How a Small Electrical Contractor Hit 17x EBITDA with Annual Service Contracts

In this episode of The Buyer & Seller Podcast, Lucas and Luna break down the sale of a small electrical contracting business in suburban Ohio that closed at 17 times EBITDA — roughly 50 percent above the typical multiple for a trade-services firm. The owner had 14 employees, about $2.3 million in revenue, and what looked like a pretty standard commercial-residential mix. But a closer look at the books revealed that 68 percent of revenue came from annual preventative-maintenance contracts with commercial property managers — recurring, high-margin, sticky. Lucas walks through how those contracts were structured, how the owner built them over seven years without a sales team, and why a regional private-equity shop paid the premium. Luna challenges whether those contracts would survive a change in ownership, and they discuss the earn-out structure that bridged that gap. If you own a small trades business and are thinking about an exit in the next three to five years, this episode gives you one concrete lever to start pulling today. #ElectricalContractor #BusinessExit #EBITDAMultiple #RecurringRevenue #ServiceContracts #TradeServices #SmallBusinessSale #PrivateEquity #EarnOut #PreventativeMaintenance #BusinessBroker #OhioBusiness #CommercialRealEstate #BusinessValuation #FexingoBusiness #BusinessPodcast #BuyerAndSeller #ExitStrategy Keep every episode free: buymeacoffee.com/fexingo