How much does a Electric Motor Rewinding cost to buy?

A typical Electric Motor Rewinding sells for 2.5x to 4x seller's discretionary earnings. With estimated SDE of $266K, expect to pay roughly $665K to $1.1M before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Electric Motor Rewinding?

Startup costs range from $100K to $400K depending on location, equipment, and scale.

Service

Electric Motor Rewinding

Q: What are the profit margins for a Electric Motor Rewinding?

The average profit margin for a Electric Motor Rewinding is around 38%. Labor is the dominant cost at 40–45% of revenue. Skilled winding technicians earn $25–$45/hour. Copper wire, varnish, bearings, and consumables add 15–20%. Facility rent for a 5,000–10,000 sq ft industrial shop runs $2K–$6K/month. Shops with 3–5 technicians typically generate $500K–$1M in revenue at 35–42% net margins.

The industrial repair niche that keeps factories running

Bottom line

Worth studying, but do not buy without strong local proof.

Electric motor rewinding shops repair and rewind failed electric motors for industrial clients — manufacturers, water utilities, food processors, mining operations, and HVAC contractors. When a motor burns out, replacing it can cost 5–10x more than rewinding the existing one. The niche is shrinking in supply (fewer shops, aging tradesperson base) while industrial demand remains steady, creating strong pricing power for surviving operators.

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Acquisition score

Strong

Avg Revenue

$700K

Profit Margin

38%

Acquisition Multiple

2.5x - 4x

Startup Cost

$100K - $400K

How It Works

When an industrial electric motor fails, plant maintenance teams remove it and send it to a rewind shop. Technicians strip the old copper windings, test the core for damage, rewind with new copper wire to factory specs, varnish and bake the coils, and test under load before returning. Turnaround is typically 3–10 days. Large facilities maintain standing service agreements. Revenue comes from repair fees (charged by motor horsepower and complexity), emergency rush premiums, and motor sales for units that are beyond economic repair.

Revenue Range

Low End

$300K

Typical

$700K

High End

$1.5M

BizBite underwriting snapshot

Watch / verify

Electric Motor Rewinding has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

Speculative / 100

Data confidence

medium

52/100

Financing fit

medium

Category-level fit before lender-specific diligence.

Confidence cap

Weak source data caps the final score.

Why it may work

+Attractive 38% estimated margin profile
+SBA dataset shows 59 recent comparable loans

Be careful

!Source link status has not been verified yet
!No last-checked date yet
!No category operating model yet
!No category model yet

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 811310 · Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Deals tracked

142

59 in last 24 mo

Median loan

$779K

$250K–$1.6M p25/p75

Implied deal size

$916K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Deal Flow Over Time

12-month momentum

-31.4%

deal volume vs prior 12 mo

Median loan Δ

+64.4%

24 recent · 35 prior

Financing Profile

Median rate

9.50%

22% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company18

The Huntington National Bank15

First Internet Bank of Indiana5

First National Bank of Pennsylvania5

Beacon Bank and Trust5

Where deals happen

TX20

CA13

PA8

CO8

FL7

MI7

IL6

OH6

OR5

MO5

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	NY	$3.3M	$3.8M	15	—
Mar 2026	FL	$2.8M	$3.2M	25	—
Feb 2026	WA	$900K	$1.1M	12	—
Feb 2026	AZ	$1.4M	$1.7M	2	—
Feb 2026	TX	$1.2M	$1.4M	7	—
Feb 2026	TX	$250K	$294K	7	—
Jan 2026	TX	$200K	$235K	1	—
Jan 2026	NY	$500K	$588K	6	—
Jan 2026	TX	$1.3M	$1.5M	1	—
Jan 2026	MD	$965K	$1.1M	20	—

Volume rank #54/544Deal-size rank #229/544Momentum rank #275p90 loan: $2.4MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+Industrial clients depend on motor uptime — downtime costs thousands per hour, making price less of an issue
+Trade skill shortage means fewer competitors entering the market — existing shops face declining local competition
+Emergency repair premiums (2–3x base rate) generate outsized margin on rush jobs
+Long-standing client relationships with manufacturers and utilities are extremely sticky

Cons

-Requires skilled winding technicians who are increasingly rare and expensive to hire
-Capital-intensive shop setup with specialized winding machines, test equipment, and baking ovens
-Shift toward variable frequency drives and permanent magnet motors is slowly reducing rewind frequency on newer equipment

Best For

Buyers with industrial maintenance or electrical background who want a skilled-trade shop with strong pricing power

Operating Costs

Labor is the dominant cost at 40–45% of revenue. Skilled winding technicians earn $25–$45/hour. Copper wire, varnish, bearings, and consumables add 15–20%. Facility rent for a 5,000–10,000 sq ft industrial shop runs $2K–$6K/month. Shops with 3–5 technicians typically generate $500K–$1M in revenue at 35–42% net margins.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

+$7K/mo

after debt service

Deal price — $1.4M

Range: $1.4M (2.5×) to $3.5M (4×+)

Down payment — 15% ($210K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 9.50%

SBA median for this category: 9.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$210K

15% equity injection

Loan amount

$1.2M

85% SBA-financed

Monthly payment

$15K/mo

$658K total interest

Monthly profit

$22K/mo

at 38% margin

Monthly cash flow after debt service

+$7K/mo

Down payment paid back in ~32 months — strong return

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.