New Deals: A demolition business, landscape design company, and 3 other finds

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NEW DEALS

1/ Demolition Business

📍 Location: Arizona
💰 Asking Price: $3,000,000
💼 EBITDA: $789,812
📊 Revenue: $2,356,596
📅 Established: 2005

💭 My 2 Cents: Demolition is basically your textbook definition of a necessary boring business. This very profitable company specializes in concrete and asphalt removal, excavation, grading, and hauling. I like their 20-year history, strong client relationships, skilled workforce, and location in a growing metropolitan area where redevelopment and infrastructure projects drive consistent work. I’d want to better understand who their key clients are, what percentage of their revenue comes from repeat clients versus new business, how they acquire new contracts and their bid success rate, the standard timeframe from bid to project completion and payment, and the condition of their trucks and other FF&E included in the sale. Given their track record, this company looks like a really solid opportunity which is made better by the seller being willing to stay on as a consultant.

2/ Landscape Design Company

📍 Location: New York
💰 Asking Price: $2,500,000
💼 EBITDA: $700,000
📊 Revenue: $3,100,000
📅 Established: 1978

💭 My 2 Cents: This high-end landscape design company specializes in luxury outdoor projects, including in-ground pools, patios, outdoor kitchens, and custom landscapes. While it’s always nice when there’s some $400K of equipment included in the sale, what really catches my eye here are their long history (in business since 1978) and their stellar reputation in the luxury landscape sector, where high-net-worth clients tend to continue to invest in property enhancements. I also like that there is room for a new owner to expand into complementary services, such as landscape maintenance or outdoor lighting solutions. I’d need to look into how much of their business comes from new projects versus recurring contracts (if they’re already doing some maintenance work), how they source new work, how they deal with possible seasonality issues, how much work they subcontract, and what the day-to-day role of the owner is. If everything checks out, it’s hard to go wrong with an established landscaping company like this.

3/ Technology Integrator and Contractor

📍 Location: California
💰 Asking Price: $3,500,000
💼 EBITDA: $1,024,363
📊 Revenue: $28,411,689
📅 Established: 2001

💭 My 2 Cents: In our IT-driven world, it almost goes without saying that IT companies are hot right now. This particular company specializes in enterprise IT solutions, including cybersecurity, cloud computing, and software development, for various industries, from telecommunications to healthcare. I like their long term relationships with clients, specialized certifications to include ISO 9001:2015, DGS, and ISN, robust team of 25, and location in San Diego’s vibrant technology hub. I’d need to know their revenue breakdown between government and private sector clients, if there is any client concentration risk, how they distinguish themselves from their competitors, and how they keep up with the latest technological advances (especially AI) that could impact their services. I’d also need more detail on their certifications and licenses, to include who needs to hold them and if a new owner will be able to readily renew these as needed.

4/ Tractor and Lawn Equipment Sales and Service Company

📍 Location: Mississippi
💰 Asking Price: $1,900,000
💼 EBITDA: $570,000
📊 Revenue: $7,301,985
📅 Established: 1988

💭 My 2 Cents: This business is a one-stop-shop for the sale, maintenance, and repair of power equipment, from tractors and landscaping tools to golf carts and powersport vehicles. They serve a mix of municipal, commercial, and residential clients, are an authorized dealer for six brands, and employ a comprehensive marketing effort that includes direct outreach, referrals, website, and TV and print ads. I really like their different revenue streams, diversified client base, low client concentration risk (no client representing more than 2% of revenues), and last, but not least, the almost $1.5M of inventory and FF&E included in the sale (representing 72% of the purchase price). However, I’d need more info on their authorized dealerships, including if any of them are exclusive or represent an oversized proportion of their sales. I’d also want to get a handle on how reliant they are on key suppliers and if alternate vendors are available, if there is any seasonality to their cash flow, and the qualifications and experience of their staff. While the hard assets included in the sale alone make the price very appealing, SBA financing is available for qualified buyers and their excellent facilities are available for separate purchase.

5/ Trucking Company Focused on Construction, Agriculture, and Recycling

📍 Location: Oregon
💰 Asking Price: $5,750,000
💼 EBITDA: $1,150,000
📊 Revenue: $7,800,000
📅 Established: N/A

💭 My 2 Cents: With a fleet of some 15 vehicles and associated equipment, this trucking company serves the construction, agriculture, and recycling industries. I like their straightforward business model, their broad client base, as this should help ensure they stay busy year-round, and their experienced team of drivers, mechanics, and office personnel. They also have their own in-house full-service maintenance shop and purchase their fuel in bulk, which allows them to keep down their operating expenses. I’d want to dig into their revenue split by industry served, how much of their revenue comes from long-term contracts versus spot market jobs, how they win new clients, and who their main competitors are. I’d also need to scope out the condition of the FF&E to include any equipment pending replacement, how much they spend annually on repairs and maintenance, and how sensitive they are to fluctuations in fuel costs.