How much does a Portable Appliance Testing Service cost to buy?

A typical Portable Appliance Testing Service sells for 1.7x to 3.5x seller's discretionary earnings. With estimated SDE of $68K, expect to pay roughly $116K to $239K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Portable Appliance Testing Service?

Startup costs range from $8K to $45K depending on location, equipment, and scale.

Service

Portable Appliance Testing Service

Q: What are the profit margins for a Portable Appliance Testing Service?

The average profit margin for a Portable Appliance Testing Service is around 38%. Costs include portable appliance testers, calibration, labels, reporting software, insurance, transportation, and technician time. Margins depend on dense site visits and standardized reporting workflows.

Safety stickers, audit trails, and recurring electrical checks

Bottom line

Accessible entry point; validate local supply before buying.

Portable appliance testing services inspect and test plug-in electrical equipment for offices, schools, landlords, event venues, construction sites, healthcare facilities, and industrial customers. It is more common and formalized in the UK and Commonwealth markets, but the same buyer need exists anywhere insurers, safety managers, and facilities teams require documented electrical safety checks.

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Acquisition score

Strong

Avg Revenue

$180K

Profit Margin

38%

Acquisition Multiple

1.7x - 3.5x

Startup Cost

$8K - $45K

How It Works

Technicians visit customer sites with appliance testers, visually inspect cords and plugs, run electrical safety tests, tag compliant items, log failures, and deliver a digital asset register. Revenue is usually per item, per site, or recurring annual/semiannual contract, with add-ons for minor repairs and replacement leads.

Revenue Range

Low End

$60K

Typical

$180K

High End

$600K

Pros

+Low equipment cost compared with most field-service niches
+Recurring compliance-style visits create repeatable routes
+Digital reports and asset registers make switching providers sticky
+Can sell into schools, landlords, offices, events, labs, and facilities teams

Cons

-US demand is less standardized than UK-style PAT markets
-Per-item pricing can become low-margin without route density
-Requires careful documentation to avoid safety and liability disputes

Best For

Detail-oriented solo operators or facilities-service firms that can bundle electrical safety testing with inspections and maintenance

Operating Costs

Costs include portable appliance testers, calibration, labels, reporting software, insurance, transportation, and technician time. Margins depend on dense site visits and standardized reporting workflows.

SBA Financing Estimator

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

+$1K/mo

after debt service

Deal price — $450K

Range: $220K (1.7×) to $810K (3.5×+)

Down payment — 15% ($68K)

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

Interest rate — 8.00%

Current prime-based SBA rates: 7.5–10.5%

Loan term — 10 years (120 mo)

Standard SBA 7(a): 10 years for business acquisition

Down payment

$68K

15% equity injection

Loan amount

$383K

85% SBA-financed

Monthly payment

$5K/mo

$174K total interest

Monthly profit

$6K/mo

at 38% margin

Monthly cash flow after debt service

+$1K/mo

Down payment paid back in ~64 months

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.