New Deals: A B2B travel company, moving company, and 3 other finds

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NEW DEALS

1/ B2B Travel Company

📍 Location: Virginia (Remote)
💰 Asking Price: $4,500,000
💼 EBITDA: $800,000
📊 Revenue: $6,100,000
📅 Established: 2000

💭 My 2 Cents: This company has been a premier provider of group travel services for nearly 25 years, specializing in customized itineraries for clients from sports teams to corporations. These are great customers to have in my opinion, since they come with more steady revenue (from repeat business), higher profit margins, and less seasonality. This business is also home-based, which is great for those of you who are looking for a remote business that can operate with minimal assets and overhead. While the owner is retiring, another positive is that there is an experienced general manager who is slated to stay with the company post-sale. The travel industry is closely linked to the general economy, so I’d want to review their financials for the past 10 years to see how well they do under different economic conditions and, in particular, how well they weathered and then bounced back from the Covid pandemic. I’d also need to look into their level of repeat business (I’m guessing there’s a lot of it), their relationships with vendors, how they gain new clients, how much competition they face, and if they have an online presence and reviews. If this deal interests you, then you should be very happy to hear that the seller is offering financing and an extended transition period.

2/ Moving Company and Broker

📍 Location: Virginia
💰 Asking Price: $2,100,000
💼 EBITDA: $624,000
📊 Revenue: $5,000,000
📅 Established: 2018

💭 My 2 Cents: This is a great opportunity to acquire two complementary and interrelated businesses, as this deal includes both a moving company and a moving broker. While each has their own separate financials and files independent taxes, their operations are closely intertwined. I really like the dual revenue streams here and that the two businesses can drive customers to each other. The moving broker in particular is not only a great source of leads for the moving company, but also brings in revenue even when the moving company can’t accommodate a given job. I also like the scale of the combined businesses. They have 40 employees and I assume significant assets in the form of box trucks and related equipment, though I’d need to check on the exact nature, value, and condition of the FF&E included in the sale. I’d also need to better understand how each business is performing independently, how specifically they are intertwined, how they market to and acquire new clients, the qualifications and experience of the staff, how reliant the businesses are on the current owner, and the proposed transition plan. Ultimately, while there’s a lot of competition in the moving space, I see the synergy of these two businesses as the competitive advantage needed to stand out and scale.

3/ Commercial Rigging Company

📍 Location: District Of Columbia
💰 Asking Price: $2,100,000
💼 EBITDA: $858,530
📊 Revenue: $3,740,712
📅 Established: 1969

💭 My 2 Cents: This company provides commercial rigging, hauling, and crane services for clients like government agencies, museums, and Fortune 1000 firms. I love their over 50 years of experience and the magnitude of their clients, as the stellar reputation this represents can be critical in continuing to bring in and keep new business. I also really like their $2.4M backlog, nearly $1M in FF&E, and unionized workforce that includes key personnel who are willing to sign ongoing employment agreements post-transaction, which is essential for maintaining access to their broad client base. I’d want to dig into the revenue breakdown between their different services, how they win new jobs and the typical bidding process involved, the nature of their relationship with the union, the roles and responsibilities of their staff, the types and conditions of the equipment and machinery in the FF&E, if there are any licensing requirements, and how reliant the business is on the owner. If that all checks out, then this business is being offered at a very attractive multiple, given their reputation, high-value client base, backlog, and assets.

4/ Staffing and Commercial Janitorial Company

📍 Location: Miami, Florida
💰 Asking Price: $14,000,000
💼 EBITDA: $4,706,206
📊 Revenue: $32,607,736
📅 Established: 2014

💭 My 2 Cents: This business provides tailored staffing and janitorial services to over 200 clients across various industries, including hotels, restaurants, and commercial offices. From their base in Florida, they are also now expanding into other states. The janitorial service should come with a lot of recurring revenue and contracts, and the staffing business should come with a good amount of repeat business as well. They now have a workforce of 1,000 employees, meaning there should be an established and experienced management team in place that should be able to help a new owner. The seller is also willing to remain on a consulting basis to ensure a smooth transition.  I’d need to get a handle on the revenue split between their staffing and janitorial services, what is involved in operating these two distinct business lines, the challenges entailed in hiring and retaining such a large workforce, and who their main competition is both locally and nationally. I’d also want to explore their current expansion plans and what will be involved in continuing to grow the business. I don’t often share businesses this big, but this company is asking such an attractive multiple that I couldn’t help myself.

5/ Custom High-End Home Designer

📍 Location: Albany, New York
💰 Asking Price: $5,200,000
💼 EBITDA: $2,275,441
📊 Revenue: $23,051,529
📅 Established: 1999

💭 My 2 Cents: This boutique business offers high-quality home design and project management services tailored to high-net-worth residential clients. I like how they employ a lean full-time office and design staff while subcontracting all site construction and related work, letting them complete a very impressive amount of projects while operating with minimal overhead. This streamlined business model also makes them very scalable, while their experienced management personnel can provide a new owner a safety net while they get up to speed on the business. Finally, I love the multiple on the asking price and the owner is open to providing both seller financing and a 1-2 year training period. I’d need more detail on the size and scope of their typical job, how much work they have in progress and on backlog, the challenges related to managing subcontracted labor and ensuring quality control, who their key competitors are, and how they bring in new business and differentiate themselves from the competition. Given their 25 year history and awesome current revenue numbers, I’m assuming their high-end market is not that affected by downturns in the economy, but I’d also need to check their financials for the past 10 years to verify the consistency of their earnings.