Electrical M&A Advisory | Sell-Side Advisory for Canadian Electrical Contractors
Strategic M&A Advisory for Canada’s Electrical Contracting Sector
Windsor Drake is a Canadian mergers and acquisitions advisory firm that provides full-service, institutional-grade sell-side M&A representation to privately held electrical contracting companies across Canada. With offices in Toronto and Halifax, our senior-led team specializes in advising owners and shareholders of electrical services businesses as they navigate exits, recapitalizations, or generational transitions.
Our engagements are discreet, buyer-driven, and built to investment banking standards. Whether you are a founder-led firm focused on commercial construction, a multi-trade contractor with recurring maintenance contracts, or a specialty electrical integrator in the industrial or utility space, Windsor Drake structures and executes transactions designed to unlock maximum enterprise value.
Why Electrical Companies Are Attractive M&A Targets
The Canadian electrical contracting industry is undergoing rapid consolidation. Aging ownership, labor shortages, regulatory complexity, and increasing demand for energy-efficient infrastructure have created a highly active market for M&A. Key transaction drivers include:
Private equity firms rolling up multi-trade contractors
National and regional strategic buyers expanding geographic footprint
Demand for energy, EV charging, and smart building infrastructure
Succession-driven sales across independently owned firms
According to data from Statistics Canada (https://www.statcan.gc.ca/) and industry publications such as Electrical Business Magazine, the demand for skilled trades services is outpacing the supply of successors, making well-run electrical contracting firms highly sought-after by buyers.
What Is Electrical M&A Advisory?
Electrical M&A advisory is the process of preparing, positioning, marketing, and negotiating the sale or recapitalization of an electrical contracting business. As a sell-side advisor, Windsor Drake manages every stage of the transaction lifecycle, including:
Exit readiness planning and valuation
Preparation of investor-grade marketing materials
Discreet outreach to strategic and financial buyers
Term sheet negotiation and structuring
Coordination of diligence and legal documentation through close
Our process is designed to maximize value, preserve confidentiality, and create leverage with multiple buyers.
Who We Advise
We represent a wide range of electrical businesses across Canada, including:
Commercial and institutional electrical contractors
Industrial, heavy power, and utility subcontractors
Residential wiring and service providers
Design-build electrical contractors
Multi-trade firms combining electrical, HVAC, and fire protection services
Typical engagement profile:
$5M–$150M in annual revenue
$1M–$15M in normalized EBITDA
Mixture of project-based and recurring service revenue
Clean corporate structure and strong operational controls
Experienced field teams and safety documentation
Clients include founder-led companies, family businesses, and private equity-backed operations seeking liquidity or strategic alignment.
Windsor Drake’s Electrical M&A Process
1. Strategic Discovery and Exit Planning
We begin with a confidential discovery session to assess:
Shareholder goals and timeline to exit
Business structure and ownership
Financial history, backlog, and growth trajectory
Organizational depth and operational maturity
We deliver a customized roadmap aligned to your personal and financial objectives, supported by data on current M&A market conditions.
2. Valuation and Market Positioning
We determine a defensible market valuation based on:
Comparable industry transactions
EBITDA normalization and margin stability
Revenue mix across service, construction, and maintenance
Geographic reach, customer base, and project backlog
Our go-to-market materials include:
Confidential Information Memorandum (CIM)
Adjusted financial model with labor and margin breakdowns
Document checklist and diligence data room
Buyer list segmented by strategic, private equity, and cross-border acquirers
3. Buyer Outreach and Qualification
We manage a confidential outreach process targeting:
National and regional electrical and MEP (mechanical, electrical, plumbing) firms
Private equity-backed consolidators and platforms
Cross-border buyers expanding into Canadian markets
Infrastructure-focused funds investing in energy systems and smart building solutions
Outreach is conducted under NDA, and all buyer interactions are tightly controlled to protect your business.
4. Negotiation of Letter of Intent (LOI)
We solicit and negotiate multiple offers, focusing on:
Purchase price and total enterprise value
Earnouts, equity rollover, and seller financing terms
Employment or consulting arrangements for founders post-close
Share vs. asset deal structuring
We manage buyer competition to maximize leverage and optionality.
5. Due Diligence and Closing
We coordinate diligence and legal documentation with your legal and accounting teams:
Job costing, backlog validation, and WIP analysis
WSIB, insurance, and safety records
Licensing, bonding, and subcontractor compliance
Real estate, equipment, and fleet documentation
Our role is to manage timeline, structure risk mitigation, and ensure a smooth close.
Valuation Drivers in Electrical M&A
Buyers assess electrical contractors based on:
Adjusted EBITDA and cash flow consistency
Mix of project vs. recurring revenue (e.g., service, maintenance)
Workforce quality, crew scalability, and management depth
Safety record, certifications, and licensing
Customer relationships and diversification
Operational systems (estimating, dispatch, accounting, field tech enablement)
Typical valuation ranges:
4.5x–6x EBITDA for project-based contractors
6x–8x EBITDA for firms with long-term service contracts and multi-trade capabilities
8x–10x+ EBITDA for scalable platforms with high recurring revenue and regional scale
Trends Driving Electrical M&A Activity
PE-backed MEP platforms acquiring electrical firms for geographic growth
Consolidation in energy and infrastructure contracting
Growing demand for EV charger installation and energy upgrades
Government funding driving new institutional project demand
Aging ownership base across trades with limited succession options
Windsor Drake actively monitors industry deal flow, buyer mandates, and valuation comps in the Canadian electrical sector.
Why Windsor Drake
Trades Sector Expertise: We understand labor cost structure, backlog risk, and field-based revenue dynamics
Buyer Access: Our network includes the most active strategic and financial acquirers in the MEP space
Full-Service Execution: We manage every aspect of the transaction—strategy, negotiation, diligence, and legal coordination
Institutional Discipline: We operate with the structure, process, and discretion of a top-tier investment bank
Legal & Tax Considerations in Electrical M&A
Electrical business owners must carefully plan for:
Asset vs. share sale tax treatment
CRA compliance and capital gains exemption (LCGE)
WSIB status and safety compliance
Transfer of union or subcontractor agreements
Real estate and fleet ownership or lease structure
Windsor Drake collaborates with your legal and tax advisors, or introduces transaction-experienced professionals to support a seamless close. See: https://www.canada.ca/en/revenue-agency/services/tax/businesses.html
FAQs
How long does the sale process take?
6 to 9 months from mandate to closing, depending on business size and deal complexity.
Can I stay involved after the sale?
Yes. Many sellers remain for a defined transition period or take a consulting role.
What if I want to retain real estate?
We can structure a sale-leaseback agreement that allows you to keep ownership of property.
Do I need audited financials?
No. Reviewed financials and proper normalization are sufficient for most transactions.
Can I sell only part of the business?
Yes. We also structure minority recapitalizations with equity rollover.
Begin the Conversation
If you are an owner or shareholder of an electrical contracting business in Canada and are considering a sale, recapitalization, or transition, Windsor Drake delivers the strategic guidance, process control, and buyer access to help you achieve an exceptional outcome.
We help:
Position your business to attract top-tier acquirers
Maximize enterprise value with a structured, competitive process
Navigate complex negotiations and protect your legacy
Windsor Drake | M&A Advisory for Canada’s Electrical Contracting Sector