How much is an electrical business worth?

A typical small electrical business is worth between 0.3-0.8x annual revenue or 2-4x annual net profit. A sole trader earning £80k revenue might be valued at £30k-£65k. A firm with £250k revenue and £50k profit could be worth £100k-£200k. Factors like customer base, reputation, and certifications affect the multiple.

Which valuation method is more accurate?

For trade businesses, the profit multiple method is generally more relevant because it reflects actual earnings. Revenue multiples are useful as a cross-check. Professional valuers typically use a weighted blend of both, plus asset value.

How can I increase my business value?

Focus on building recurring revenue (maintenance contracts), documenting your processes, growing your customer database, maintaining certifications, and ensuring your business can operate without you personally. These factors increase the multiple buyers will pay.

Do I pay tax when I sell my electrical business?

Usually yes: you pay Capital Gains Tax on the gain. Many trade owners qualify for Business Asset Disposal Relief (formerly Entrepreneurs' Relief), which taxes qualifying gains at a reduced rate up to a lifetime limit, subject to conditions. Rates and limits change, so speak to an accountant before selling.

Does being a sole trader or limited company affect the value?

It affects what is actually sold. A limited company can be sold as shares (the whole entity, including contracts and track record), which buyers often prefer. A sole trader sells the assets, goodwill, and customer base. The business is harder to separate from you personally, which typically lowers the multiple. Recurring contracts and transferable customer relationships matter more than the legal structure.

Free Business Valuation Calculator

Estimate the value of your electrical business using revenue multiples and profit-based methods. Useful for selling, buying, or planning.

This business valuation calculator gives electricians a rough estimate of their business value using two common methods: revenue multiple and profit multiple. It is not a substitute for professional valuation, but it gives you a useful starting point for planning, partnership discussions, or preparing to sell.

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Business Valuation Calculator results

Fill in the details and select Calculate to see your figures.

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Tradehand is the software your trade business runs on, with an assistant that answers every call and message, sends your quotes the same day and chases them until they land. The first £10,000 Tradehand collects for a business carries no Tradehand fee. After that, Tradehand earns 5% of collected invoice payments. No monthly fee, setup fee, card fee or contract.

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How to use the Business Valuation Calculator

1Enter your annual revenue (total turnover) and net profit (after all expenses including your own salary or drawings).
2Add the market value of your business assets: vans, tools, stock, and equipment.
3Adjust the revenue multiple (typically 0.3-0.8x for trade businesses without strong recurring revenue).
4Adjust the profit multiple (typically 2-4x for trade businesses).
5Review the three valuations. The midpoint gives a reasonable estimate for planning purposes.

How the Business Valuation Calculator works

A business valuation for most small trade businesses comes down to a multiple of profit. First adjust profit to Seller's Discretionary Earnings (SDE), net profit plus the owner's salary and any personal expenses run through the books, then apply an industry multiple.

Valuation = adjusted annual profit (SDE) × industry multiple

Net profit is £40,000, and you pay yourself a £30,000 salary through the business.
Adjusted profit (SDE) = £40,000 + £30,000 = £70,000.
A settled electrical firm with some repeat work sells at roughly 3× SDE.
Valuation ≈ £70,000 × 3 = £210,000, before adjusting for assets, contracts, and owner-dependence.

The multiple rises with recurring maintenance contracts, a business that runs without the owner, and clean documented accounts; it falls when most work walks out the door with you. This is a planning estimate. A broker or accountant will value the specifics.

Typical UK benchmarks

Typical Trade Business Revenue Multiple	BizStats UK 2024 (0.5x shown as 50%)
Typical Trade Business Profit (SDE) Multiple	BCMS / UK200Group SME deal data 2024 (~3x, shown as 300%)

Disclaimer

This tool gives an estimate for general guidance only, based on typical UK figures and the details you enter. It is not a formal quote, survey, or professional advice. Always confirm with a qualified tradesperson before relying on any figure, as regional prices, site conditions, and current standards vary.

You do the job, Tradehand handles everything around it.

Your assistant sends the quotes, chases the invoices, books the work and keeps your customers updated. The first £10,000 Tradehand collects for a business carries no Tradehand fee. After that, Tradehand earns 5% of collected invoice payments. No monthly fee, setup fee, card fee or contract. One office hire costs about £25,000 a year, whether the invoices land or not.

Source: Office manager salary, National Careers Service

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Frequently asked questions

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