Two of American history’s most famous inventors, Thomas Edison & Nikola Tesla, “flipped the switch” as entrepreneurs creating the electrical power industry approximately 150 years ago (https://www.history.com/news/what-was-the-war-of-the-currents). Their scientific creations planted seeds in an economic garden that has grown substantially in size and diversity as the needs of society evolved from the 1870’s to today. The two iconic figures would be amazed to see the increasing prevalence of electrical cars on the road, anticipated to be 25 – 30% of new car purchases by 2030 (https://www.caranddriver.com/news/a39998609/electric-car-sales-usa/), solar power electrical generation at a commercial (https://www.fastcompany.com/90523888/at-mcdonalds-new-net-zero-energy-restaurant-on-site-solar-provides-100-of-the-power) & residential level (https://smartasset.com/mortgage/sell-electricity-back-grid), and the life span of the common light bulb (https://www.inlineelectric.com/lifespan).
IBA as the oldest business brokerage firm in the innovative, environmentally forward-thinking Pacific Northwest and a company with a transactional emphasis on representing business owners in the construction, industrial, and manufacturing sectors has an unique level of knowledge & experience facilitating sales involving businesses with an electrical component.
Recent transactions facilitated by IBA in this space have ranged from Plastics for Lighting (https://www.plasticsforlighting.com/) to Washington Generators (https://www.washingtongenerators.com/) to US Electric (https://uselectric.com/). Current electrical niche sell side representation projects in IBA’s pipeline include companies with customers seeking skilled installation & support services for commercial, industrial, agricultural, auxiliary power, residential, and solar power applications and retail/distribution companies supporting the sector. Several of these companies are currently available for purchase, others are being staged for sale in 2023. Parties with an interest in acquisitions in this space are encouraged to be part of IBA’s Buyer Database Program (https://ibainc.com/buy-a-business/), as that is the only way to ensure early exposure to IBA’s exclusive listings.
If you are a business owner interested in exploring the potential sale of your electrical industry business, the members of our transaction team specializing in the sale of privately held companies and family businesses in this sector in Washington, Oregon, Alaska, or Idaho would welcome the opportunity to meet with you and provide an overview of our client services. All communication with IBA is held in strict confidence. The successful sale of an electrical industry company requires significant knowledge, experience, and skill. Relevant issues to address include facilitating a transaction in a confidential environment, so customers, employees, and vendors, do not become aware of the potential sale prior to a desired time for disclosure. This is especially important currently given the importance of employee retention for the present and future business owner given the tight labor market in the industry. Additional issues for an intermediary to address encompass who will serve as a successor holder of the electrical administrator’s credential; maintaining appropriate licenses and important vendor/customer agreements; and L&I retro rebate continuity.
Future revenue generation opportunities for entrepreneurs providing components and services for the public sector, commercial, & consumer electrical spaces are significant. Over $2 trillion is estimated to be spent rebuilding the United States electrical grid (https://www.reuters.com/investigates/special-report/usa-renewables-electric-grid). $7.5 billion was allocated in the recently passed infrastructure bill to build out the electric vehicle charging station infrastructure nationally ( https://www.mckinsey.com/industries/public-and-social-sector/our-insights/building-the-electric-vehicle-charging-infrastructure-america-needs). The desire for residential auxiliary sourced electrical power options are going to become more common as the probability of rolling electrical grid shut downs is enhanced ( https://www.bbec.org/are-rolling-blackouts-in-washingtons-future/). Successful entrepreneurship requires vision, resources, and execution.
One person who possessed all of those attributes in the electrical industry was Robert Kern, who started manufacturing portable generators for farmers and construction crews in 1959. His company, Generac, would eventually sell for over a billion dollars. A leader in many ways, he used the proceeds from the sale to fund programs encouraging young people to study science, math, and engineering and support the Mayo Clinic. Unfortunately, Mr. Kern passed away this November (https://biztimes.com/generac-founder-philanthropist-robert-kern-dies-at-96/). He definitely lived the American Dream over his nearly 100-year life. The question is who at the turn of the next century will be remembered equally for their achievement as an electrical sector entrepreneur.
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, and mergers & acquisitions community on subjects relevant to the purchase & sale of privately held companies and family-owned businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.