New Deals: A land surveying company, communications and advertising agency, and 3 other finds

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NEW DEALS

1/ Land Surveying Company

📍 Location: Florida
💰 Asking Price: $1,995,000
💼 EBITDA: $578,695
📊 Revenue: $3,020,281
📅 Established: 1988

💭 My 2 Cents: Surveying isn’t very flashy, but it’s a regulatory and legal necessity for boundary disputes, construction permits, and title insurance. This land surveying company, in business for over 37 years, has established a strong reputation for accuracy and reliability and serves both public and private sector clients. They have solid numbers, a loyal client base, and come with $161K of equipment and $350K of AR included in the sale. I’d need more details on the AR to include whether it is aging cleanly or if it includes old or outstanding balances. I’d also want to get a handle on whether revenue is diversified or tied to a few developers or municipal clients, margins on different client types (government vs. private can vary significantly), how they source new work, the roles and responsibilities of their staff, and what opportunities exist to expand into growth sectors like renewable energy, infrastructure, or 3D scanning and mapping. If that all checks out, then you not only have a proven cash producer, but a business with a retiring owner who is a licensed Professional Surveyor and willing to stay on as a consultant to ensure a smooth transition.

2/ Communications and Advertising Agency

📍 Location: Maryland
💰 Asking Price: $2,900,000
💼 EBITDA: $950,000
📊 Revenue: $2,700,000
📅 Established: 2006

💭 My 2 Cents: This creative communications and marketing agency offers a full suite of high-quality services from market research and content creation to public relations and videography. I really like their mix of national and international clients, which helps insulate them from a downturn in any one sector, as well as their lean 13-person staff and strong margins. A real plus is their available cash on hand which a new owner could invest in growth by adding to their sales team. Importantly, the business has been externally reviewed and valued, meaning that all numbers presented have been verified and are based on signed tax returns. I’d need to look into the terms of their standard contract, their level of recurring revenue, how they currently bring in new clients, the org structure, and the nature and condition of the FF&E included in the sale. Ultimately, with the seller happy to negotiate an extended transition and financing, all signs point to continued success.

3/ Oilfield Services Business

📍 Location: Colorado
💰 Asking Price: $11,000,000
💼 EBITDA: $3,112,997
📊 Revenue: $29,237,578
📅 Established: 2010

💭 My 2 Cents: Did you know Colorado is home to one of the most active oil and gas basins in the U.S.? This Denver-based company is a diversified operator providing pipeline construction, facility services, workover rig operations, roustabout services, and trucking. I like their diversified service lines, broad client base, and steady recurring revenues. But what really catches the eye is the huge $9.2M in FF&E included in the sale, representing assets that could both serve as a moat and aid in financing. Given the importance of this equipment, I’d need to dig into how much is owned outright, their condition, and if any is pending major maintenance or replacement. I’d also want to check who the customers are (supermajors, independents, or mom-and-pop operators?), if there is any possible client concentration, what their backlog and pipeline look like, their safety record, the qualifications and experience of their 100+ employees, and what labor turnover looks like and whether there is wage inflation risk. This size business is not for the faint of heart, but this opportunity to acquire such a well-established operation warrants a serious look for someone seeking to get into or expand in the industry.

4/ Dry Cleaning Business

📍 Location: Florida
💰 Asking Price: $1,550,000
💼 EBITDA: $521,150
📊 Revenue: $3,205,367
📅 Established: 1925

💭 My 2 Cents: This dry cleaning business, in operation for an incredible 100 years, unsurprisingly holds a commanding position in their region. They have developed an awesome business model, featuring a central, state-of-the-art, self-contained plant that supports their network of strategically located retail storefronts, which serve a mix of residential and commercial clients. I love how this business model lends itself to economies of scale, as you can leverage the central plan to open more retail locations, with margins going up for every location added. I’d need more information on their retail stores, including how well each location is performing, their lease terms, visibility, and whether there are restrictions on signage or hours. I’d also want to know if a delivery fleet is included in their assets, the age of their washers, presses, conveyors, and boilers (these can be very expensive to replace), the breakdown of their staff by location, % of revenue that’s retail walk-in vs commercial, and whether there are corporate contracts in place. Assuming a well-trained team is in place, this could be an attractive turnkey for a hands-off owner or investor.

5/ Electronic Recycling & IT Asset Recovery Business

📍 Location: California
💰 Asking Price: $2,500,000
💼 EBITDA: $562,632
📊 Revenue: $5,160,025
📅 Established: 2007

💭 My 2 Cents: This Southern California-based company is beautifully positioned to meet the growing demand for environmentally responsible e-waste recycling and IT asset recovery.  With 40 employees operating out of multiple leased facilities, they offer the secure collection, refurbishment, resale, and disposal of electronics for a wide mix of commercial, institutional, and government clients. I like their excellent reputation in the ITAD (IT Asset Disposition) space, key industry certifications, and use of advanced processing technology that ensures their compliance with environmental standards. I also like that they come with $297K in FF&E and $405K in inventory, representing a nice chunk of the asking price. I’d want to better understand how they acquire clients and then bring in the e-waste, how they charge for their services, if their resale channels for refurbished equipment are internal or through third parties, who their main competitors are for their e-waste disposal versus asset recovery services, the number of their current facilities, and if they could support additional volume. Ultimately, this looks like a proven profitable business with a lot of positive tailwinds behind them given society’s increasing environmental awareness.