New Deals: A towing and auto repair business, commercial and industrial HVAC business, and 3 other finds

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NEW DEALS

1/ Towing and Auto Repair Business

📍 Location: N/A
💰 Asking Price: $7,600,000
💼 EBITDA: $1,342,427
📊 Revenue: $5,303,308
📅 Established: 1959

💭 My 2 Cents: Towing is not very glamorous, but it’s a great boring business. This company, in operation for over 60 years, provides towing services and vehicle repair for both cars and trucks. I really like their stability, long-term success, and 24/7 roadside assistance that ensures a consistent demand for their services. I also like that they come with $3.6M of assets, including many top-of-the-line towing trucks and a full suite of repair equipment. Their 24,000 sq ft facility, which houses both their dispatch and garage, is also available for purchase. Given their capabilities, a new owner could scale by more aggressively marketing their repair services (which are not as well known)  and forming additional partnerships (i.e. with local dealerships and rental companies) that need towing support. Towing can be a competitive industry, so I’d want to know who the key competitors are in their market, how they acquire new business, and their current partnerships. I’d also want to look into the breakdown in revenue between towing and repair services, the condition of the trucks and equipment, and how much more work their current capabilities could support. If that all checks out, then this business offers both steady cash flow and serious growth potential.

2/ Commercial and Industrial HVAC Business

📍 Location: Salt Lake County, Utah
💰 Asking Price: $3,800,000
💼 EBITDA: $1,233,848
📊 Revenue: $4,785,236
📅 Established: 1988

💭 My 2 Cents: This well-established HVAC company specializes in sheet metal systems while also offering broader HVAC services. I like their focus on the commercial and industrial sectors, as these are often the source of long-term contracts and high-value projects. I also like how they have built a stellar reputation over the years, as this provides a very deep moat against new competitors. Assuming their reviews and client relationships check out, this reputation is a major plus for a buyer. They also have a robust pipeline of work multiple years into the future, meaning a buyer can count on a steady revenue flow going forward. That said, I’d need more detail on the value of the projects in the pipeline and the extent of their current work in progress. I’d also want to understand how they line up new work (and if bidding is involved, who owns this function) and if there is much repeat business.

3/ Concrete Contractor

📍 Location: Texas
💰 Asking Price: $12,500,000
💼 EBITDA: $2,261,065
📊 Revenue: $10,400,000
📅 Established: N/A

💭 My 2 Cents: This highly profitable contractor focuses on concrete installations for commercial and residential projects. The business comes with an awesome $4.5M worth of FF&E (I’d need to confirm its value and condition), providing a huge barrier to new entrants and potentially making it easier for a buyer to find attractive debt. I also like the impressive trajectory this company is on, with revenue growing 19% in the first two quarters of 2024. According to the owners, they could handle 33% more work with the current equipment, so there should be room to grow without additional investments. I’d need to get a handle on their historical performance and I’d want to ensure that their current growth is sustainable rather than based on one large project. I’d also want to know how long they’ve been in business, who their key clients are, how much business is from repeat versus new clients, how they acquire new work, and the degree of local competition. Finally, because the company operates semi-absentee, I’d need to confirm that the current General Manager is open to staying on post-sale (if so, this could be an even better opportunity).

4/ Ticker Sign Company

📍 Location: Las Vegas, Nevada
💰 Asking Price: $6,500,000
💼 EBITDA: $1,300,001
📊 Revenue: $5,000,000
📅 Established: 2006

💭 My 2 Cents: This company produces ticker signs like the ones you see at sports venues displaying scores. In addition to their hardware sales, they generate additional recurring revenue from their app that connects with their products. It’s always great when you can sell a product and then charge a recurring fee on top of this or else the product doesn‘t work. In addition to their multiple revenue streams, I like that they have been in business for almost 20 years and have a large and diverse array of some 4,000 clients, with no client concentration issues. This seems like a pretty niche business, but I’d want to dig into their competition, and, in thinking about growth, how large their potential market is. I’d also be curious as to what their app specifically does and who manages this SaaS component of the business. Ultimately, this business has a lot of upside and should be very appealing to someone with a technological bent.

5/ Printing and Publishing Company

📍 Location: Seminole County, Florida
💰 Asking Price: $1,620,000
💼 EBITDA: $662,769
📊 Revenue: $3,328,536
📅 Established: 1971

💭 My 2 Cents: This company has been providing printing and publishing services to its local community for over 50 years. Readers know I love businesses with this type of longevity and history in their community, as it’s impossible to fake a reputation built upon years of high-quality service. It’s important to note that there is a lot of competition in this space, so I would want to know if they specialize in any specific type of printing that would differentiate them from the pack. With any business that comes with a lot of equipment, I’d also want to assess the condition of the equipment to really make sure you don’t have to make additional investments on that front immediately post-sale. I’d also want to better understand who their key customers are and what industries they represent, the level of repeat business, and what their marketing and sales strategy looks like. Ultimately, with 24 established staff members, a loyal client base, and a large warehouse and facilities, this looks like a very attractive opportunity worth digging into.