Zack Mutnik·May 14, 2026

Too Good to Be True: Year 1 in a $700k SDE Business | Zack Mutnik Interview

Zack Mutnik, a Navy veteran and gas turbine electrician, bought a 40-year-old residential electrical contractor in North Port, Florida (west coast, about 90 minutes south of Tampa) in early 2025 for $1.65m — a deal that appeared almost too good with ~$700k in reported SDE at roughly 2.3x. Year 1 was brutal: phones barely rang (the seller had never advertised), the seller relationship soured quickly, two undisclosed lawsuits came with the stock purchase, and 8 of 10 original employees eventually left. Zack poured money into every marketing channel he could find, mostly unsuccessfully, and managed $100k+/month in overhead through the slow months. Despite all that, he hustled the business to $1.73m in Year 1 revenue — higher than the $1.3m the seller did in 2024 — driven by hurricane-season generator demand, his technical credibility, and a growing base of customers calling off 40-year-old panel stickers. He is now rebranding to Mutts Electric, has rebuilt a crew of ~8-9 people with a culture he controls, won the county electrical contractor bid, and is targeting $5m revenue with generator, residential, and commercial service divisions.

Deal facts

purchase price: $1.65m
multiple: ~2.3x SDE
sde ebitda: SDE ~$700k (reported; ~30% net margin on $1.7m revenue)
revenue: $1.7m (2023 peak); $1.3m (2024, year of sale); $1.73m (Zack's Year 1)
financing structure: SBA 7(a) loan (~90%) + ~5% seller note (deferred, starting 2027, ~$83k) + ~5% equity held by seller pending license transfer (paid out ~$83.5k at transfer); buyer put in ~$83.5k cash down; also purchased $75k receivables and received $75k working capital from bank
notes: Stock purchase (not asset purchase) required by SBA lender. Seller carried electrical contractor's license at 5% equity stake for ~3 months post-close until Zack obtained his own contractor's license. Two undisclosed pre-existing lawsuits inherited due to stock purchase structure. Seller also became landlord post-close.

Why this business

Zack specifically sought an electrical or generator business because of his Navy background as a gas turbine electrician. He wanted to start at 'level three instead of ground zero,' buy something already generating over $1m in revenue, and leverage his technical expertise while adding generators as a new service line. The deal looked too good to pass up — ~30% margins at sub-2.5x — and he had been watching it on BizBuySell for almost a year before the broker called him.

What's working

Panel stickers from 40 years of work generate consistent inbound calls — customers who buy homes find the sticker and call the number
Zack's generator expertise (Navy background) is a genuine edge; he sold a lot of generators especially during hurricane season, which was 'bread and butter'
Veteran-to-veteran networking opens doors quickly; a cruise ship client came via this channel
Rebranding to Mutts Electric (his own brand) signals a fresh start and shed the seller's burned relationships with some clients
Won county electrical contractor bid, providing steady commercial service work
Revenue in Year 1 reached $1.73m — higher than the $1.3m the seller did in 2024
Built a stable crew of ~8-9 by selectively hiring vs. inheriting; culture is now his own
Delegating field management to a 'number two' so Zack can focus on growth and strategy

What's hard

Phones were nearly silent for months after close — the seller had never advertised in 40 years and relied entirely on word of mouth; business was much quieter than the reported numbers suggested
Seller was not forthcoming during diligence — minimal financial records (paper carbon copies, QuickBooks Desktop 2014), limited cooperation, slow process taking 9 months to close
Two undisclosed pre-existing lawsuits inherited via stock purchase structure
Seller relationship deteriorated badly post-close; seller (who became landlord) was uncooperative on training and at times adversarial (e.g., implying employees stole materials)
Employee transition was awkward — employees not told of sale until Day 1; many pulled GPS trackers from vans and tested boundaries; 8 of 10 original employees eventually left
Poured money into marketing (Meta ads, YouTube, flyers, Google, community barbecue) with limited results early on; wasted significant spend figuring out what works
Overhead exceeds $100k/month with debt service; managing payroll with slow revenue in early months was very stressful
Inherited receivables: bought $75k of AR, some of which was uncollectible (one customer had filed bankruptcy prior to sale)
QuickBooks Desktop 2014, manual payroll by check — very archaic systems that needed rebuilding
Customer concentration was more significant than initially disclosed
Stock purchase (vs. preferred asset purchase) exposed him to prior liabilities; attorney transition mid-deal added delays

Notable quotes

I never did. I just wanted to do it so bad. I just wanted to do this. I've always wanted to own And I already made the decision in my head. If I make a decision like I don't Whatever's downhill this, I'll figure it out.

I have over $100,000 in overhead a month. And that's new to me, you know? And I got all these guys that need a paycheck, you know?

This guy never advertised once in 40 years. He was a part of the Chamber of Commerce, you know, he'd sometimes network, but it was all word of mouth.

I probably wouldn't have bought the business if I knew who the seller was. Real, you know? But I didn't know. I didn't know what I was buying. I'm happy now. Obviously, I'm happy. It's like you have a kid at 16. You're not happy when you're pregnant, but like you have the kid. You love the kid, right?