Dru and Gold Coast Business Broker Belinda Packer recently caught up to discuss selling an electrical business in Australia. Having taken part in multiple transactions over her career, Belinda is a wealth of knowledge for prospective sellers. A few key takeaways were:

Sale Price Maximisation – Multiple Revenue Streams

Buyers of commercial electrical buyers typically seek a mix of both project and maintenance work. This is advantageous as they get the upside of lucrative projects but also the stability of recurring maintenance work which makes them feel more comfortable that they’ll get a return on their investment.

Deal Structure – Share Sale

Most larger electrical transactions are conducted as a share sale instead of a standard business asset sale. This makes the acquisition much more appealing as client and employment contracts will change hands without any effort or risk.

Important Consideration – Licenses

In many circumstances, the key license holder in an electrical business is the owner who is looking to sell. This is far from ideal when going to market as it means the buyer may need to licensed themself or have to hire a suitable party. The best situation is when a management team who will stay with the business after the acquisition are the key license holders.

Buyer Profile

The most common acquirer of electrical businesses in the current market is industry buyers who are looking to either enter a new geographical market or expand their existing profile.

Would you like to have a confidential discussion about taking your electrical business to market? Book a complementary consultation today.