Electrical Contracting M&A

Public consolidators

Quanta Services, EMCOR, and Comfort Systems USA are each buying electrical contractors. EMCOR bought Miller Electric, and Quanta bought Phalcon, a Farmington, Connecticut electrical contractor. MasTec agreed to buy The Superior Group, an electrical contractor focused on data center and mission critical work, for $1.65 billion.

Private equity and mechanical contractors

Private equity firms are funding regional electrical platforms and adding contractors to them. Mechanical contractors are buying electrical contractors so they can offer both trades.

Data centers and beyond

Data centers drive much of the demand. McKinsey projects that global demand for data center capacity could roughly triple by the end of the decade. On an EMCOR earnings call, CEO Tony Guzzi said EMCOR would rather buy a strong industrial or healthcare electrical contractor and grow it into data centers than pay a premium for a company doing 80% of its work in data centers.

An advisor who has sold his own company

Andrew Williams co-founded a family business, ran it as COO and sold it. He brings more than 18 years of M&A experience and an engineering degree from Michigan State.

Relationships with the buyers

We talk with the corporate development teams at five public companies that buy electrical contractors, and with the private equity firms building electrical platforms. We meet them at NECA and ACG events.

Your numbers ready before buyers test them

Our Real Market Analysis is a deep dive into your company and customer mix. We recast your EBITDA, compare your margins with industry benchmarks, and look at what similar companies have sold for, so you see what buyers will see. Most are completed in three to four weeks.

Reach beyond your region

Through the Cornerstone International Alliance, more than 200 M&A advisors at our partner firms bring in buyers from other regions and countries.

Contractors

• Commercial and industrial electrical contractors
• Service and maintenance contractors
• Low voltage, data and security contractors
• Life safety and detection system installers
• Solar, EV charging and backup power contractors
• Utility, line and underground contractors

Owners

• Founders planning their retirement
• Partners who want to exit on different timelines
• Second-generation owners deciding what comes next
• Owners holding an unsolicited offer

Licensed crews

Journeymen, apprentices, and the training pipeline behind them. Buyers ask how many electricians will stay after the sale.

Service revenue

Service calls and maintenance agreements repeat every year, so buyers value them above one-time project revenue.

End markets

Data center, healthcare, and industrial customers draw more buyers than work tied to housing starts.

Customer mix

No single customer or general contractor should carry the business.

Backlog and WIP

Signed backlog at healthy margins, and a WIP schedule that ties to the financial statements.

Margins and growth

EBITDA margin and steady growth set the starting point for price.

Management

A team that can run jobs, bid work, and manage customers after the owner steps back.

Andrew Williams, CEPA, CM&AA

Vice President

Andrew advises electrical and specialty contractors on sell-side transactions at Cornerstone. He has more than 18 years of M&A experience, including senior investment banking roles at middle market advisory firms. He co-founded a family business, served as its COO, and sold it. He wrote Second Wave Life and Don’t Leave Life on the Table, two books on preparing owners for life before and after a sale. He is a Certified Exit Planning Advisor, a Certified Merger & Acquisition Advisor and a former EOS Implementer. He holds FINRA Series 82, 79 and 63 licenses and an engineering degree from Michigan State.

awilliams@cornerstone-business.com · 920-436-9890

Full bio · LinkedIn

Charles Dallas, CPA

Vice President

Chuck advised AC Energy Systems, Inc., a California installer and servicer of carbon monoxide detection systems, on its sale to Castle Capital. He has advised on transactions in agriculture, manufacturing, industrial services, testing and compliance, and distribution. Earlier in his career, he held leadership roles at Genex Cooperative, which grew from about $21 million to more than $250 million in revenue during his tenure. He has served on the boards of CoVantage Credit Union and ThedaCare, and he is a Certified Public Accountant.

cdallas@cornerstone-business.com · 920-436-9890

Full bio · LinkedIn

Dan Hansher, MBA

Investment Banking Associate

Dan works with Andrew on Cornerstone’s electrical contracting engagements, from the Real Market Analysis through the sale. He has completed more than 200 business valuations. He directs the financial analysis, buyer outreach and due diligence, and coordinates the owner, buyers, attorneys and accountants through closing. Before Cornerstone, he held leadership roles at a $900 million global adhesives distributor and manufacturer and a $6 billion publicly traded industrial manufacturer. On the buyer’s side, he led the marketing integration of 22 brands after Regal Rexnord’s $5 billion acquisition of Altra Industrial Motion. He holds an MBA from the University of Wisconsin-Whitewater.

dhansher@cornerstone-business.com · 920-436-9890

Full bio · LinkedIn

85%

Close rate

5-year average, vs. 53% for other M&A firms and 20% for owners who sell without an advisor*

24 to 26%

Premium above target

average increase above the target price

8 to 10

Offers per deal

average indications of interest

25 years

In the market

advising lower middle market business owners