New Deals: A robotics company, waste management firm, and 3 other finds

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NEW DEALS

1/ Robotics Company

📍 Location: Tennessee
💰 Asking Price: $6,000,000
💼 EBITDA: $1,494,054
📊 Revenue: $5,839,232
📅 Established: 1999

💭 My 2 Cents: This robotics company specializes in designing and manufacturing custom equipment for industries such as automotive, aerospace, and general metalworking. I like that they have carved out a strong client base and excellent reputation in their niche and that most of their revenue comes from repeat customers who are suppliers to ultimate end users. I also really like that their expansion into new OEM areas has provided them with a clear pathway to further growth. I’d need to better understand the revenue breakdown for their different products, how they stay current with technological advances, their average annual R&D expenses, their normal lead time for producing new machinery, how they win new business, and who their key competitors are. I’d also want to get a handle on any licensing requirements, the condition of their FF&E, and the day-to-day role of the owner. Things look pretty good to me, and it looks even better when you consider that this deal is SBA pre-approved and that they operate out of a 24,000 sq. ft. facility that can be purchased, which will extend the amortization on a loan.

2/ Waste Management Firm

📍 Location: Martin County, Florida
💰 Asking Price: $3,500,000
💼 EBITDA: $865,755
📊 Revenue: $2,812,045
📅 Established: 2009

💭 My 2 Cents: Waste management companies are stable, essential, and always in demand. Basically, everything you want in a boring business. This particular company provides waste collection services for residential and commercial clients as a subcontractor for their Florida county's master contractor. I really like their strong margins, the 15+ years they’ve been operating, and that they come with $1M in equipment and $250K in inventory included in the sale. However, given that they are only a subcontractor for the county, it will be critical to understand the nature of their relationship with the main contractor and the risk that they might lose this work. How dependent are they on this contract and, if they were to lose it, what opportunities are there for them to find other clients in their local market? I’d also want to look into any licensing requirements, the qualifications and experience of their staff, and the condition of their equipment, inventory, and facility.

3/ Traffic Control Business

📍 Location: Idaho
💰 Asking Price: $3,600,000
💼 EBITDA: $769,125
📊 Revenue: $3,501,284
📅 Established: 1998

💭 My 2 Cents: Traffic control is a key part of any road work (imagine trying to drive around a construction site without it), and given that new infrastructure projects keep popping up, it’s something that will always be in demand. This business operates year-round, serving construction and utility companies across Idaho and Washington. I like that they come with the management, staff, and equipment a buyer would need not only to continue their solid profitability but also to support future growth. I also like that they operate out of a $1.3M 5,800 sq. ft. facility that is included in the asking price. This makes it possible to extend the maturity of an SBA loan and help make monthly payments more manageable. I’d want to dig into the revenue breakdown between their public and private clients, any possible client concentration issues, the typical process for winning a new job, their level of repeat business, and how much competition they routinely face. I’d also want to know if there are any licensing requirements, the possible challenges in maintaining their staff of 60, and how dependent they are on the current owner. If that all checks out, then with their area’s ongoing increase in population and associated development, this business offers both a proven track record and real growth potential.

4/ Manufacturer and Distributor of Automation and Control Parts

📍 Location: N/A
💰 Asking Price: $3,700,000
💼 EBITDA: $815,833
📊 Revenue: $7,400,000
📅 Established: 1990

💭 My 2 Cents: This business is a manufacturer and distributor of parts used in the oil and gas industry. Their strengths include a broad product line, valuable distribution relationships with 10 OEMs, and 250 loyal clients. I also like their multiple business lines given their internal manufacturing capabilities and broad reach across the North American gas and oil sector, while their investment in operational improvements and growth in revenue beyond pre-COVID levels signal a well-managed business poised for further expansion under new leadership. I’d be interested in the revenue split between their manufacturing and distribution activities, if they have any exclusive distribution relationships, how they both acquire and keep their clients, and how they differentiate themselves from their competitors. I’d also want to understand the roles of their eight employees and the owner to determine what a viable transition plan could look like.

5/ Trucking Business

📍 Location: Arden, North Carolina
💰 Asking Price: $1,500,000
💼 EBITDA: $500,000
📊 Revenue: $5,616,140
📅 Established: 2012

💭 My 2 Cents: The need for reliable freight delivery services is literally indispensable for many industries. This home-based business operates a fleet of 30 trucks and trailers and comes with a team of drivers and support personnel that handles all of the day-to-day operations. What really stands out here is that it includes equipment valued at approximately $1.8M. With an asking price of $1.5M this means you have hard assets that more than cover your total cost, not to mention the cash flow you will be generating. Still, it will be important to verify the value, condition, and projected useful life of their fleet and associated equipment. I'd likewise want to review their financials for the last few years to check on the stability of their revenues and their average annual spending on maintenance, repairs, and new equipment. Finally, I’d need to understand their relationships with brokers and how they source new jobs, seasonality in the business, how they compete with other trucking companies, how they hire and retain their drivers, the current utilization rate of their fleet and drivers, and what possibilities might exist for further growth.