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63/100· Fair Demo Listing

Commercial Electrical Contractor

Calgary, Alberta, Canada Electrical Contracting Established 2009 7 employees

Business VerifiedBroker Verified

Asking price

$425,000

WhatBiz estimated range $466,000 – $675,000

Analyze this deal

Business overview

The company performs service work, tenant improvements and scheduled maintenance for property managers across the Calgary region. Roughly a third of revenue comes from annual maintenance agreements, which smooths seasonality. The crew includes two journeymen and one apprentice who are expected to stay through a transition.

Asking price
$425,000
Revenue (TTM)
$1,100,000
SDE
$185,000
EBITDA
$152,000
SDE multiple
2.30x
Cash-on-cash (unlevered)
43.5%
Recurring revenue
35.0%
Largest customer
22.0%

WhatBiz Score™ breakdown

Overall 63/100 — Fair. Each dimension is scored independently and weighted.

Profitability49

Seller's discretionary earnings are 16.8% of revenue.

Valuation74

Asking price is 2.30× SDE compared with a common small-business range of roughly 2×–4×.

Financial Health67

17 years of operating history with a 13.8% earnings margin.

Growth Potential54

Reported revenue trend of +9% year over year.

Market Outlook84

Category-level demand outlook based on WhatBiz industry model (sample data).

Owner Independence41

Business is described as owner operated with 7 employees.

Customer Concentration Risk58

Largest customer represents about 22% of revenue.

Financing Potential100

Seller indicates financing is available (about 20% seller-carried).

Scalability40

35% of revenue is recurring or contracted.

AI / Technology Disruption Risk88

Estimated exposure to automation and AI substitution in this category.

Valuation context

Comparable SDE multiples of 2.54x – 3.60x for Electrical Contracting produce an estimated range of $466,000 – $675,000.

  • Recurring revenue: 35% recurring revenue is around or below category norms.
  • Management in place: Heavy owner involvement narrows the buyer pool and reduces the multiple.
  • Operating history: 17 years of history reduces perceived risk.
What's included
  • 4 service vehicles
  • Tools and test equipment
  • Inventory of common materials
  • Customer contracts and maintenance agreements
  • Brand, phone number and website
Growth opportunities
  • Add a second service crew — demand is currently turned away
  • Expand EV charger installation for commercial clients
  • Formalize a preventative maintenance subscription tier
Reason for sale
Owner is retiring after 16 years and wants a structured handover.
Competition
Fragmented local market with several small operators and two larger regional contractors.

What a buyer should check here

Specific questions to raise with the seller for this listing, based on its reported figures.

  1. Confirm the $185,000 in owner earnings

    Ask for three years of tax returns and the add-back schedule line by line. Owner salary and genuine one-off costs are fair add-backs; ongoing vehicle, phone, insurance or family payroll usually are not.

  2. Price sits below the estimated range (2.30x SDE)

    WhatBiz estimates $466,000 – $675,000 for a electrical contracting business with these figures. Ask the seller which comparable sales support their asking price.

  3. Verify the customer mix is as diversified as reported

    The largest customer is reported at 22.0% of revenue. Ask for a revenue-by-customer report for the last 24 months to confirm it.

  4. Test the 35.0% of recurring revenue

    Ask for the contract or subscription list with start dates, renewal terms, churn over the last two years, and whether agreements are assignable.

  5. Plan for the owner's day-to-day role

    The owner is reported as owner-operated. Price a replacement salary for the hours they work, and check whether any licence, certification or key relationship is held personally.

  6. Check the 7-person team and payroll

    Request tenure, wages against local market rates, and any certification or licence held by individual staff. Agree stay bonuses for key people before closing, not after.

  7. Structure the 20% seller note

    Seller financing keeps the previous owner invested in a clean handover. Negotiate the term, interest rate and any performance offset in the same conversation as the price.

  8. Review the leased premises and the lease

    Check remaining term, renewal options, rent escalations, and whether the landlord will assign the lease to you. A short lease on a location-dependent business is a real risk.

This is demo data provided for product demonstration. Figures are illustrative, are not verified, and are not an offer to sell a business. WhatBiz analysis is educational and is not financial, legal, tax or investment advice.

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