CONSTRUCTION · AUGUST 2026 MARKET DATA
How much is your electrical contracting business worth?
Apply the reported 2.77× SDE and 0.63× revenue averages to your numbers, then inspect what makes one electrical contracting business differ from another.
Cash flow multiple
2.77×Price ÷ seller’s discretionary earningsRevenue multiple
0.63×Price ÷ annual gross revenueVersus Construction
+5%Cash-flow multiple versus the 2.65× broad-sector averageVersus all businesses
+7%Cash-flow multiple versus 2.58× overallASKING VS. CLOSED SALE · FULL YEAR 2025
Reported electrical contracting business deals averaged 96% of asking.
Based on 57 reported sales. Use the ratio to understand category-level negotiation—not as a forecast for one transaction.
Do not subtract the two medians. Median asking and sale prices may describe different transactions. The source's average sale-to-ask ratio is the supported negotiation measure.
COMPANY-SPECIFIC DILIGENCE
What buyers examine beyond the average.
These factors help explain why two businesses in the same category can sell at different multiples. They are diligence questions—not automatic percentage adjustments.
WORKED MARKET REFERENCE
How the two common methods compare
For an example electrical contracting business with $1,000,000 in annual revenue and $250,000 in SDE:
The indications can differ because margins vary. A personalized market reference should use the company’s actual revenue and normalized SDE, then consider transferability and deal terms separately.
Calculate my private referenceREUSE THIS BENCHMARK
Give readers a calculator.
Embed an interactive SDE-and-revenue calculator with a visible source link, or reuse the period-specific citation and share card. The kit contains public category aggregates—never a contributed profile or transaction row.
Electrical contracting business valuation benchmark: 2.77× SDE, 0.63× revenue, and $1,009,000 median reported sale price. Reported US closed-business aggregates from BizBuySell, Q3 2021–Q2 2026. Analysis and source notes: https://businessvaluation.fyi/business-valuation/electrical-contracting-business?utm_source=shared_benchmark&utm_medium=referral&utm_campaign=industry_benchmark
COMMON QUESTIONS
Reading this electrical contracting business benchmark
How much is my electrical contracting business worth?
A company-specific answer requires normalized earnings, revenue, and its operating risks. As a public starting point, reported sales in this category average 2.77× seller’s discretionary earnings and 0.63× annual revenue. The reported median sale price is $1,009,000.
What percentage of asking do reported electrical contracting business sales achieve?
Across 57 reported 2025 sales, the source reports an average sale-to-ask ratio of 96%. That is an average of transaction-level ratios, not a promise that every seller discounted by the same amount.
How long do reported electrical contracting business sales take?
The reported median was 250 days on market during 2025. Preparation, pricing, buyer financing, diligence, lease transfer, and deal terms can make an individual sale faster or slower.
How should I use the 2.77× multiple?
Apply it first to normalized SDE, not tax-return profit without review. Then cross-check the revenue method and examine the business-specific risks a buyer would inherit.
Does this tell me exactly what my electrical contracting business is worth?
No. It is a reported-sale average, not an appraisal or offer. Company size, margins, growth, transferability, assets, liabilities, geography, and deal terms can produce a different outcome.
Public aggregates reported by BizBuySell for closed US sales of electrical & mechanical contractors. The headline multiples cover Q3 2021–Q2 2026; asking-price, sale-price, and time-on-market metrics cover the full 2025 calendar year. These are useful relative indicators, not a formal appraisal, offer, or complete census.