New Deals: A dispatch company, non-medical home care agency, and 3 other finds

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NEW DEALS

1/ Freight Dispatch Company

📍 Location: New York
💰 Asking Price: $950,000
💼 EBITDA: $526,000
📊 Revenue: $1,200,000
📅 Established: 1984

💭 My 2 Cents: This dispatch company has been a reliable freight coordinator for over 4 decades, specializing in the local transportation of incoming air, rail, and truck cargo. This is a simple business that can have a lot of competition, but this company’s long history, strong cash flow, and great margins warrant a deeper look. I especially like that this is a business that can be very asset-light, meaning an owner could work remotely and potentially scale without adding significant expenses. While their current numbers are outstanding, I’d want to understand who their key clients are and what industries they represent to determine whether those industries are cyclical or more recession-resistant. Dispatchers come with a lot of repeat revenue from ongoing services (i.e. finding and negotiating loads, managing paperwork, handling scheduling, etc.) which is great, but I’d want to check how their contracts are structured and what their renewal rate is. In addition, since this is a fairly competitive industry, I’d dig into how they source new jobs and differentiate themselves from their competitors. You’ll also want to check on seasonality in the business, especially if you’re taking on an SBA loan and need to service debt monthly. Depending on the consistency of their cash flow over time and the specifics of their client base and operations, this could be an interesting opportunity at a reasonable price.

2/ Non-Medical Home Care Agency

📍 Location: Phoenix, Arizona
💰 Asking Price: $1,600,000
💼 EBITDA: $600,000
📊 Revenue: $1,600,000
📅 Established: 2014

💭 My 2 Cents: Due to our rapidly aging population, home care agencies have become an integral part of the health and human services landscape. This agency provides non-medical services, including daily living assistance and companionship, for individuals with disabilities and injuries. I really like their Phoenix location, as the area’s large aging population means there should be steady, if not growing, demand for their services in coming years. I also like their strong cash flow, margins, and low overhead, which makes it easier to expand into other specialized care services or geographic areas. I’d need to understand how they acquire new clients (oftentimes these businesses have strong referral relationships in place with healthcare professionals), the average duration of their client relationships, how payments work to include the breakdown between insurance and private pay, and how much competition they face in their local market. I’d also need to dig into whether there are any challenges in recruiting or retaining staff and what protocols are in place to ensure a high level of care. Ultimately, this is a reasonably priced business solving a real and dire need for a growing market.

3/ Print and Digital Marketing Company

📍 Location: Las Vegas, Nevada
💰 Asking Price: $7,350,000
💼 EBITDA: $1,816,542
📊 Revenue: $3,030,861
📅 Established: 2015

💭 My 2 Cents: This Las Vegas-based marketing company provides print and digital services to clients from trade shows to local businesses. I like their mix of new and steady work, as they are in a prime location near a convention center and receive significant demand from event-based clients, while they also have many customers on ongoing contracts that provide a predictable monthly revenue stream, which you definitely don’t see in every printing business. I also like their experienced team of 23, dedicated manager who oversees day-to-day operations, and $700K in FF&E and inventory. I’d need to get a handle on what percent of their revenue is from ongoing contracts versus convention or walk-in customers, the breakdown between their print and digital earnings, how they distinguish themselves from the competition in bringing in new business, the extent of their online presence (especially check reviews), and the nature and condition of their equipment. On the digital marketing side, I’d want to understand client retention and what industries the clients represent (often the more niche, the stickier). If everything checks out, this looks like the chance to acquire a proven cash producer.

4/ Agriculture and Construction Equipment Company

📍 Location: Vermont
💰 Asking Price: $3,490,000
💼 EBITDA: $748,138
📊 Revenue: $11,796,653
📅 Established: 1974

💭 My 2 Cents: This company specializes in agricultural, forestry, and construction equipment sales, rentals, and repairs for a broad customer mix. I like businesses like this one that have been a mainstay in their community for 50 years, building over time a stellar reputation and loyal client base. I also like their straightforward business model, diverse revenue streams that together add up to a very impressive sum, and that there is no client concentration risk as their top 5 accounts count for less than 10% of their revenue. A huge plus is the $8M in FF&E and inventory included in the sale. This is amazing because high-value assets can provide a new owner downside protection and the ability to potentially secure more favorable debt terms. Given their importance, It’ll be critical to understand the nature and condition of the FF&E and inventory and how their value has been calculated. I’d also need to dig into the revenue breakdown between their different business lines, if there is much seasonality to their operations, what is involved in managing such a large inventory of equipment, who their main competition is, and what opportunities might exist for geographic expansion or e-commerce sales. If that all checks out, then this already very attractive deal is made even better by the owner’s willingness to stay on for an extended period post-transaction to help ensure a smooth transition.

5/ Commercial Electrical Contractor

📍 Location: Florida
💰 Asking Price: $7,995,000
💼 EBITDA: $3,152,095
📊 Revenue: $10,105,198
📅 Established: 1977

💭 My 2 Cents: This electrical contractor focuses on large-scale commercial projects for clients in sectors ranging from government and education to industrial and healthcare. I really like the scale of this business, as they are on track for $10M+ in revenue this year, have a significant $9M pipeline of contracted jobs, and have over $1M in accounts receivable. Their track record tells me they have the team in place to handle high-profile projects for sophisticated clients, great visibility into future work, and long lead times on jobs that aid their excellent revenue projections and cash flow management. I’d want to know the revenue breakdown between their different types of projects, who their key customers are and if there is much repeat business, how they source new work (and how involved the owner is in this part of the business), what the average time is from bid to completion to payment, and if there is a current backlog. I’d also need to see if there is any redundancy in license holders needed for the business and if their key employees plan on staying. Ultimately, for the scale and level of cash flow this opportunity offers, this is a very reasonable asking price.