Project-focused electrical contractor, single owner-held license, large project distorting SDE
§ 01 · Observed
What was documented in diligence.
Revenue breakdown: 91% project work, 9% service calls. No maintenance contracts. The single $620,000 project represented 41% of trailing 12-month revenue; excluding it reduces revenue to prior-year levels. Owner performs all permit pulls and inspections personally. No other master license on staff or under employment. Percentage-completion reconciliation showed $68,000 of P&L revenue not yet collected in cash at LOI date. Owner confirmed zero backlog after project completion.
§ 02 · Outcome
What happened.
Buyer submitted LOI at 3.2× trailing SDE. After project normalization and owner-labor add-back, adjusted SDE dropped 61%. Deal terminated — repriced multiple on adjusted SDE exceeded 8×, outside any fundable structure.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Lower-band conditions on all four pillars: single large project distorting SDE, single owner-held license with no continuity path, no recurring revenue base, and owner performing all licensed work. Multiple paid was calculated on an inflated trailing period that does not represent the ongoing business.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
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