The electrical business acquisition market in 2026.
A clear view of valuations, buyers, and the forces shaping the sector.
EV charging infrastructure is reshaping the sector.
The UK's public EV charging network kept growing in 2025, reaching 116,052 chargers by Jan 2026, although fewer were added than in 2024. Electrical contractors with the skills, accreditations, and capacity to deliver commercial and destination charging installations have work a buyer can see.
For buyers, acquiring a business that already has EV charger installation capability is faster and cheaper than building it from scratch. Retraining electricians takes time away from paid work, and practical experience on live sites is difficult to replicate. A record of EV charging installations, and a team qualified to deliver them, is something a buyer can check.
Private equity is buying electrical businesses.
Groups backed by private equity, investment firms that buy companies to grow and sell on, have been buying UK electrical and building services businesses, including platforms that grow by acquisition. About 56,100 active companies in electrical installation are on the Companies House register.
Whoever the buyer is, expect questions about:
- Recurring maintenance contracts providing predictable revenue
- Qualified electricians and current NICEIC or NAPIT registration
- Geographic density within their target regions
- Professional management and systems in place
- EV charger installation capability and ECA membership
For independent owners, more kinds of buyer can mean more competition for a well-prepared business. Being ready matters more than trying to time the market.
An illustrative worked example.
To illustrate how valuations work in practice, here is an illustrative example, not a record of any one sale.
Example Electrical Business Profile
What pushes towards 5x: NICEIC approval, active EV charger installation capability, and ECA membership demonstrate future-readiness. Little reliance on the owner means the business runs without the seller. Strong recurring contract base provides predictable revenue for the buyer.
What pushes towards 4x: Geographic spread across a wide area reduces route density. Heavy reliance on a single large client introduces concentration risk. Limited EV charger installation capability may require buyer investment in electrician retraining.
Every business is different. This example illustrates the methodology, not a promise. Your valuation depends on your specific circumstances.
The BADR rate change: why timing matters.
Business Asset Disposal Relief (BADR) gives a reduced rate of Capital Gains Tax, the tax on the gain you make when you sell, on qualifying gains up to a lifetime limit of £1 million. The rate has gone up in stages, and rose to 18% in Apr 2026.
| Before Oct 2024 | Oct 2024 to Apr 2025 | Apr 2025 to Apr 2026 | From Apr 2026 | |
|---|---|---|---|---|
| BADR Rate | 10% | 10% | 14% | 18% |
| Tax on £500K gain | £50,000 | £50,000 | £70,000 | £90,000 |
| Tax on £1M gain | £100,000 | £100,000 | £140,000 | £180,000 |
These are simplified illustrations. Capital Gains Tax calculations depend on your personal circumstances. Always take advice from your accountant.
The rate change is legislation, not speculation. For a £500,000 gain, the difference between 14% and 18% is £20,000. For a £1 million gain, it is £40,000. The 18% rate has applied since Apr 2026 and is still well below the 24% main rate, so if you are already considering a sale, check with your accountant that you qualify before you start.
Find out what your electrical business is worth.
Start with a free first conversation with Simon or Emily, in confidence. The paid Business Value & Exit Snapshot is a written, indicative view of value, and what to fix first.
Net zero, EV charging and the testing cycle are reshaping the sector.
Groups backed by private equity, investment firms that buy companies to grow and sell on, have been buying UK electrical and building services businesses. The UK's public EV charging network reached 116,052 chargers by Jan 2026, and since Nov 2025 the five-yearly electrical inspection rule for rented homes in England has covered social housing as well as private lets. In April 2026 the tax rate under Business Asset Disposal Relief (BADR), the relief for owners selling a business they work in, went up, so owners who sell now keep a little less of the sale than those who sold before.
Sources: Companies House, October 2026; Department for Transport, EV charging statistics, January 2026; GOV.UK, electrical safety standards guidance, November 2025; GOV.UK, Business Asset Disposal Relief.
Market Context
Active companies in electrical installation: About 56,100
Source: Companies House, October 2026. Sole traders and partnerships are not counted.
Public EV chargers: 116,052 at Jan 2026
The Department for Transport counted 116,052 public EV chargers in the UK at Jan 2026, 13,281 more than a year earlier. The government's Local EV Infrastructure (LEVI) Fund is a £343m capital fund for local charge points.
NICEIC certification: Held by the business, normally reassessed every year
NICEIC certifies the business, not the electrician, and normally reassesses it every year. As a competent person scheme, it lets registered installers self-certify notifiable work in homes instead of getting building regulations approval.
Public sector frameworks: A place on a framework is access, not work
A framework place lets you bid for work from public bodies over its term. A buyer will check which places can pass to a new owner and how much work has actually come through them.
BADR Rate Change: 18% since Apr 2026, up from 14%
Business Asset Disposal Relief rose from 14% to 18% in Apr 2026. The relief covers up to £1m of qualifying gains over a lifetime, so the rise costs at most £40,000 more tax. Owners considering a sale now plan around the 18% rate, which is still below the 24% main rate.
Discuss the market with a sector specialist.
Tell us about your business and we will be in touch within two working days.
Thank you for getting in touch.
Simon Read will be in contact within two working days. Everything you have shared is treated in the strictest confidence.