Modern digital marketing engine — real lead-gen infrastructure
Drivers of a lower multiple
- New-construction-heavy revenue (electrical is more new-construction-exposed than HVAC)
- Single-project customer concentration (one large commercial customer)
- License-transfer risk (state-dependent)
- Aged truck fleet with deferred maintenance
The buyer landscape
Private-equity buyers
Newer platform activity — most electrical roll-ups are 2020-and-later vintage. Growing PE demand for platform-quality assets $3M+ EBITDA.
Strategic acquirers
HVAC-plumbing-electrical tri-trade platforms adding electrical depth. Also solar-and-storage-focused strategics with regional M&A programs.
Owner-operator buyers
Active in sub-$1M EBITDA. Note that individual buyers usually need a licensed master electrician on staff to operate.
Process notes
The commercial-vs-residential mix affects buyer type materially: commercial-heavy businesses attract different buyer sets than service-first residential.
Category-specific diligence issues
- Master-electrician staffing post-close
- Commercial customer concentration and contract assignability
- Solar-tax-credit accounting timing
- Warranty exposure on panel work
Frequently asked
What is an electrical contracting business worth in 2026?
Electrical contractors trade at 4.5–6.0× adjusted EBITDA at sub-$1M EBITDA, 6.0–8.5× at $1–3M, and 8.5–10.5× at $3M+. Service-vs-project mix and EV/panel/solar exposure drive within-band placement.
Does EV-charger revenue increase electrical business valuation?
Yes, materially, when it's recurring (fleet contracts, service, monitoring) rather than one-time installation. Recurring EV work in the revenue mix is one of the clearest multiple lifters visible in 2026 diligence.