New Deals: An electrical contractor, glass manufacturing systems supplier, and 3 other finds

Sign Up | Podcast | Sell Your Business | Work With Me

NEW DEALS

1/ Electrical Contractor

📍 Location: Florida
💰 Asking Price: $3,900,000
💼 EBITDA: $1,150,294
📊 Revenue: $4,550,850
📅 Established: 1990

💭 My 2 Cents: While electrical contractors are on everybody’s list of favorite boring businesses, it’s always a plus when they have been in operation for 35 years like this Florida company. They have carved out a niche focusing on high-end residential customers, with their revenues split across new construction (70%), remodels (15%), and service calls (15%). I like how they are well-staffed with a team of 25 full-time employees, have strong margins, and include $150K of inventory in the sale, which sets a new owner up to hit the ground running. I’d want to check on the consistency of their earnings over the past three years, how much work they have in progress or in the pipeline, what relationships they have with general contractors or institutions, how challenging it is to find and retain licensed electricians, and if their current staffing and equipment could support increasing their volume of service calls with the potential recurring revenue involved. The sellers are looking for a buyer with an electrical background, but I’d want to ask if they’re open to someone who brings in a qualifying agent with the needed license.

2/ Glass Manufacturing Systems Supplier

📍 Location: New Jersey
💰 Asking Price: $4,140,000
💼 EBITDA: $920,000
📊 Revenue: $4,594,000
📅 Established: 1932

💭 My 2 Cents: This fourth-generation business has been at it for an impressive 90+ years, providing manufacturing, maintenance, and engineering solutions for the glass manufacturing industry. What’s really attractive here is their stellar reputation built over decades and their specialization in what is essentially a vertical niche, as they are involved in every aspect of glass manufacture from plant design to consulting on operations. I also like their stable client base and strong market position, as seen in their consistent earnings (averaging $920K EBITDA on $4.6M revenue the past three years). It shouldn’t come as a surprise though, as glass is used across commercial construction, automotive, aerospace, and solar/energy—growing industries with strong capital budgets. I’d want to know if there is any client concentration risk, what their supply chain and lead times look like, whether there is any proprietary tech, who holds the engineering braintrust and knowhow, how they bring in new business, the condition of the FF&E and inventory included in the sale, the state of their lease, and if they face any pending capital expenditures. Given their lean staff of 11, this opportunity should appeal to a buyer looking for a strong industrial foothold with relatively low headcount.

3/ Towing Company

📍 Location: Nevada
💰 Asking Price: $3,250,000
💼 EBITDA: $853,523
📊 Revenue: $3,386,960
📅 Established: 2012

💭 My 2 Cents: Regular readers know I’m a fan of towing companies with their essential services, straightforward operations, and predictable demand for the foreseeable future given our reliance on motor vehicles. This particular business operates 24/7 with a fleet of 26 trucks, serving light to medium-duty vehicles throughout their Nevada county. I really like how their revenue is diversified across insurer contracts, vehicle logistics, commercial accounts, and consumer calls from the public at large. What also stands out are their scale of operations given their relatively lean staffing and their strong cash flow and margins. I also like that the company holds the required state and business licenses, their facilities are leased through 2035, and their large fleet should provide substantial asset valuation in an acquisition. However, I’d need more detail on the value and condition of their fleet, if they face any pending major equipment maintenance or replacement costs, how challenging it is to retain drivers, and what possibilities might exist to add heavy duty towing or impound/storage services to their capabilities. The owner is exiting due to illness, but is willing to stay on for a reasonable period to ensure a seamless transition.

4/ Precision Parts Manufacturer

📍 Location: Florida
💰 Asking Price: $2,000,000
💼 EBITDA: $532,162
📊 Revenue: $1,040,078
📅 Established: 1962

💭 My 2 Cents: This precision machining business, in operation for over 63 years, specializes in producing proprietary parts for military defense contractors. With just five employees, they generate over $1M in revenue and bring in great margins, while their AS9100 and ISO9001 certifications let them serve as an approved supplier for the Department of Defense and related defense industry. Military contractors are a great client base as they generally are extremely sticky and will keep spending regardless of the economic backdrop. I’d want to get a handle on their level of repeat and recurring business, what proprietary products or IP the business holds, when their certifications need renewal, if their current contracts transfer to a new owner, what their current utilization rate is, and what options there might be to expand their operations with existing assets. Ultimately, if they are positioned for significant government contracting opportunities, as the seller implies, then this could be a real winner.

5/ Excavating Company

📍 Location: Colorado
💰 Asking Price: $6,700,000
💼 EBITDA: $1,613,029
📊 Revenue: $5,603,968
📅 Established: 2012

💭 My 2 Cents: With a reputation for quality work on large-scale projects, this established Denver-based excavating company has both a sizable volume of ongoing projects and a solid backlog of new jobs. They come with $4.3M of equipment included in the sale, providing a substantial barrier to entry and valuable tangible assets. Their lean team of eight and streamlined operations also let them achieve a high cash flow and strong (28.8%) EBITDA margin. I’d need to understand the other ancillary services they provide and what percentage of their revenue this represents, if they are often involved in bidding for future jobs, who their main competitors are, if they are bonded or licensed for government work, the condition and projected lifespan of their equipment, the terms and length of their current facility lease (any purchase option?), and if their key employees are expected to stay post sale. While the partial seller financing is nice, what really makes this deal is the rare combination of steady infrastructure work and growth potential in a booming Denver metro area.