Deal BreakdownMar 14, 2026
The $100K Mistake That Kills This Deal
At first glance this electrical contracting company looks like a solid deal. But...
Strong margins, strong cash flow, and a reasonable price. Deals like this don’t show up often, especially in trades.
This is an electrical contracting business in Tampa, Florida generating about $1.43M in revenue and $483K in cash flow.
Trades like this are already attractive because demand is consistent and difficult to replace. But what makes this one stand out is how clean the numbers are.
Everything lines up in a way that most deals don’t.
Deal Snapshot
IndustryElectrical & Trade Services
Asking Price$1,009,557 (Total Acquisition Cost)
Cash Flow (SDE)$483,000
Profit Margin33.74%
LocationTampa, FL
Revenue$1,430,000
Cash Flow Multiple2.05x
Now let’s run this through a standard SBA-style financing scenario.
Financing Reality Check
Down Payment$100,955 (10%)
Annual Debt Service$144,086
Post-Debt Cash Flow$338,624
Loan Amount$908,601
DSCR3.35 (extremely strong)
After debt, you are left with roughly $339K in annual cash flow. That is more than enough to justify the purchase at this price point.
Even more important, the deal has a very large margin for error.
Why This Works
This deal works because all three core drivers are aligned. Margin, valuation, and financing strength.
The 33.7% margin is well above the industry average, which gives you protection against labor changes, slow periods, or unexpected costs.
At the same time, the 2.05x multiple is slightly below market. You are not overpaying for those strong earnings.
And with a DSCR of 3.35, the debt is easily covered. That combination is what makes a deal durable.
What Stands Out
- Strong post-debt cash flow: ~$339K annually.
- High margins: ~34%, well above industry average.
- Attractive valuation: Below industry average multiple.
- Excellent DSCR: 3.35 provides a large safety buffer.
- Recession-resistant trade: Electrical services remain in demand.
Potential Risks
- Operator dependency: May rely on owner or key technicians.
- Labor availability: Skilled electricians can be difficult to hire.
- Customer concentration: Not disclosed but common in contracting businesses.
- Project variability: Revenue can fluctuate based on job pipeline.
BizHub Verdict
This deal scores an 8.5 / 10. Strong profitability, fair pricing, and excellent financing metrics.
This is the type of deal that not only looks good on paper but also has enough margin and structure to hold up after you buy it.
Deals like this are rare because they do not rely on assumptions. The performance is already there.
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Compare with Electrical And Mechanical Contracting benchmarks
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