Commercial electrical contractor, service contract book, two master licenses
§ 01 · Observed
What was documented in diligence.
Service contract list provided with customer names, annual values, and 3-year renewal history. Renewal rate 88% on commercial maintenance book. Two master electricians on staff as W-2 employees — both licensed independently of the owner in the operating jurisdiction. Owner billable-hour log showed 8 hours per week; replacement labor normalization reduced SDE by $22,000. Project revenue reconciled against cash collections — percentage-completion gap less than 4% in trailing 12 months. EV installation pipeline excluded from SDE at seller and buyer agreement.
§ 02 · Outcome
What happened.
Signed at 4.1× SDE. Lender-adjusted DSCR 1.27× after owner-labor normalization. Closed without repricing.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Upper-band placement driven by commercial service contract depth, documented renewal rates, and license continuity that does not depend on the exiting owner. The EV pipeline exclusion from SDE removed the most common top-of-band justification that does not survive lender scrutiny.
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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