Looking at a 40+ year old electrical contracting business (I only have a one pager right now) with $3.8m in sales and $515k SDE (13% margins), asking price $1.7m (3.3x SDE).

Customer base of builders and homeowners, no concentration, and primary activities are residential wiring, home theater, smart home systems, LED light installs and recently added solar installation for commercial and residential.

Owner has been transitioning out for a few years and there is a management team of 5 key staff in place including a GM, project estimators and job supervisors, who would stay with the new owner.

I previously had not been considering the trades in my search, but thinking of speaking to the owner.

Curious if anyone has gone deep in a business like this and/or has any key questions that you'd ask in the first meeting? Do you think a trades business buyer need to be skilled in the trade? Opportunities for recurring revenue? Any insights appreciated!