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Industrial Electrical Contractor

An industrial and parking lot electrical contractor of over thirteen years, where a key employee runs roughly 99% of field operations and the owner will stay part-time for up to five years.

Business Highlights

  • A key employee of five years' tenure manages roughly 99% of field operations
  • Owner is willing to stay on part-time for up to five years after the sale
  • Five-person team including three field employees and a bookkeeper
  • Over thirteen years of established industrial and manufacturing client relationships
  • Work is bid per project for industrial and manufacturing clients

Considerations / Questions to Ask

  • The listing claims SDE of $637k, but the recorded figure is $444k. This is the one genuine conflict in the record and it needs the seller to resolve it.
  • One employee runs 99% of field operations. That is the single biggest risk in this deal. What holds them?
  • An owner staying five years is unusual. Understand what that says about how transferable the client relationships are.
  • Project work bid per job means no contracted backlog. What is the pipeline, and how far forward is it visible?
  • Electrical contracting requires a licence held by a qualifying individual. Whose is it, and does it stay?

Opportunities

  • A five-year owner transition removes most of the relationship risk that usually kills contractor deals
  • A field operation that already runs without the owner is a business rather than a job
  • Industrial clients repeat, and thirteen years of them is a real book
  • Three field employees against this revenue means added crew capacity converts directly into revenue