Residential service contractor, owner holds master license, one journeyman
§ 01 · Observed
What was documented in diligence.
Owner billable-hour log confirmed 28 hours per week of direct service work. Replacement labor normalization at $95/hour fully loaded reduced SDE by $138,000 on a $380,000 stated SDE — a 36% reduction. Master license: owner is the only qualifying credential in the jurisdiction; continuity plan requires a journeyman to sit for master exam (estimated 4–6 months). Backlog schedule contained two projects listed as "committed" that had unsigned proposals only — excluded from forward revenue. Percentage-completion reconciliation showed 11% gap between P&L and cash collected.
§ 02 · Outcome
What happened.
Initial ask 3.9× stated SDE. After replacement-labor normalization, buyer repriced to 3.1× adjusted SDE. Lender required written license-continuity plan before credit approval. Closed at 3.1× with 90-day post-close license transition structure.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Mid-band placement reflects the owner-electrician concentration and single-license transferability risk. Normalization repriced the deal materially. License continuity structure was the primary closing condition requiring resolution — consistent with the most common fundability friction in this vertical.
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.
Industry Atlas
See the band this listing sits against →
Underwriting Playbook
Four-pillar framework →
All scored listings
Index →