Trade and home services
Electrical contractors
Wild Rose Advisors advises the owners of electrical contractors, a trade on the same acquisition cycle as HVAC and plumbing.
What a buyer pays for
In this trade, value is driven by the share of the work that recurs without being sold again, more than by revenue.
- 01
Service Revenue
Repeat service work, testing and maintenance contracts are priced as recurring revenue. Project-only books are priced as cyclical work. The mix determines which business is being sold.
- 02
Master License
If the owner is the only master electrician, the license leaves at closing. A master on staff who remains is the difference between selling a business and selling a job.
- 03
Multi-Trade Appeal
The most active buyers are assembling HVAC, plumbing and electrical under one brand. An electrical contractor in a metro where a platform already owns the other two trades is typically worth more to that buyer than to any other.
The buyers
Electrical contracting is largely a market of operating companies rather than single license holders, which is part of why buyers treat it as an acquirable trade.
An owner who has received an approach may bring the offer to Wild Rose Advisors before signing anything. A letter of intent usually carries an exclusivity clause, and once it is signed the seller's leverage is largely gone.
All SectorsThe Practice Serves
- Independent contractors with steady repeat and service work
- Owners receiving first approaches from multi-trade platforms
- Contractors with licensed masters on staff beyond the owner
Wild Rose Advisors welcomes conversations with the owners of founder-owned companies.
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