What's an Electrical Business Worth in Australia? Small vs Scaled Up

What's an Electrical Business Worth in Australia? Small vs Scaled Up

Richard MatthewsRichard Matthews — Business Broker, Link Business NSW·Apr 16, 2025·4 min read

Electrical businesses in NSW and VIC range from sole operators worth under $100,000 to scaled commercial contractors worth 3–4× EBITDA. The difference is not the revenue — it is whether the business runs without the owner holding the licence, managing the quotes, and supervising every job.

What the market is paying

Business typeTypical multipleKey driver
Sole operator, residential, no staffUnder $100k goodwillNot a transferable business
2–5 electricians, owner on tools + managing, residential1.5–2.0× EBITDAKey-person risk
5–15 electricians, commercial focus, owner managing2.0–3.0× EBITDACommercial relationships + scale
Established commercial/industrial, licensed staff, systems3.0–4.0× EBITDARecurring commercial work + transferable operations

The electrical licence and its complications

An electrical contractor licence in NSW and VIC is held by a licensed electrician. If the owner holds the licence personally, the buyer needs to either hold their own licence or employ a licensed electrician to take over the contractor licence. This is manageable — but it is a structural issue that affects the buyer pool and the transition plan.

Businesses where the contractor licence is held by an employee (not the owner) are significantly more attractive to buyers, because the licence does not leave with the owner at settlement.

Commercial vs residential: the multiple gap

Commercial electrical work — fit-outs, industrial maintenance, data and communications, switchboard upgrades — attracts a higher multiple than residential service work. Commercial clients are repeat, the work is larger, and the relationships are more transferable. A business with 70%+ commercial revenue will consistently achieve a higher multiple than one that is predominantly residential.

Data and communications: the growth premium

Electrical businesses that have built a data and communications capability — structured cabling, network infrastructure, security systems — are attracting premium interest from buyers. This work is growing, the margins are better than standard electrical, and the skill set is harder to replicate. If your business has this capability, make sure it is clearly documented in your information memorandum.

NSW and VIC: where the deals happen

Western Sydney (Parramatta, Blacktown, Penrith), the Hunter Valley, and Melbourne's industrial west (Dandenong, Laverton, Sunshine) are the primary markets for electrical business sales. Buyers include trade acquirers, private equity-backed services platforms, and owner-operators stepping up from smaller operations.

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