New Deals: An electrical repair and maintenance business, environmental remediation and demolition contractor, and 3 other finds

Sign Up | Podcast | Advertise | Work With Me

NEW DEALS

1/ Electrical Repair and Maintenance Business

📍 Location: Las Vegas, Nevada
💰 Asking Price: $1,513,000
💼 EBITDA: $753,590
📊 Revenue: $1,608,891
📅 Established: 2012

💭 My 2 Cents: This electrical contracting company handles installation, repair, and maintenance work for both residential and commercial clients. I like their straightforward operations, different revenue streams, and strong margins. I also like how the business comes with a skilled staff and 6 heavy duty vans, all of which are stored at the technicians’ homes, so there is no need for an expensive central location. It’s also nice that they have a third party as the Qualifying Individual for licensing purposes who is willing to keep this same arrangement post-sale, meaning there won’t be any licensing challenges for a new owner. I’d want to check on how their revenue is distributed across their different services, how consistent their numbers have been over the past 3 years, how many jobs they do a year and their average ticket size, their level of repeat business, how they source new work, and who their main competition is. Given their margins, you could be looking at some real growth potential, so I’d also want to look into how much extra capacity there is with their current staff and fleet and what opportunities exist for expanding their services or geographic reach. I’m always a fan of essential services and with experienced technicians, no licensing headaches, and seller financing available, this deal could be an exciting option.

2/ Environmental Remediation and Demolition Contractor

📍 Location: Indiana
💰 Asking Price: N/A
💼 EBITDA: $733,117
📊 Revenue: $6,040,648
📅 Established: 2001

💭 My 2 Cents: I like how this demolition and remediation company provides a critical service that will only be in increasing demand as communities continue to strengthen their regulations governing environmental hazards. They are also in an industry that has sizable barriers to entry, as new competitors need to meet the strict licensing and certification requirements involved (current employees with the necessary licenses will be staying on post-transition). I like that this company has 52 employees, allowing them to take on jobs of all sizes and letting a new owner pursue much larger projects if wanted. I also like that they rely on advanced software capabilities for comprehensive project tracking and mapping, which helps them differentiate from competitors, that the sale includes nearly $1M in FF&E, and that their facility is worth about $1.5M. I’d need to understand the breakdown in their revenues between demolition and environmental remediation, the types of projects they routinely handle, who their key clients are, if there are any client concentration issues, how they acquire new clients, and if there is any seasonality to their workflow. I’d also be curious as to what sets their software apart, the specifics of what’s included in the FF&E, if there are any pending legal issues or liabilities associated with the business, and if there are any anticipated regulatory changes that might affect their operations. Assuming there are no issues, this could be a great opportunity.

3/ Fire Protection Systems Business

📍 Location: Miami-Dade County, Florida
💰 Asking Price: $5,800,000
💼 EBITDA: $1,637,703
📊 Revenue: $8,719,129
📅 Established: 2001

💭 My 2 Cents: Regular readers know I love businesses like this that provide a legally mandated essential service. This company, which both installs and services fire protection systems, has built an excellent reputation over more than 20 years in operation and has grown to where they now have 42 employees. While new construction currently accounts for 80% of their revenues and maintenance only 5%, there should be an opportunity to expand the services side of their business, which would provide a nice steady recurring revenue flow. It’s important to note that this business is currently owned by two partners. The majority partner is looking to retire, but the minority partner who handles the day-to-day operations would like to stay on. This could be a major benefit to an acquirer without direct experience in the space, but also adds a layer of complication in establishing new leadership. I’d want to see if the remaining partner would be interested in rolling equity into the transaction and, hopefully, that they would continue to hold the required licenses. I’d also need to know more about their client base, how new contracts are won to include any competitive bid processes, how they compare with their competitors in terms of pricing and service offerings, and if they face any pending legal issues or liabilities associated with the business. If everything checks out, then this sale also includes $350K of FF&E and $900K of working capital, which is always a plus.

4/ Non-Emergency Medical Transport

📍 Location: Tennessee
💰 Asking Price: $2,500,000
💼 EBITDA: $812,895
📊 Revenue: $3,173,382
📅 Established: 2004

💭 My 2 Cents: It’s hard to think of a more essential service than medical transport. It’s something people will always need and it’s never at risk of disruption due to economic cycles (as patients require transport in good times and bad). I like this company’s impressive size with 50 employees, strong margins, and that they’ve always been family-owned as this should translate into a stellar reputation. They have turned in some pretty amazing growth from 2022 through 2024, doubling sales during this time. While it’s great to see this level of performance, I’d definitely need to understand what factors enabled this rapid growth and why it wasn’t achieved until now. I’d want to see detailed financials for the past 5 years and I’d need to establish that they can sustain their current revenues as well as continue to grow going forward. I’d also want to get a handle on their client base and the degree they deal with healthcare practices versus individual patients, the split between private payments and insurance reimbursements, if client concentration poses a risk, how they attract and retain new clients, and who their main competitors are. They are at core a transportation business, so I’d finally need to dig in on the quality and condition of their fleet and if there are any challenges in attracting and keeping qualified drivers.

5/ Tree Care Business

📍 Location: Florida
💰 Asking Price: $3,000,000
💼 EBITDA: $628,500
📊 Revenue: $2,526,696
📅 Established: 1990

💭 My 2 Cents: While not specifically an essential business, quality tree care is very important to maintaining the quality and appearance of commercial as well as residential properties. Beyond the steady demand, this company has a highly skilled staff of 16, a Florida location that ensures their services are needed year-round, and expertise in local trees such as Live Oaks and Palm Trees that require specialized care. The owner is an arborist who is very hands-on in the business. While his main goal with the sale is to lighten his schedule and simplify his life, he is willing to negotiate an extended transition period and indefinite support as needed, which could help de-risk the possibility of losing customers who might value their personal relationship with the retiring owner. I also like that the sale comes with a very substantial amount of FF&E valued at nearly $2M. With an asking price of $3M, that means that 2/3rds of your money is going to purchase hard assets. I always love when there are tangible items included as a significant portion of a deal, as this helps insulate you from new entrants and provides value that will still be there in the event of a worst-case scenario. While this all looks promising, I’d need more details on the extent of the owner’s involvement in the business and the nature and condition of the FF&E. I’d also want to dig into the split between their commercial and residential work, their standard job size and average client lifetime value, the extent of their recurring business, any client concentration issues, who their main competitors are, and how they bring in new business.