What is my electrical contracting business worth?

Electrical contractors are valued on owner earnings, but buyers look hard at the mix between service work and project-based construction, because project backlogs can disappear when the owner leaves.

Avg SDE multiple

2.77×

Typical range

1.99–3.35×

Avg revenue multiple

0.63×

Median sale price

$1.01M

BizBuySell industry row: Electrical and Mechanical Contracting Businesses (electrical is not split out). Range applies the typical quartile spread (0.72×–1.21× of the average, from BizBuySell's HVAC quartiles) because no trade quartiles are published. Median sold business: $1,724,323 revenue, $385,902 owner earnings. Source: BizBuySell — Business Valuation Multiples by Industry (businesses sold Q3 2021–Q2 2026); BizBuySell — Construction Business Valuation Benchmarks (sold 2021–2025).

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Trade: Electrical ·

Which state is it in?

Worked example

Hypothetical. An 18-year residential and light-commercial electrician near BizBuySell's median for electrical and mechanical contractors (about $1.72M revenue, $386K earnings).

Revenue $1,700,000, owner earnings (SDE) $385,000, 18 years, about 15% recurring, “I manage, my team does the work”.
Start at the published 2.77× average.
Owner involvement: I manage, my team does the work: +0.15×. Buyers pay more when the business runs without the owner.
18 years in business: +0.10×. Long, proven history.
Adjusted multiple 3.02× × $385,000 = $1,163,000, range $835,000 – $1,405,000.
Revenue cross-check: $1,700,000 × 0.63× = $1,071,000.

What raises the price

Service and small-commercial work with repeat customers
A signed backlog that will transfer
A licensed master electrician besides the owner
EV-charger, solar or generator niches with steady demand

What lowers it

Large share of revenue from bid work for a few general contractors
Owner estimating and winning every job
Bonding capacity tied personally to the owner

Calculating SDE for a electrical contracting business

Start from net profit on your tax return or P&L, then add back:

Owner salary
Owner vehicle and insurance
Depreciation on trucks, lifts and tools
Interest
Non-recurring legal or bonding costs

Only add back what a buyer can verify. If there are two working owners, the second owner's salary usually stays as a cost, because a buyer will need to replace that person.

Questions

Is electrical separate from mechanical in the data?

No. BizBuySell reports Electrical and Mechanical Contracting together, so this page uses that row.

Compare other trades

Trade	Avg SDE multiple	Avg revenue multiple	Median sale price	Basis
Plumbing	2.61×	0.69×	$699,000	Trade row
HVAC	2.83×quartiles 1.99–3.33×	0.60×	$750,000	Trade row
Electrical	2.77×	0.63×	$1,009,000	Trade row
Landscaping	2.49×	0.72×	$449,950	Trade row
Pool service / routes	2.61×	0.83×	—	Sector average (no trade row)
Pest control	2.46×quartiles 1.69–3×	1.01×	$250,000	Trade row
Cleaning	2.25×	0.72×	$281,500	Trade row
Roofing	2.65×	0.59×	$750,500	Sector average (no trade row)
Auto repair	2.85×	0.65×	$430,000	Trade row
Salon / barbershop	2.10×	0.52×	$117,375	Trade row
Other main-street business	2.61×	0.83×	$350,000	General main-street range

Source: BizBuySell, Business Valuation Multiples by Industry, businesses sold Q3 2021–Q2 2026; quartiles from BizBuySell's HVAC and pest-control benchmark pages (sold 2021–2025). Pool and roofing use sector averages; “Other” uses the Service Businesses sector. Retrieved Oct 30, 2026.

Estimates for information only; not an appraisal or an offer. MainStreetKeys is not a business broker. Data retrieved Oct 30, 2026.