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How to Sell My Electrical Contracting Business

If you are like most of our clients, you have worked for many years to build up a profitable company, and now you are considering how to value an electrical contracting business. Electrical contracting businesses vary widely. Some serve commercial customers, while others only do residential work. There are union shops and non-union shops. Many electrical contractors take on new construction, and some focus more on remodeling and repair work. Your company may do underground wiring or wiring within a building. Whatever type of electrical contractor business you own, when it comes time to sell, you want to maximize the price, keep the sale confidential and find the best buyer to take over.

Synergy Business Brokers Can Sell Your Electrical Contracting Business

Synergy Business Brokers has over 20 years of experience selling contracting companies and can meet with you in a confidential consultation to guide you throughout the sales process. We are unique in that we are business brokers with electrical contracting experience. We'll ask you about what your company specializes in and collaborate with you to position it to find potential buyers. We don't charge an upfront fee, so we are selective in taking on businesses we firmly believe we can sell. We exclusively sell companies with annual revenues between $700,000 and $100 million. If yours falls within that range, we can walk you through how to sell an electrical contracting business.

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How Much Can I Sell My Electrician Business For?

We'll review your financial information and provide a potential selling price. After all, you want to maximize your amount, but you need to be within an asking price range that buyers consider reasonable. We have years of valuing business and taking into account many factors.

Who Are the Buyers of Electrical Contractors?

The electrical contracting industry is worth an estimated $160 billion. There are 70,000 electrical contracting firms in the U.S. alone.

While some of your potential buyers will come from within the electrical contracting industry, many other firms within the construction industry are interested in acquiring electrical contractors. These firms might already offer electrical contracting but want to expand their business. Some potential buyers may not currently do electrical contracting and want to get into this aspect of the business. Or, they may subcontract electrical work and want to bring that work in-house. Electrical engineering firms often want to acquire electrical contractors. Companies within the construction industry can cross-sell their customer base with yours, bringing out synergies and providing more expertise to the combined customers of both firms.

Also, the ideal buyer might be a private equity group that purchases construction companies. The idea is to get as many qualified buyers as possible to maximize your business' selling price.

Preparing Your Business for Sale

We will walk you through getting your business ready for sale and meeting with potential buyers. Though our team will consult with you privately to personalize areas to focus on, here are some general areas that are usually on the list.

  • Financial and operational review: Together, we will assess your business' financial health and ensure all records and tax returns are accurate and up-to-date. It is also necessary to review operational processes for efficiency, as streamlined operations attract buyers.
  • Legal and compliance check: It is a best practice to be aboveboard and compliant at all times, especially when you are considering selling your business. Address any pending legal matters and be sure all licenses, permits and contracts are current and transferable.
  • Update all documents: Focus on updating client contracts, supplier agreements and employee records.
  • Develop transition plans: Start planning for a smooth transition post-sale. Include strategies for how to deal with clients and make sure there is a good client relationship and employee onboarding. Create a support team and documentation for the transition period.

Confidential Marketing Campaign

Synergy Business Brokers has built a database of over 30,000 potential buyers. We provide a comprehensive marketing campaign that will also keep your business' sale confidential. We won't give the details about your company until a qualified buyer signs a confidentiality agreement. We have a wealth of experience in construction mergers and acquisitions. Our team engages with buyers who are actively seeking opportunities in your industry, including public and private companies, private equity groups and affluent entrepreneurs with keen interest.

We have a network of buyers in each specialized industry, including those looking to expand through acquisitions. We understand who is most likely to buy and who are the “tire kickers.” We'll weed out the ones that aren't serious, so you only spend your time on those that are most likely to close on the sale of your electrician business.

Negotiating the Sale and Closing the Deal

We'll work closely with you to assess and focus on the most promising potential offers if you have multiple options on the table. We will help you identify the ones that will net you the highest returns and success rate. The terms and conditions can sometimes be a sticking point for the seller and buyer. We can handle the process for you to ensure the buyer aligns with your financial expectations and needs.

Our approach in negotiating the sale and closing a deal is strategic, focusing on achieving the best possible outcome for you. We will help you through complex steps depending on the inclusions, accounts, inventory and what type of sale you want. It is about achieving a smooth and successful transition for you and your electrical contracting business.

Client and Employee Communications Strategy

Outline how and when you will inform your clients and employees about the sale. Timing is crucial to maintain trust and stability within the business. Consider what you would want to know if you were in their position.

In most cases, the employees are told about the sale right after the sale. Employee concerns might include job security and how the changes in management impact them and their daily work. Tell your employees you are happy to answer any questions they might have.

Clients will need reassurance that your company's quality and reliability will remain consistent during the transition phase. In most cases, clients don't need to be told immediately. This will allow you to personally reach out to long-term clients to inform them of the sale.  Be as transparent as possible while maintaining an open line of communication throughout.

Assemble a team to prepare an FAQ or information packet that addresses as many potential questions as possible for both employees and clients.

Contact Us to Sell Your Electrical Contractor

Are you ready to learn how we can sell your electrical business? Our commission depends on how much we get for you, so our goals align with yours. To find out more, contact us for a private consultation at 888-750-5950 or fill out and submit our simple online form.

 

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