New Deals: A property restoration business, concrete business, and 3 other finds

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NEW DEALS

1/ Property Restoration Business

📍 Location: Mississippi
💰 Asking Price: $3,500,000
💼 EBITDA: $950,000
📊 Revenue: $6,500,000
📅 Established: N/A

💭 My 2 Cents: This Mississippi-based property restoration company specializes in catastrophe mitigation and reconstruction services for both residential and commercial clients. I like their ample warehouse space where they can handle content cleaning and storage, their ability to also undertake general contracting and improvement services for their restoration clients, and how they have established strategic relationships with insurance carriers that help drive their steady revenues and healthy margins. This business is a franchise resale, so access to training programs and regional support can make for a much smoother transition. However, it’s extremely important to understand the terms of the franchise to see if this deal makes sense for your particular goals. I’d also want to check on how they bring in new business apart from insurance referrals, the condition of any equipment included in the sale, and the qualifications and experience of their staff.  Finally, I’d be curious as to how much more work they could take on without adding new resources, as they are located in an area with its damaging weather events (tornadoes, flooding, etc) where there will always be demand for their essential services.

2/ Concrete Business

📍 Location: Florida
💰 Asking Price: $7,999,999
💼 EBITDA: $1,848,622
📊 Revenue: $8,188,550
📅 Established: 1989

💭 My 2 Cents: If you’re looking for a beautifully simple business with an essential product always in demand, concrete absolutely fits the bill. This concrete contractor, in operation for over 35 years, handles everything from footers and foundations to block work and parking lots. I really like how they have built a very loyal client base, seen in their frequent repeat projects for brands like Chipotle, 7-11, Publix, Walmart, and Starbucks. Their numbers are great, as they’ve billed $2M through February, are on track to exceed $11M in total revenue this year, and have bids out on $100M of new jobs with the expectation they should win 10% of these. I’d want to know if there is any potential client concentration, how far out into the future they bid on projects, the condition and projected lifespan of their 22 vehicles and other equipment, and how they manage their substantial workforce of 30 full-time and 60+ 1099 workers. The owner, who states they could do a lot more work simply with the addition of another estimator, is willing to hold a $1M note, showing their faith in the continued success of the company.

3/ Towing and Recovery Business

📍 Location: Texas
💰 Asking Price: $2,700,000
💼 EBITDA: $595,000
📊 Revenue: $1,200,000
📅 Established: 2005

💭 My 2 Cents: This well-established towing service has built a solid reputation for fast, reliable, and professional roadside assistance and towing for both individual and commercial clients. I like their location in a rapidly growing part of Texas, recurring commercial contracts, and stable earnings profile. What also stands out here are their two facilities (main office and scrapyard) and seven wreckers and other equipment (check condition) valued at $850K included in the sale, with these tangible assets alone representing a significant part of the purchase price. I’d need to look into how competitive their local market is and how they differentiate themselves from other operators, what licenses, permits, or certifications are required to operate the towing business and scrapyard, how many drivers are active and licensed and what turnover looks like (since hiring can be challenging), and how they currently handle dispatching, routing, and their online marketing (check reviews). If that all checks out, then they have a proven cash flow, and their online presence is something a new owner could potentially leverage to help drive further growth with an increased marketing effort.

4/ Computer Services & Technology Consulting Firm

📍 Location: N/A
💰 Asking Price: $2,950,000
💼 EBITDA: $798,200
📊 Revenue: $5,200,000
📅 Established: 2018

💭 My 2 Cents: This technology consulting and services company offers a strong value proposition for buyers looking to acquire a scalable business in the IT services sector. They are known for their user-centric design philosophy and emphasis on building long-term, recurring client relationships. I like that they are a full suite firm that can provide services to clients at many different stages of technology development and implementation, and that the recurring nature of various of their services provides them with a nicely consistent revenue flow. I’d need to better understand exactly what services they offer, how they leverage new technologies to better support their clients, and how the rise of AI is affecting their business, both from an operational standpoint and a sales perspective. I’d also look to dig into the revenue breakdown between their different type clients, their client churn and lifetime value rates, if they have any proprietary IP tools, how they keep up with the latest technologies and if they are dependent on one or two employees, if there any needed certifications or compliance requirements, and the nature of the $800K in included FF&E. Given the speed at which technology is advancing, a new owner should be able to count on this company meeting the needs of a growing number of businesses.

5/ Electrical Contractor

📍 Location: Missouri
💰 Asking Price: $1,950,000
💼 EBITDA: $522,472
📊 Revenue: $2,724,247
📅 Established: ~1995

💭 My 2 Cents: This Southwest Missouri-based contractor has over 30 years of experience performing electrical work for residential, commercial, and industrial clients. I like their long history, loyal customer base, and smaller market where their excellent reputation goes a long way. Despite little to no active marketing, they are able to maintain a consistent revenue stream from repeat business and word-of-mouth referrals. They come with $100K in inventory and their real estate is available for separate purchase at a very affordable $350K. I’d want to find out the revenue split between their different types of clients, what their current backlog and pipeline are, what certifications or licenses are required to operate, what equipment is included in the sale, and the roles and responsibilities of their staff. In addition to the steady cash flow, I see a lot of expansion potential here through variously increasing marketing efforts, extending their service area, and bringing on additional electricians and staff.