New Deals: An environmental testing company, commercial landscaping company, and 3 other finds

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NEW DEALS

1/ Environmental Testing Company

📍 Location: Indiana
💰 Asking Price: $2,250,000
💼 EBITDA: $694,350
📊 Revenue: $1,838,210
📅 Established: 1994

💭 My 2 Cents: Environmental testing is often required by law across multiple industries, including construction, manufacturing, real estate, and government agencies. This company provides environmental testing and engineering services for commercial and municipal clients in Indiana and neighboring states. I like their 30-year history, experienced team of inspectors and engineers, and 75% repeat customer base. These firms generally have a lot of recurring revenue through government contracts (as well as corporate clients and compliance testing), so I’d be eager to dig into these contracts and their renewal rates. I’d also want to look into who their main competitors are, how they handle compliance with evolving environmental regulations, the nature and condition of the equipment included in the sale, profitability of each test type, and the feasibility of offering such additional services as geotechnical engineering and survey layout. It’s important to note that this business benefits from Women-Owned Business Enterprise (WBE) and Disadvantaged Business Enterprise (DBE) designations, which account for approximately 75% of their revenue, so a buyer will need to qualify under these designations or as a veteran to maintain existing contracts.

2/ Commercial Landscaping Company

📍 Location: Minnesota
💰 Asking Price: $6,300,000
💼 EBITDA: $1,649,730
📊 Revenue: $4,444,961
📅 Established: N/A

💭 My 2 Cents: This company has carved out a great niche in the often-crowded landscaping space, focusing on erosion control and landscaping solutions for general contractors serving public sector clients in Minnesota from the municipal to state level. They have very strong earnings, impressive margins, and the size to take on very large projects beyond the scope of many competitors. I also really like the $2.5M in equipment included in the sale, as this provides a hard-to-replicate asset base worth some 40% of the purchase price. With this opportunity, I’d want to understand what percentage of their contracts are long-term versus one-time projects, contract renewal history, and pending or upcoming RFPs that could impact future revenue. I’d also want to confirm if they ever work with end users or only through GCs and if there is any customer concentration with the GCs. Some other items I’d dig into would be the nature and condition of their fleet and equipment, the qualifications and experience of their staff, and what government regulations they may be subject to for their erosion control work. While I’d also want to ask about any seasonality issues, the government client base and very high cash flow make this an attractive opportunity.

3/ Moving and Rigging Company

📍 Location: New Hampshire
💰 Asking Price: $1,800,000
💼 EBITDA: $526,000
📊 Revenue: $3,377,000
📅 Established: 1925

💭 My 2 Cents: It isn’t every day that you run into a business with the longevity of this moving company, which has been in operation for an amazing 100 years. Over the past century, they have built an amazing reputation for handling both residential and commercial moves for a broad client base across New England. Looking forward, I like their capabilities in office moving as this should help ensure a steady stream of high-ticket projects even if residential moving were to slow down. There should also be significant room for growth by increasing sales and marketing efforts, as they have done only minimal advertising, and by expanding their service offerings. I’d want to dig into their revenue split between residential and commercial clients, how they differentiate themselves in a space where there can be a lot of competitors, how they acquire and keep skilled staff, and how dependent they are on the owner and what will be involved in replacing them. I’d also need to get a handle on the value of the included fleet and equipment, which I assume should be extensive and could cover a good part of the purchase price.

4/ Property Restoration Company

📍 Location: Southern US
💰 Asking Price: $3,500,000
💼 EBITDA: $950,000
📊 Revenue: $6,500,000
📅 Established: 2017

💭 My 2 Cents: This property restoration company specializes in catastrophe mitigation and reconstruction for both residential and commercial clients. To start, I like their location in the South, as the region’s frequent exposure to extreme weather events is a key factor driving demand for their services. I also like how much of their business comes from established partnerships with insurance agencies and that their experienced full-time staff of 25 lets them take on various jobs. Critically, this is a franchise resale, so as with any franchise, the details of the benefits and costs that come with this arrangement will be very important to carefully analyze. For new entrants to an industry, the support of a corporate franchise can be very valuable and ease the transition, but I’d want to understand what limitations are put on potential growth, autonomy, and profitability. I’d also need to dive into how much competition they face in their broader market, the value and condition of any FF&E included in the sale, the lease terms for their facilities, and if there are any required licenses to operate the business. Assuming everything checks out on the franchise end, this looks like quite an attractive opportunity.

5/ Marketing Agency

📍 Location: Florida
💰 Asking Price: $11,500,000
💼 EBITDA: $2,215,807
📊 Revenue: $3,812,318
📅 Established: 2000

💭 My 2 Cents: This award-winning agency has been providing a full suite of marketing services to both U.S. and international clients for 25 years. Specializing in B2B marketing, with a well-honed approach to client acquisition and retention, they have a super high 83% sales close rate, extremely strong earnings, and amazing 44.23% net margins. They’re able to generate these impressive results with only 5 full-time employees, while their remote business model keeps operating costs low and offers ready scalability. I’d need more info on their client base, including the industries they represent, their standard client acquisition cost, lifetime value, churn rate, and if there is any possible client concentration risk. I’d also need to scope out their level of revenue from recurring contracts versus one-off projects, what their sales and marketing funnel looks like, if additional hires would be needed to scale the business further, and how important the owner is to daily operations and client relationships. Given their successful track record and projected increased revenue for 2025, this seems a great opportunity for someone seeking to enter or expand in the industry.