New Deals: An insurance litigation firm, well logging company, and 3 other finds

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NEW DEALS

1/ Insurance Litigation Firm

📍 Location: Florida
💰 Asking Price: $2,140,000
💼 EBITDA: $624,000
📊 Revenue: $1,800,000
📅 Established: 2014

💭 My 2 Cents: Everyone is looking for a recession-resistant business right now, and this one certainly fits the bill. Insurance disputes don’t go away in downturns—they often increase (people fight harder for claim payouts when times are tight). While this firm primarily focuses on insurance litigation (70% of revenues), they also perform some condo law work (20%), and serve as legal counsel for drug rehab facilities (10%). I really like their remote operation and minimal overhead, contributing to their strong margins, impressive 99% settlement rate, and well-established public adjuster networks that consistently supply new cases without their having to expend marketing dollars. They are readily scalable and, given their current large backlog of cases, a new owner could drive near-term growth by bringing on additional attorneys. I’d want to better understand the breakdown between their different types of fees (flat, statutory, contingency) as that can impact the cash conversion cycle, how many active cases are in the pipeline, their average case duration and value, and who actually works the cases (senior attorneys or junior staff?). Thankfully, you can still be the buyer even if you’re not a lawyer, as their operations are structured separately from legal services, so non-attorneys can own and effectively run the business.

2/ Well Logging Company

📍 Location: Oklahoma
💰 Asking Price: $4,900,000
💼 EBITDA: $1,068,540
📊 Revenue: $2,697,654
📅 Established: 1978

💭 My 2 Cents: Well logging is mission-critical for oil & gas exploration and production. With over 20,000 logs in their database, this Oklahoma-based business has provided open-hole and cased-hole logging services for over 46 years to oil and gas producers in the Midwest. With their great margins, recurring B2B relationships that aren’t easily swapped out, and strong market position, you wouldn’t necessarily expect them to be available for sale, but the owner has a terminal illness and is seeking a quick sale. They also come with a massive asset base of $5.3M in FF&E and $800K of real estate, which, in serving as collateral, could provide a huge advantage for a buyer in securing financing. I’d need to get a handle on how many logging units (trucks or labs) they own and what current vs. max monthly job capacity looks like. I’d also look to check on how many active service contracts or recurring clients they have, how exposed revenue is to one or two customers, who the main clients are (e.g., small E&Ps or major operators), and how many of their staff are projected to remain post-sale (since labor can be a bottleneck). With a purchase price below the value of the included assets, this deal should be a real winner.

3/ Landscaping Business

📍 Location: Rhode Island
💰 Asking Price: $2,200,000
💼 EBITDA: $580,404
📊 Revenue: $2,000,713
📅 Established: 1985

💭 My 2 Cents: One thing I look for in the very competitive landscape space is a proven track record. This company fits the bill with four decades of success providing a comprehensive suite of services from lawn care and landscape construction to power washing and snow plowing. I like their year-round offerings (especially in a climate like Rhode Island where there is less demand for landscaping in the winter), their ability to bring in recurring revenue, and the $500K of FF&E included in the sale (with their real estate available for separate purchase). I’d want to know the revenue split between their various service lines, how much of their client base is residential versus commercial, how they bring in new work, and the condition and projected useful life of their equipment. They are fully staffed with a team of 20 in place, so they are set up to be a nicely profitable turnkey.

4/ Print and Marketing Business

📍 Location: Nevada
💰 Asking Price: $5,600,000
💼 EBITDA: $1,801,720
📊 Revenue: $3,030,861
📅 Established: 2018

💭 My 2 Cents: This high-margin print and marketing business has a well-established clientele that represents a solid base of recurring revenue, cutting-edge technology, and exceptional profit margins. They are equipped with state-of-the-art print equipment (most of which they own outright) and are operated by a team of 5 full time and 21 contract employees. I’m really curious about their customer base as traditional print services are no longer a growing industry, but with their location in Las Vegas there could be a lot of demand from the steady stream of conventions there. I’d want more details on what their standard contracts look like to include their typical terms and duration. I’d also need to look into any possible client concentration, how they source new work, how much competition they face in their market, how they stay current with the latest developments in print technology, and the nature and value of the equipment included in the sale. Assuming there is a solid transition plan in place, this looks like a very solid opportunity that is ready to keep humming for a new owner.

5/ Software and IT Staffing Company

📍 Location: New Jersey
💰 Asking Price: $10,500,000
💼 EBITDA: $2,176,088
📊 Revenue: $8,786,459
📅 Established: 1990

💭 My 2 Cents: This software and IT staffing company features both a strong services arm and a proprietary software product licensed by major financial institutions. They offer a full suite of IT solutions, from infrastructure and cloud management to cybersecurity, positioning themselves as a turnkey digital transformation partner for enterprise clients. I really like that they primarily service mid-to-large size businesses, as this can be a very hard market to break into for potential competitors, and that the types of services they provide can be very sticky, as clients can face high switching costs in looking elsewhere. I’d need to dig into their revenue breakdown between staffing and software licensing, how much they invest each year in maintaining and updating their software, what their client renewal rates are, how they acquire new clients, and the roles and responsibilities of their staff to include their owners. Overall, this seems like a great chance to acquire a lucrative company with a lot of upside, but I’d want to be sure I understood how the ongoing advances in AI could impact their business model.