Southeast Electrical Contractor Sold for $1.65M, 97% of Asking
Rachel Horner
⋅
2 min read
About the Business
Industry: Home Services – Residential & Commercial Electrical Contracting
Location: Southeast
Size: $1.5M–$2M in annual revenue, $400K–$500K in cash flow
Sale price: $1,650,000 (asking price: $1,700,000)
Listing to signed LOI: 46 days
Signed LOI to close: 151 days
The Challenge: Selling on an Upswing
The owners wanted to sell while the business was on a strong upswing, with one co-owner nearing retirement.
“We are at a season in our lives personally that we are open to part ways for the right buyer to take this company to the next level.”
46 Days to a Signed LOI: Repositioning After an SBA Rule Change
What happened at every stage
Valuation: The Baton advisor recommended trimming the asking price to $1.7M, about 3.9 times cash flow, before launch.
Buyer Outreach: 100+ buyers viewed the listing, 35 opened the data room, and the owners met with 7 buyers. When a new SBA rule barred the seller from staying on as the license holder after an SBA-financed sale, the Baton advisor repositioned the listing to keep other buyers in play.
Offer Selection and Negotiation Support: Buyers made four early offers and two written LOIs. The owners signed with an equity-funded investment partnership at $1.65M, 97% of asking.
Diligence and Closing Support: When the buyer kept giving only verbal funding updates, Baton required proof of funds within seven days or it would re-engage other buyers. Baton then ran weekly diligence calls through licensing and transition terms until close.
The Results
The buyer is a two-partner investment group that buys specialty-trade businesses, and this was its first acquisition. Through Baton's competitive process, the business:
Sold for $1,650,000, 97% of its $1,700,000 asking price
Was funded with investor equity, not an SBA loan
Closed with most of the price in cash at closing, plus a seller note and a contingent payment
What's next for the owners?
One co-owner is under a two-year agreement to stay on and support the new owners, while the other stepped away after a handoff of up to 90 days.
Advice and Lessons for Future Sellers
Sell on an upswing. The owners chose to list while the business was on an uptick instead of waiting.
Adapt when the rules change. Repositioning after the SBA rule change kept the sale on track.
Ask for proof, not promises. A firm proof-of-funds deadline kept the buyer accountable.