Who Usually Buys
- Regional contractors
- Larger electrical firms adding crews and customers in Hampton Roads.
- Trade platform investors
- Groups that buy several service trades and combine their back offices.
- Senior employees
- Licensed supervisors or estimators who want to take over.
Service Work or New Construction
Buyers sort your revenue first. Service and maintenance work tends to repeat and carries good margins, while new construction depends on builders and the economy. A company with a large share of recurring service work usually earns a higher multiple.
Who Holds the License
Virginia contractor and tradesman licenses attach to people and companies, so a buyer will ask who qualifies the company and whether that person stays.
If you are the only master electrician, plan how the license will carry on after you leave, and ask your attorney about the steps.
Backlog and Bidding
Show signed work not yet billed, plus the jobs out for bid and your win rate. Buyers like a backlog spread over many customers. If one builder or general contractor gives you most of the work, see selling a company with one large customer.
Margins by Job Type
Job costing that shows profit by type of work helps a buyer see where the money is made. Without it, a buyer has to guess, and guesses tend to run low. Our guide on recasting your profit and loss statement shows how owners clean up the numbers.
Checklist Before Listing
- Three years of financial statements and tax returns
- Work in progress schedule and backlog report
- Vehicle and equipment list
- Staff list with licenses and years with the company
The city license step is covered in Virginia Beach business license when a company changes owners. To start, request a sale estimate.