New Deals: A nationwide discount food distributor, managed IT service provider, and 3 other finds

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NEW DEALS

1/ Nationwide Discount Food Distributor

📍 Location: Florida (Relocatable)
💰 Asking Price: $2,995,000
💼 EBITDA: $758,739
📊 Revenue: $4,764,413
📅 Established: 9 years ago

💭 My 2 Cents: With food prices hitting record highs—up 29% in the last five years—this nationwide discount food distributor instantly stopped my scroll. Distribution businesses generally run on razor-thin margins, but this one boasts a 15.9% EBITDA margin thanks to its specialization in the liquidation side of the industry. I like how recession-resistant the liquidation industry is, as during economic downturns both consumers and businesses prioritize cost-savings. On top of that, liquidation businesses typically operate on a fast inventory turnover model, which can ensure consistent cash flow. What’s unique about this business is it’s a certified small business federal contractor, which means it’s a key supplier for government programs, such as disaster relief efforts, school lunch programs, or military food provisions (further solidifying its resilience and profitability). I’d want to dig into their supplier relationships and how they manage inventory turnover (especially since liquidation stock is often inconsistent and hard to forecast), how they handle perishables and near-expiry products, and get a breakdown of their customer base. If that all checks out, then because this business operates with only one employee, it may have strong operational systems that can simplify a transition to new ownership.

2/ Managed IT Service Provider

📍 Location: Virginia (Remote)
💰 Asking Price: $3,950,000
💼 EBITDA: $1,024,788
📊 Revenue: $4,278,909
📅 Established: 21 years ago

💭 My 2 Cents: A lot of you are interested in IT Managed Service Providers for their recurring and contractual revenue, strong margins, and industry tailwinds, but the reality is they’re often asking for very high multiples due to private equity interest. That’s why I was excited to come across an MSP with over $1M in cash flow listed for under 4x EBITDA. The business focuses on cloud management and IT Security, two essential services growing in demand as businesses migrate to the cloud and the frequency of cyberattacks increases. I like that this business has landed government contracts, providing an additional level of stability. I also like that, even though the business is based in Virginia, it has been run remotely since the pandemic. However, I’d want to check for any client concentration (which can be common with MSPs) and understand the breakdown across their government agency, prime contractor, nonprofit, and commercial clients. I’d also want to dig into their client retention, including the average contract size and length, what percentage of clients renew, and the average length of client relationships. Otherwise, this looks like a great deal made even better by the seller being willing to finance 10% of the transaction.

3/ Nail Salon

📍 Location: California
💰 Asking Price: $1,999,999
💼 EBITDA: $900,000
📊 Revenue: $3,655,517
📅 Established: N/A

💭 My 2 Cents: Nail salons are a classic boring business that typically comes with strong repeat revenue and loyal customers, but they’re usually small mom-and-pop operations. Enter this nail salon doing $900K in SDE a year as part of a 13-salon portfolio run by a clearly sophisticated operator. I’m curious about what’s driving the impressive margins–is it premium pricing, efficient operations, or both? I'd also want to understand the staff structure and retention rates in an industry known for high turnover. What’s great is the owner is willing to stay on (and you probably want them to because they obviously know what they’re doing), but I’d make sure non-compete agreements are in place. I’d also dig into what’s motivating the seller to offload this location and if there are currently any shared resources across locations. Ultimately, at 2.2x SDE, the asking price seems reasonable for a well-oiled machine in a growing industry driven by increasing demand for self-care.

4/ Non-Emergency Medical Transportation

📍 Location: Tennessee
💰 Asking Price: $3,200,000
💼 EBITDA: $846,321
📊 Revenue: $2,301,899
📅 Established: 5 years ago

💭 My 2 Cents: The aging baby boomer population is a demographic tailwind that could propel non-emergency transport businesses for years. This recession-resistant business comes with a fleet of 18 vehicles offering both wheelchair and ambulatory transport. What really caught my eye is the streamlined billing process through transportation brokers, meaning they don’t have to chase payments from multiple insurance companies. But here's where it gets interesting: they're turning down trips due to capacity constraints, leaving money on the table for a buyer with a growth mindset. That said, I'd want to dig deeper into the reasons behind this—is it a staffing issue, vehicle shortage, or something else? I’d also want to understand the breakdown of their customers (Medicaid, MCOs, hospitals, etc.), any existing long-term contracts they have in place, their relationship with transportation brokers, and how dependent the business is on government reimbursements or one major payer. Last, I’d want to check on the age and condition of their 18 vehicles. Regardless, this could be a great opportunity to enter an industry with built-in demand and strong tailwinds.

5/ Hydroseeding and Erosion Control Company

📍 Location: Florida
💰 Asking Price: $2,495,000
💼 EBITDA: $600,000
📊 Revenue: $2,800,000
📅 Established: 10 years ago

💭 My 2 Cents: The increasing awareness of soil erosion issues caused by urbanization and climate change is contributing to the hydroseeding industry being predicted to grow at an impressive 9.5% rate from 2023 to 2033. This company, with over a decade of experience implementing erosion and sediment control projects, has seen remarkable revenue growth, from $2.2M in 2023 to almost $3M this year. I like their diverse range of services—including sediment control, pond liners, hydroseeding, and stormwater control—which positions the company well within the growing environmental sector. I also like that they have a significant backlog of work extending over the next five years, a large team of trained staff, and specialized equipment valued at over $1M. I’d want to dig deeper into the specifics of their contracts and client relationships to understand the stability of this future revenue. I’d also want to understand which services are most profitable, the average project size and duration, the breakdown of residential vs. commercial vs. governmental clients, and who manages the bidding process to obtain new contracts.