New Deals: A truck and fleet maintenance company, painting company, and 3 other finds

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NEW DEALS

1/ Truck and Fleet Maintenance Company

📍 Location: California
💰 Asking Price: $2,500,000
💼 EBITDA: $911,054
📊 Revenue: $2,801,574
📅 Established: 2004

💭 My 2 Cents: This company provides heavy-duty truck and fleet maintenance, diagnostic, and repair services for commercial and individual clients. They have 8 employees, all of whom have been with the business for many years, including a manager who handles the customer-facing front end of the business while the owner works the back end. I like their service agreements with large corporate clients, which help to support their consistent earnings and their solid online presence with their effective use of Google advertising. I’d want to dig more into the standard terms of their long-term contracts, if they face any client concentration issues, how they distinguish themselves from their competitors, the nature and condition of the FF&E included in the sale, the option for renewal of the lease (which expires 1/1/2026) for their facility, and what would be involved in expanding their operation. This looks like a really steady cash producer and given their location in the massive southern California market, there should be some nice growth potential here.

2/ Painting Company

📍 Location: California
💰 Asking Price: $3,800,000
💼 EBITDA: $1,325,540
📊 Revenue: $3,828,571
📅 Established: 1994

💭 My 2 Cents: I like painting companies with a proven track record as they’ve shown they can be successful in a very competitive space where there are few barriers to entry. This company has operated for over 25 years, serving a balanced mix of commercial (50%) and residential (50%) clients. I like their diverse client base, reducing the risk of overexposure to any one sector of the economy, team of 27 employees, and high gross margins and strong discretionary earnings. I’d want to look into how they source new business, their current backlog and pipeline, how material and labor costs affect their profit margins, if there are any challenges in retaining skilled workers, and if they have an online presence (check for any reviews). If that all checks out, then as another plus, the seller is willing to continue to qualify the business using their license for up to a year post transaction and will ensure a buyer has all the training necessary to manage the business, even if they have no direct experience.

3/ Tutoring Centers

📍 Location: California
💰 Asking Price: $4,150,000
💼 EBITDA: $1,772,834
📊 Revenue: $3,578,531
📅 Established: 2020

💭 My 2 Cents: Given how important education is to families, there will likely always be demand for tutoring. This business operates two franchise tutoring centers in LA County with strong brand recognition and a proven curriculum. I especially like how their focus on a high-income demographic and their ongoing contracts with school districts let them bring in a consistent solid revenue stream while generating extremely impressive margins. They operate in a larger market where there are basically an unending number of families and students looking for tutoring help, so there should also be the opportunity to expand with satellite centers at a low incremental cost. With any franchise purchase, it’s extremely important to understand everything the agreement entails. I’d need to get a detailed handle on the franchisor support provided, all the fees and costs involved, and any requirements or limitations related to either daily operations or the expansion or sale of the business. I’d also want to understand what percent of their revenue is tied to school contracts, what is involved in the renewal of these contacts, how they attract and keep individual students, if there are any licensing or regulatory requirements, and the roles and responsibilities of their staff. 

4/ Behavioral Health Franchisor

📍 Location: Utah
💰 Asking Price: $5,231,000
💼 EBITDA: $1,187,614
📊 Revenue: $2,260,160
📅 Established: 2021

💭 My 2 Cents: This behavioral health business functions as an intensive outpatient treatment program specializing in co-occurring disorders such as addiction, anxiety, depression, and PTSD. They operate on a franchise model with 22 current and pending locations nationwide, generating revenue through franchise fees, training, and ongoing royalties. While this business is clearly newer than what I normally would go for, I really like the significant upside potential here, as the owner has built a franchise model that can scale quickly. I also like that a new owner doesn’t need a behavioral health background, as they would be expected to step into more of a CEO role handling day-to-day operations, and that the sellers are looking to retain a minority ownership stake while bringing in a strategic partner or investor who can help them grow to over 100 locations. I’d need more detail on the standard terms of their franchise agreement, how capital intensive it is to open a new location, how quickly new locations become profitable, how they acquire new patients, the typical breakdown in revenue between private pay and insurance reimbursements, and any licensing requirements (which could vary by state).

5/ Trucking Company

📍 Location: Missouri
💰 Asking Price: $3,900,000
💼 EBITDA: $505,514
📊 Revenue: $4,611,231
📅 Established: 30+ Years

💭 My 2 Cents: Trucking companies are great because they often come with a lot of hard assets that can represent a significant part of the purchase price. This is the case with this business, with their $2.5M of FF&E that includes an extensive fleet of 24 branded tractors and 80 trailers. They have been in operation for an impressive 30+ years, providing a range of transportation solutions for different industries across the Midwest region (a logistics hub with consistent freight movement). They have excellent facilities, as they base out of a 4.5-acre industrial-zoned property that includes 55 trailer spots, 30 truck spots with 110V outlets, and a fuel island. However, I’d need to check on the age and condition of their fleet and if any equipment is pending replacement. Not all of their real estate is for sale, so I’d also want to understand what part, valued at $1M, is included in the asking price. More broadly, I’d want to know who their main clients tend to be and what industries they represent, how many long-term contracts they normally have in place and the length and terms of these contracts, how they bring in new business, how sensitive they are to fluctuating fuel prices, and, given their importance, how they find and keep their experienced drivers. They currently do minimal marketing, so a new owner should be able to leverage their excellent record and reputation to help drive growth.