On paper, this looks like a solid trades business. But once you account for pricing and licensing reality, the deal starts tightening fast.
This is a 36-year-old electrical and air conditioning business in Florida, with reported figures of about $1.7M asking price, $420K in cash flow, and $2.2M in revenue. That kind of longevity usually gets buyers comfortable fast.
And that is exactly the danger here. Skilled trades businesses often look safer than they really are because the services are essential and demand feels durable.
But essential does not mean underpriced. And if the buyer does not personally hold the required licenses, the economics can shift quickly.
Deal Snapshot
Let’s run it through a standard SBA financing scenario first.
SBA Scenario (Before License Adjustment)
That number is already a little light for a $1.7M acquisition. But now comes the real problem.
If you do not personally hold the required trade licenses, you may need to hire a qualified operator or license holder. Add a conservative $100,000 for that, and the post-debt cash flow drops to roughly $62,000 per year.
What Stands Out
- Long operating history: A 36-year track record gives the business credibility.
- Essential services: Electrical and AC work benefits from ongoing demand.
- Decent scale: Over $2.2M in revenue shows this is not a tiny owner-operator shop.
- Initial SBA math works: Before adjustments, the deal can appear financeable on paper.
Potential Risks
- Aggressive valuation: At just over 4x cash flow, the business is priced above typical industry norms.
- Below-average margins: Roughly 19%, which is thinner than what buyers usually want in contracting.
- License holder risk: If the buyer lacks the required credentials, hiring a licensed operator can crush real returns.
- Low adjusted cash flow: After debt and a license-holder salary, the buyer may be left with only about $62K.
- No room for mistakes: In skilled trades, labor issues, callbacks, and project overruns hit thin-margin businesses hard.
BizHub Verdict
This deal scores a 5.3 / 10. Not because skilled trades are bad, but because this one is priced aggressively while running thinner than it should.
This is the kind of business that can fool buyers into feeling safe because the industry is strong and the operating history is long. But once you pressure test valuation, margin, and licensing reality, the cushion disappears.
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