New Deals: A telehealth business, meat processing facility, and 3 other finds

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NEW DEALS

1/ Telehealth Business

📍 Location: King County, Washington
💰 Asking Price: $2,200,000
💼 EBITDA: $550,000
📊 Revenue: $1,300,000
📅 Established: N/A

💭 My 2 Cents: This business provides niche telehealth services for private pay clients. The telehealth industry was already growing pre-Covid, but the pandemic accelerated this growth to where virtual services like this are a common part of individual healthcare plans. I like that they have put in place transferable contracts with educational institutions so they have a clear pipeline of future staff to support continued growth. Along with a lean administrative team and 2 supervisors, the current staff includes 26 care providers, along with approximately 10 providers currently onboarding. I also like how the business is run entirely remotely, so they could readily scale up without needing to add a lot of overhead. I’d be curious as to what their specific niche is and if there are any specific types of treatments that clients go to them for. By extension, I’d want to know who their clients generally are and how they acquire new ones. While there are a lot of players in the telehealth space, this doesn’t mean there isn’t room for smaller independent providers, but I’d want to understand their specific market and potential for growth. I’d also want to look at their results over time, see how they did during Covid, and confirm they have had stable revenues the past few years. Truly remote businesses that have staff in place that handle day-to-day operations are hard to come by, so this is an exciting opportunity even if you have no clinical experience or licensing.

2/ Plumbing Business

📍 Location: Nebraska
💰 Asking Price: $4,000,000
💼 EBITDA: $938,386
📊 Revenue: $5,021,891
📅 Established: N/A

💭 My 2 Cents: This is a plumbing company with a huge market share and an over 20 year history in their area. These two things can help give you a leg up over competitors and make your business virtually recession-proof. I like that $1.4M of FF&E is included in the asking price, as this provides a nice moat but also ensures that you are getting things with a real tangible value in the deal. At the same time, I’d need to look into the FF&E’s quality, condition, and ability to service their current and future workload. I also like that this company’s work is split between commercial and residential projects, but I’d want to understand how much of their work is new construction versus service or maintenance, if there is any recurring revenue, how they bring in new business, and if there are any client concentration issues. I’d also want to check on competitors as well as get a handle on how they calculate their claim of 45%+ market share. There is an established staff of 20 in place, but I’d want to look into managers staying on post-sale as well as the day-to-day role of the owner. If that all comes back clean, then this is a solid essential business with a proven track record.

3/ Meat Processing Facility

📍 Location: N/A
💰 Asking Price: $5,500,000
💼 EBITDA: $1,000,113
📊 Revenue: $4,139,888
📅 Established: 1969

💭 My 2 Cents: This meat processing company is a little different from the businesses I usually see for sale. I like that they provide a valued service (Americans love meat), have been around for 50+ years, and have 20 employees and 4 managers. I also really like that the asking price includes $2M of real estate and buildings, $300K of inventory, and over $1M of FF&E. A key question is how heavily their business is tied to the price of meat. If prices go down, do they have to scale back either their processing or market? Relatedly, I’d need to know how much revenue comes from processing versus the market they also operate, how large their market is, who their main customers are, and what their competition looks like. I’d also ask if they are involved in raising and selling their own livestock and if their processing is only for their own supply or also for other businesses. This is a pretty straightforward business with an experienced staff, so someone completely fresh could come in and pick it up quickly with the training and assistance that the seller has offered to provide. And with a home on the land that is included with the sale, this could be a great option if you are planning on relocating. Depending on how much of the purchase price ends up being attributed to the real estate value, you can also look into getting different terms on your SBA loan that potentially bring down the rate and extend the repayment period, making the debt payments more manageable.

4/ Remediation And Recovery Business

📍 Location: Miami, Florida
💰 Asking Price: $1,500,000
💼 EBITDA: $507,000
📊 Revenue: $1,992,000
📅 Established: 2012

💭 My 2 Cents: This remediation and recovery business specializes in handling water, mold, and fire and smoke damage. There are a lot of businesses that do similar work, including many franchises, but I like how this small, independent operator doesn’t have any constraints on how or where they operate and doesn’t need to worry about someone else’s territory. I also like that their Miaimi location means there should always be a pretty steady stream of work and that 70% of their business comes from insurance claims, with most of the rest resulting from relationships with HOAs and condo associations. It’s also nice that there is an experienced supervisor who will be continuing on post-sale and that the owner is willing to continue to qualify the company until a new buyer is able to get their own certifications. Given that so much business comes from insurance, I’d want to know why insurers choose to work with this company, whether they spread work around with many providers, if there is a bid process involved, and if there are any personal relationships the owner holds. I’d also want to check on the competition, what possible growth opportunities look like, and what the hiring and staffing process looks like. If you can start landing some government contracts, then you could really scale this thing up.

5/ Commercial And Residential HVAC Business

📍 Location: Fort Pierce, Florida
💰 Asking Price: $3,200,000
💼 EBITDA: $693,416
📊 Revenue: $3,971,142
📅 Established: 1994

💭 My 2 Cents: As you all know, I see HVAC companies as the gold standard of a boring business. They offer a valued and always in-demand service, provide steady cash flow, and are essentially recession-proof. This particular company has traditionally specialized in commercial installation and maintenance work, but more recently they have also been growing the residential side of the business, giving them 2 solid revenue streams. I’d want to know the revenue split between commercial and residential work and between new construction and maintenance, how many of their clients are repeat business, how often new construction leads to ongoing service contracts, and how much of their service business represents recurring revenue. I’d also want to understand how they bid for new business, how they win out over their competition, and what their current backlog looks like. Finally, I’d want to know if there are experienced salespeople on the staff and if they are likely to stay, as well as how much business is based on the current owner’s relationships. Ultimately, I love a good HVAC deal, but I especially love them when they are in Florida (where losing your AC is the number 1 fear) like this one.