New Deals: A freight business, sign and banner manufacturer, and 3 other finds

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NEW DEALS

1/ Freight Business

📍 Location: Meriwether County, Georgia
💰 Asking Price: $2,100,000
💼 EBITDA: $512,206
📊 Revenue: $4,389,059
📅 Established: 2014

💭 My 2 Cents: The freight industry isn’t particularly exciting, but as we’re reminded every day with all the trucks on the road, it provides a critical service that’s always in demand. This freight company has going for it a modern fleet, experienced team, and established client base, all of which help drive their strong revenue numbers. They operate from a 4-acre property, bringing in an additional revenue stream by offering truck and trailer parking. I really like how their asking price includes $800K of FF&E and the property, but I’d need to check on its condition. If it’s in good condition, that would cover a significant portion of the asking price and could help lower SBA loan rates and extend the payback period, which could significantly increase yearly cash flow to a new owner. I’d want to review their financials for the last 5 years to see how well they performed during Covid, to what extent their earnings have grown since then, and how vulnerable they are to fluctuations in fuel prices  I’d also need to better understand who their main clients are, the types of jobs they routinely do, where their new leads and jobs come from, and how susceptible they are to local and national competition. Finally, there should be a lot of room for growth here, so I’d want to explore their current utilization rates and what would be involved in expanding their operations.

2/ Sign and Banner Manufacturer

📍 Location: Saint George, Utah
💰 Asking Price: $3,050,000
💼 EBITDA: $939,000
📊 Revenue: $6,100,000
📅 Established: 1996

💭 My 2 Cents: This company specializes in producing high-quality signs and banners and has a well-equipped facility with various printers, sign-making equipment, and vehicles. In business for 30 years, they have grown to where they now have 42 employees, indicating a strong reputation for quality work. While their healthy cash flow and reasonable asking multiple are great, what really makes this deal stand out is the $1.5M of FF&E and $600K of inventory included in the sale. This means that two-thirds of the asking price goes towards real tangible items, which I always love because it provides a nice barrier to entry in addition to downside protection against the worst-case scenario. I’d need specific details on the FF&E and inventory, and I’d want to look into the revenue split between their different services and products, who their main clients are, the level of their repeat business, whether they face any challenges with increasing labor and material costs, and how they distinguish themselves from their competitors and win new business. I’d also want to get a handle on any licensing or certification requirements, the different roles and experience of the staff, and what the owner does day-to-day. If that all checks out, then this is a consistent money-maker that has been run by the owner since day one and is being offered with up to 10% seller financing.

3/ Non-Emergency and Ambulatory Transport Company

📍 Location: Flagler County, Florida
💰 Asking Price: $4,035,251
💼 EBITDA: $1,147,764
📊 Revenue: $3,593,901
📅 Established: 2018

💭 My 2 Cents: This business provides both non-emergency medical transport (NEMT) and COPCN certified ambulatory transport in the greater Northeast Florida area, with these two distinct but highly complementary services both about as essential as it gets. On the NEMT side, I like that there can be long-term contracts in place with nursing homes, hospitals, and care facilities, leading to very consistent and pre-scheduled demand. The ambulatory transport side can fluctuate more, but contracts here can also be very sticky given the strict licensing and certification requirements involved. I like that the company is on an upward growth trajectory, having recently signed four new hospital contracts, as this shows strong demand for their services. I also like their strong cash flow and that $950K of FF&E, including a fleet of 16 vehicles, is covered in the sale. I’d need to review their financials to understand how consistent their earnings have been. I’d also want to know the revenue split between their two services, if they have individual and institutional clients, the level of their repeat and recurring business, the nature and terms of their standard contracts, if they face much competition, and how they acquire new clients. Finally, I’d need to check on any pending legal issues or liabilities, the condition of the FF&E, and whether the current staff and equipment could support expansion. Given Florida’s growing population (and huge number of seniors), this business could be a real winner.

4/ Disaster Remediation and Restoration Company

📍 Location: N/A
💰 Asking Price: $3,200,000
💼 EBITDA: $557,000
📊 Revenue: $5,041,036
📅 Established: 2016

💭 My 2 Cents: I really like that this contractor handles both disaster remediation and subsequent restoration work for residential, commercial, and industrial clients. They are also set up nicely to capture new business as they are IICRC-certified and enrolled in multiple third-party administrator insurance programs for loss remediation. I’m generally a big fan of disaster remediation specialists as there will always be a need for their services, while being certified and enrolled with insurers helps ensure a steady stream of future work. Given their ability to undertake remodeling and renovation projects, they’re also positioned to fully capitalize on their relationships with remediation clients who may need their additional services. I’d want to know how much variance and seasonality there is in demand for their services, what the breakdown in revenues is between their different services, the average scope and duration of their projects, how they source new clients, and who their key competitors are. I’d also need to understand their licensing requirements, how they work with insurers, the qualifications and experience of their staff, and the key personnel staying post-transition. With an enhanced marketing and sales effort, a new owner should be able to build on this proven cash producer.

5/ Long Island Bakery Chain

📍 Location: Melville, New York
💰 Asking Price: $7,900,000
💼 EBITDA: $1,800,000
📊 Revenue: $13,000,000
📅 Established: N/A

💭 My 2 Cents: In business for over 50 years, this bakery operates from multiple locations across Long Island, NY. It’s always awesome to find such old companies, as there’s no substitute for the reputation and dedicated following that can come from operating successfully in a community for so long. I also really like their robust scale, experienced team, and impressive revenue and cash flow numbers. I’d want to see more detailed financials, but if these are the sales they do every year, then you’re in pretty good shape. It appears they primarily sell directly to consumers, but I suspect you could also use the current facilities to supply commercial accounts throughout Long Island and NYC. There could potentially be a lot of value in this brand that could be realized by expanding into additional distribution channels. I’d need detailed information on each of their locations as well as the terms of the relevant leases, the breakdown in sales between their different locations, how they handle fluctuations in ingredient costs, if they face much local competition, and the marketing strategies they currently have in place. I’d also want to scope out the nature and condition of the equipment and fixtures included in the sale, the qualifications and experience of their staff, and the extent to which additional sales channels could be supported by current operations. Add it all up, and this deal offers both high cash flow and the chance to build on a really popular legacy baked goods brand.