Most profitable electrical businesses in Texas sell for roughly 2.5x to 4.5x SDE (seller’s discretionary earnings) for smaller companies, or 3x to 6x EBITDA for larger operations doing several million in revenue. A DFW electrical contractor earning $600,000 in SDE, for example, often lands somewhere between $1.8M and $2.7M depending on the details.
That’s the short answer. But the range is wide for a reason, and where you fall inside it depends on things most owners never think about until they’re sitting across from a buyer. Let’s break down what actually moves the number.
What is my electrical business really worth?
Say you run a commercial electrical outfit in Fort Worth. You’ve got eight electricians, a couple of service trucks, steady repeat clients, and you clear about $450,000 a year after paying yourself. What’s that worth?
The honest answer: it depends on how the money shows up and how much of the business depends on you.
Buyers don’t pay for revenue. They pay for provable earnings and how safely those earnings will continue after you hand over the keys. Two electrical companies with identical sales can be worth hundreds of thousands apart based on customer mix, recurring maintenance contracts, and whether the owner is the one holding every key relationship.
SDE vs. EBITDA – which one applies to you?
Smaller electrical businesses (under roughly $1M in earnings) get valued on SDE. That’s your net profit, plus your owner’s salary, plus personal perks run through the business, plus one-time expenses. It’s the total benefit one working owner takes home.
Bigger companies with a management layer get valued on EBITDA instead, because the buyer is stepping into an operation that runs without a hands-on owner. That shift alone often earns a higher multiple.
What multiple will an electrical business sell for in Texas?
Here’s a realistic snapshot of what we see across the DFW, Austin, and Houston markets:
- Small service-based electrician (owner-operator, under $500K SDE): about 2.5x to 3.5x SDE
- Established contractor with a team and repeat commercial work ($500K-$1M SDE): about 3x to 4.5x SDE
- Larger commercial or industrial electrical firm ($1M+ EBITDA): about 3x to 6x EBITDA
Companies doing new-construction electrical, tenant finish-out for growing DFW commercial space, or industrial and data-center work tend to sit at the top of these ranges when the backlog is strong and the crew is stable. Pure residential break-fix work with heavy owner involvement tends to sit lower.
What makes a Texas electrical business worth more?
Two electrical companies rarely sell for the same multiple. These are the levers that push you up or drag you down:
- Recurring and contracted revenue. Service agreements and maintenance contracts with property managers, retail chains, or facilities are gold. Predictable income earns a premium over one-off jobs.
- Owner dependence. If you personally bid every job, hold every client relationship, and are the only master electrician on the license, buyers see risk. A trained team and a general foreman who runs the field make you far more valuable.
- Clean, separated financials. Buyers pay for what you can prove. Tax returns and P&Ls that clearly show earnings (not blended with personal spending) protect your price.
- Licensing and workforce. In Texas, a master electrician license and a skilled, retained crew are the engine. Buyers worry about labor. Low turnover and licensed staff who plan to stay is a real value driver.
- Customer concentration. If one builder or property group is 40% of your revenue, that’s a red flag. A spread of clients across DFW protects your number.
- Backlog and pipeline. Signed work on the books tells a buyer the revenue doesn’t stop the day you leave.
“All of that was achieved.”
— a husband describing his wife’s retirement sale
What he wanted was for her employees and her customers to be taken care of, alongside the price.
How do I get an accurate number for my business?
A rule-of-thumb multiple is a starting point, not an answer. The only way to know your real range is to have someone recast your financials the way a buyer will and weigh the factors above against actual market activity.
The easiest no-risk first step is a free business valuation. It returns a full value range and a custom report built on your numbers, so you stop guessing and see what your electrical business would actually command in today’s Texas market.
We’ve been doing this for 26 years and closed more than 600 transactions, and we earned the BBB Torch Award for Ethics along the way. That matters here, because a valuation is only as good as the honesty behind it.
It’s also why sellers keep leaving us strong reviews – we’ve got 90-plus 5-star Google reviews and counting. One thing owners mention again and again after selling a trades business is how clear and no-pressure the process felt. They knew their number, they knew what came next, and nobody pushed them. That’s the standard we hold.
When should I get my electrical business valued?
Sooner than you think. Even if you’re two or three years from selling, knowing your number now tells you exactly which levers to pull to grow the value. Fixing customer concentration or building a management layer takes time, and every point of improvement can add six figures at closing.
And if a buyer or competitor has already approached you? Get valued before you respond. Owners who negotiate without knowing their real worth almost always leave money on the table.
Frequently Asked Questions
How long does it take to sell an electrical business in Texas?
Most well-prepared electrical businesses sell in about 6 to 12 months from listing to close. Clean financials, a stable crew, and reasonable pricing speed things up; owner dependence and messy books slow them down.
Does my master electrician license transfer when I sell?
The license itself is tied to a person, not the company, so buyers plan for this early. Deals are often structured so a licensed employee stays on, or the buyer already holds or hires the required license. It’s a solvable issue, but it needs to be addressed before going to market.
What’s the difference between SDE and EBITDA for my business?
SDE includes your owner salary and personal add-backs and is used for smaller, owner-run companies. EBITDA excludes owner pay and is used for larger firms that run under a manager. Which one applies depends on your size and structure.
Can I sell if one customer is most of my revenue?
Yes, but heavy customer concentration usually lowers your multiple because it raises buyer risk. If you have time before selling, spreading revenue across more clients is one of the best ways to protect and lift your value.
Ready to see your actual number? The smartest move is to book a free consultation call and let us walk you through what your electrical business is worth and how to get the most for it.
Reviewed by Ian Biggs, The Vant Group – 700+ closed transactions since 1999, BBB Torch Award for Ethics.