New Deals: A pressure washing business, HVAC business, and 3 other finds

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NEW DEALS

1/ Pressure Washing Business

📍 Location: Florida
💰 Asking Price: $1,750,000
💼 EBITDA: $635,577
📊 Revenue: $1,792,765
📅 Established: 2010

💭 My 2 Cents: This business specializes in commercial pressure washing with a focus on long-term contracts. What I like about pressure washing is that businesses across various industries need it regularly to maintain curb appeal, making it relatively recession-resistant as well. I like their 15-year history, which tells me they have been able to carve out a profitable niche for themselves in what can be a competitive space. I also like their large number of repeat clients, solid cash flow, and the opportunity for a new owner to expand by offering add-on services (roof cleaning, deck restoration, graffiti removal, etc.) and residential services (though this would be more one-time). Since you’re buying a book of business, you’d really need to understand how their contracts are structured and what their client renewal rate and average lifetime value are. I’d also inquire about any seasonality issues, how they source new clients (and what the owner’s role is here), if they have an online presence to include reviews, and the condition of the equipment and vehicles included in the sale. Overall, this looks like the chance to acquire a steady cash producer that also comes with some clear growth potential (especially if you come from a sales and marketing background).

2/ HVAC Business

📍 Location: Florida
💰 Asking Price: $1,499,000
💼 EBITDA: $511,348
📊 Revenue: $4,438,530
📅 Established: 1973

💭 My 2 Cents: HVAC businesses are popular because they provide an essential service that is always in demand and have built-in staffing and equipment barriers to entry that can limit competition. This company concentrates on commercial projects (80% of their work), serving such clients as schools, shopping centers, hospitals, and government buildings. I like their Florida location where HVAC services are especially needed, focus on larger and more stable commercial contracts, and significant pipeline of over $11M in future work that will carry them well into 2025 and beyond. That said, I’d want to dig into their revenue breakdown for new construction versus repair or maintenance work, how they win new jobs and if bidding is involved, the qualifications and experience of their staff, and if the FF&E includes all needed equipment. If that all checks out, then their clean financial records are a huge plus, and the seller’s willingness to provide financing, an extended transition period, and use of their license until a new one can be secured makes this a can’t-miss deal.

3/ Portfolio of Subway Franchises

📍 Location: Oregon
💰 Asking Price: $7,900,000
💼 EBITDA: $2,296,655
📊 Revenue: $15,605,946
📅 Established: 2011

💭 My 2 Cents: This portfolio of 25 Subway franchise locations has a number of things going for it. All the units are recently renovated and up to franchise standards, they are in smaller cities with less competition, and together they represent a very stable cash flow. While there are a lot of operational and management complexities that can come with owning this many locations, the established franchise systems in place should provide important advantages in staffing, ordering, and marketing. As with any franchise, I’d want to spend a lot of my diligence time on understanding the specific FDD agreement with the franchisor so I know what support I can expect from them, what my costs are, and what restrictions there may be on operations, growth, and eventual sale. I’d need specific details on each unit including their average unit volume (AUV), profitability, foot traffic, lease terms, condition of equipment and maintenance history, staffing, and level of competition in their immediate area. I'd also need to fully understand the current management structure for each location and the overall portfolio.

4/ B2B Window Fabrication Company

📍 Location: New Jersey
💰 Asking Price: $10,500,000
💼 EBITDA: $3,150,000
📊 Revenue: $17,246,790
📅 Established: N/A

💭 My 2 Cents: This B2B company fabricates windows exclusively for sale to installation companies, meaning they do not do any installation work themselves or deal directly with end users. I like their focus solely on production, as this has enabled them to become highly efficient in their core competency while developing a reputation for high-quality products. They also have an efficient cash flow cycle as they collect payment immediately upon shipment, benefit from strategic European partnerships for sourcing key materials, and have a large backlog that would ensure near-term revenue for a new owner in a transition. I like that they currently operate with only one sales representative, meaning there is a large growth opportunity by adding a larger sales staff and expanding their geographic presence beyond New York. I’d want more details on the company itself, including how long they’ve been in business, in their current location, and under their current ownership. I’d then need to examine their financials for the past five years to see how they handle increasing labor and supply costs and how these impact their margins. Finally, I’d also want to explore how reliant they are on their suppliers and any risks involved, the value and condition of any specialized equipment or other FF&E included in the sale, if there is anything proprietary about their processes or products, and how they differentiate themselves from the competition.

5/ Traffic Sign Manufacturer

📍 Location: California
💰 Asking Price: N/A
💼 EBITDA: $816,000
📊 Revenue: $2,638,880
📅 Established: 1969

💭 My 2 Cents: We may not always notice them driving around, but our vehicle-driven society couldn’t function without traffic control devices. This company, in operation for an awesome 50+ years, manufactures traffic control signs for cities, counties, and state agencies across California, Nevada, and Arizona. A key differentiator that sets them apart from most other sign manufacturers is that they recycle aluminum substrates from old traffic signs, reducing their costs and providing them with an additional revenue stream. They are also in a very desirable niche with their government customer base. The regulations and specifications around their products make it challenging for a new supplier to gain a complete understanding of the relevant code, providing a moat against potential competitors. I’d want to get a handle on their revenue split between new signs and recycled materials, how they bring in new business and if bidding is involved, who their key competitors are, any required licenses or certifications, the size and roles of the staff, and how reliant they are on the owner and what will be involved in replacing them. This business requires a lot of specialized expertise, so I’d want to be sure the needed institutional knowledge is there post-transition. If so, this company should continue to be a proven cash cow.