Question 1

How much is my electrical business worth?

Accepted Answer

The value of an electrical contracting business is determined by a combination of factors, not just turnover. Buyers focus primarily on the profitability of the business (typically measured as net profit adjusted for the owner's salary, one-off costs and non-cash items), the quality and predictability of revenue, the strength of the team, and the capability of the business to continue operating without the owner being present every day. Businesses with a strong EICR testing book, ongoing maintenance contracts or framework agreements with landlords, housing associations or public sector clients are valued more highly than those dependent entirely on project work. Capability in EV charging installation or solar PV, backed by OZEV authorisation or MCS accreditation, tends to attract additional buyer interest and can support a higher price. The value will also depend on whether you own your NICEIC or NAPIT registration cleanly (i.e., you have a qualified supervisor who is an employee and not the owner personally), whether your financial records are well maintained, and whether you have a team that can continue delivering for clients after a sale. A qualified M&A adviser can help you understand what a realistic range of outcomes looks like for your specific business, and what steps, taken six to twelve months before going to market, could maximise the price achievable.

Question 2

How long does it take to sell an electrical contracting business?

Accepted Answer

From the point of formally engaging an adviser through to completion, the process typically takes between six and twelve months for a business of this size. In straightforward cases with a well-prepared seller, clean financial records and a buyer who has done similar deals before, it can move faster. More complex situations, such as multiple shareholders, property involved in the deal, or a buyer requiring external finance, can extend the timeline. The key stages are broadly: preparation and documentation (typically four to eight weeks), marketing to buyers (four to eight weeks to generate offers), preferred bidder due diligence (six to ten weeks), and legal completion (four to eight weeks). An experienced adviser will run these stages in parallel where possible to keep the process moving efficiently. The most common cause of delay is incomplete financial information or a seller being unprepared for the depth of due diligence that buyers carry out on compliance records, NICEIC documentation and historic contracts.

Question 3

What happens to my electricians after a sale?

Accepted Answer

In the vast majority of sales at this level, buyers are acquiring the business specifically because they want the team. Experienced, JIB-graded electricians with NICEIC qualifications and client relationships are the primary asset they are paying for. Most acquirers, whether a PE-backed platform, a larger contractor or a trade buyer, have every commercial incentive to retain the workforce and invest in it. Under UK employment law (the Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly known as TUPE), employees' existing employment contracts, terms and conditions, and continuous service transfer automatically to the new owner on completion of the sale. Buyers are required to consult with employees (or their representatives) before the sale completes. They cannot use a sale as an opportunity to change terms and conditions to the employees' detriment without consent. It is worth raising your team's concerns openly with your adviser early in the process. There are ways to structure communications and buyer selection that help protect the culture and team you have built.

Question 4

Do I need NICEIC registration to sell my business?

Accepted Answer

You do not need to hold NICEIC registration in order to sell your business, but the absence of registration, or a registration that is fragile or at risk, will significantly affect what buyers are willing to pay and may put some buyers off entirely. NICEIC Approved Contractor status (or NAPIT equivalent) is a commercial prerequisite for most framework work, public sector tendering, OZEV grant processing and housing association contracts. A buyer acquiring a business without it, or where the registration depends entirely on the owner personally (for example, where the owner is also the Qualified Supervisor and intends to leave), will factor the cost and risk of rebuilding that status into their offer. The strongest position for a seller is a business where the NICEIC registration is clean, the Qualified Supervisor role is held by an employee who will remain post-sale, and the most recent assessment visit raised no significant concerns.

Question 5

Do I need to stay on after the sale?

Accepted Answer

Whether you stay on, and for how long, depends on the nature of the buyer and the deal structure. Many buyers, particularly PE-backed platforms and larger trade acquirers, will ask the seller to remain involved for a period of six to twenty-four months to facilitate the handover of client relationships, maintain continuity of NICEIC-registered operations, and support the integration process. This is not a condition that buyers impose to trap sellers. It reflects the genuine risk that client and supplier relationships need careful transition, and that the team needs time to adjust to new ownership. In many cases, sellers find the handover period less onerous than they feared, particularly when a capable management team is already in place. Your adviser should negotiate the terms of any post-sale involvement, including remuneration, responsibilities and protections, as part of the deal structure.

Question 6

What fees will I pay to sell my business?

Accepted Answer

The fees for selling a business of this size typically comprise three elements. First, the adviser success fee: the primary adviser managing the sale process charges a success fee based on a percentage of the total consideration received. For businesses in the relevant size range, success fees typically sit between 2% and 5% of the sale price, depending on the adviser's model, the complexity of the deal and the level of service provided. Many specialist M&A advisers in this market work on a success-fee-only basis. Second, legal fees: your solicitor will charge for drafting and negotiating the sale and purchase agreement, disclosure letter, warranties and any ancillary documents. For a business of this size, legal fees typically range from 15,000 to 50,000 pounds depending on the complexity of the deal. Third, accountancy fees: if you require a formal financial information memorandum, quality of earnings report or vendor due diligence work, your accountant will charge for this separately.

Question 7

How do I sell to a group like Wates or M Group Services?

Accepted Answer

The large infrastructure groups, FM companies and PE-backed platforms do not typically buy businesses through auction websites or general business brokers. They acquire businesses through three main routes. First, existing relationships: the acquirer's development team has been monitoring your business, perhaps because you work for them as a subcontractor, sit on the same frameworks, or have been introduced through a mutual contact. Second, proactive outreach from a specialist adviser: when you appoint a sell-side M&A adviser who knows the electrical sector and has direct relationships with corporate development teams at Wates, M Group, Apleona and similar groups, they will approach those buyers directly and confidentially on your behalf. A good adviser will know which groups are actively acquisitive, what their current priorities are and how your business fits their stated criteria. Third, responding to an inbound approach: sometimes a buyer will approach you directly. If you receive an inbound approach, it is important to take independent advice before engaging, as buyers approaching you directly have done their homework and will use the information advantage they have.

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