New Deals: A towing company, sprinkler service company, and 3 other finds

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NEW DEALS

1/ Towing Company

📍 Location: Arkansas
💰 Asking Price: $4,000,000
💼 EBITDA: $685,552
📊 Revenue: $2,244,533
📅 Established: 1980

💭 My 2 Cents: This company has been a leader in its market for over four decades, offering a range of towing services for both standard vehicles and large semis. They have a steady client base and a long term GM and experienced staff in place, so they are well-structured for continued success under new ownership. I really like that they have averaged over $600K in cash flow every year since 2018 and that they come with $800K in vehicles and equipment and $1.2M in real estate. Given their importance, I’d need more detail on their vehicles (a good sign is most were purchased since 2019), including their condition, projected useful life, and any pending capital expenditures. I’d want to look into their revenue breakdown between contracts with municipalities or insurance companies versus individual tows, what their annual maintenance and insurance costs look like, and how much competition they face in their market. I’d also be curious about how long the owner has held the business and why they are selling. Assuming the GM is locked in to stay post-sale, this looks like a solid turnkey opportunity that also lends itself to a more hands-off owner.

2/ Sprinkler Service Company

📍 Location: California
💰 Asking Price: $1,800,000
💼 EBITDA: $850,000
📊 Revenue: $2,495,000
📅 Established: 2019

💭 My 2 Cents: I’m always on the lookout for landscaping-related businesses in mild weather locations where you can count on year-round demand for their services. This LA-based company fits the bill, offering a comprehensive suite of sprinkler and associated landscaping services and a strong presence in the area’s affluent communities, helping generate an impressive, consistent monthly revenue exceeding $200K.  I really like their focus on sustainable landscaping and water conservation, as they have an innovative Water-Wise program that aligns with California's increasing environmental awareness and regulatory trends while establishing them as a well-known leader in the high-end irrigation niche. I also like their use of a proprietary sales process, custom scheduling and routing systems, and strategic vendor relationships that help them maximize their profitability. However, I’d need more detail on the size and roles of their staff, the nature and condition of any FF&E included in the sale, and why they are for sale after just five years in operation. I’d also want to get a handle on how much of their revenue comes from recurring services versus one-time projects, what their client retention rate is, and the day-to-day role of the owner. Finally, I’d sadly need to ask about the impact of the recent LA fires on their business. Hopefully, a new owner could be part of an effort to rebuild in an environmentally conscious way.

3/ Staffing Company

📍 Location: California
💰 Asking Price: $2,100,000
💼 EBITDA: $677,000
📊 Revenue: $2,900,000
📅 Established: 1988

💭 My 2 Cents: This long-established staffing company provides temporary and permanent employees for a range of office positions, with approximately 70-80% of their revenue coming from temporary hires and the remaining 20-30% derived from direct placement fees. I really like the temporary staffing business, as it is largely recession-resistant with businesses tending to rely more on temporary employees during economic downturns. I also like their stable base of repeat clients, while their shift to mostly remote operations has let them create a lean business model with significant cost savings. As is normally the case with staffing firms, it’ll be important to dig into the nature of their clients (and what industries they represent) and how they attract the pool of talent desired by these businesses. I’d also want to check if there are any client concentration issues, what their standard contracts for both temporary and permanent hires look like, how much competition they face from larger national firms, and if there are opportunities to expand into more specialized staffing areas, such as IT or healthcare. 

4/ Closet Manufacturer

📍 Location: Florida
💰 Asking Price: $3,500,000
💼 EBITDA: $1,159,292
📊 Revenue: $3,303,978
📅 Established: 1987

💭 My 2 Cents: Home improvement businesses in Florida are thriving, fueled by the surging luxury real estate market and an influx of affluent homeowners, retirees, and remote workers relocating to the state. This closet manufacturer primarily services high-end residential projects, completing approximately 200 jobs annually. They have really strong relationships with top homebuilders in their Southwest Florida area (where you can build year-round), seen in their 3-4 month backlog and $1.24 million in booked projects for 2025. A new owner can also count on a very experienced team in place, as an operations manager has been handling the day-to-day end of the business for an absentee owner for the past 7 years, aided by a staff of 15 with an average tenure of over 10 years. I also like that they are midway through a successful price increase that will continue to drive their revenue and margins. I’d want to know their level of repeat business from builders and designers, who their main competitors are locally, how sensitive they are to increases in the cost of materials, what production lead times and capacity look like, average project size and sales cycle, and what opportunities exist to expand into additional product categories like kitchen cabinets and bathroom installations.

5/ Electrical Contracting Company

📍 Location: Texas
💰 Asking Price: $1,900,000
💼 EBITDA: $667,522
📊 Revenue: $3,230,466
📅 Established: 1990

💭 My 2 Cents: This 35-year-old company handles industrial, commercial, and residential projects for both public and private clients. I like their solid base of government contracts that tend to be very sticky over time, ability to win private no-bid jobs based on their reputation and work relationships, and ongoing service contracts that provide a stable and predictable income stream. Plus, electrical work is essential and non-discretionary, making it less vulnerable to economic downturns. Other real positives are their robust team of 27 and the more than $600K of inventory included in the sale. I’d want to better understand what percent of their revenue comes from government contracts, what their current backlog and pipeline are, how they handle fluctuations in material and labor costs, what the turnover rate for electricians is and who holds the master electrician license, and who on the team is involved in the bidding process. Ultimately, as one of the fastest-growing states in the U.S., Texas is experiencing massive infrastructure projects, industrial expansion, and residential development—all of which are driving strong demand for electrical services.