New Deals: An oil field disposal services company, metal fabrication shop, and 3 other finds

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NEW DEALS

1/ Oil Field Disposal Services Company

📍 Location: Texas
💰 Asking Price: $6,500,000
💼 EBITDA: $952,965
📊 Revenue: $6,500,000
📅 Established: 2014

💭 My 2 Cents: This trucking company specializes in hauling and disposing of non-hazardous materials for oil and gas wells. I like the stable demand for their services, which are essential to the functioning of oil and gas fields, as they are largely insulated from the fluctuations that other oil and gas companies can face due to changing prices. I also like their straightforward business operations, reputation for high-quality customer support, robust staff of 37, and substantial fleet and related equipment. I’d want to better understand who their main clients are and if there are any concentration issues, their levels of repeat business and recurring revenue, how they win new contracts, who their key competitors are, the condition and projected lifespan of their equipment, and their ability to expand into other areas or extend their geographical reach. If that all checks out, then this deal also has going for it that the seller is offering financing and an extended transition to ensure the business is in good hands.

2/ Metal Fabrication Shop

📍 Location: Florida
💰 Asking Price: $3,475,000
💼 EBITDA: $818,881
📊 Revenue: $2,621,232
📅 Established: 1989

💭 My 2 Cents: This manufacturing and fabrication company primarily focuses on custom work for B2B clients. They operate from 2 facilities on a 2+ acre site with a staff of 19 that includes long-standing machines and fab shop managers. I really like their strong cash flow, impressive margins, and the very significant amount of assets included in the sale. Together, the $1.125M in real estate and $1.8M in FF&E equal almost the entire asking price, which is great because these hard assets can both help you gain more favorable debt terms and provide a great safety net going forward. I’d want to look into revenue breakdown across different types of products, what industries their clients represent, if there are any client concentration issues, and how much repeat business they get (I bet a lot, given their 35 years in business). Given they do not currently advertise, there may be an opportunity for a new owner to spur growth through targeted outbound marketing.

3/ Parking Lot Striping Business

📍 Location: San Francisco, California
💰 Asking Price: $2,300,000
💼 EBITDA: $771,050
📊 Revenue: $4,000,000
📅 Established: 2004

💭 My 2 Cents: You can’t drive without roadway or parking lot striping, so this striping business is an absolutely essential business that is also recession-proof. They offer a wide range of striping and related services for projects running from small parking lots to large mall lots. Plus, these places constantly need re-striping due to wear, weather, and legal requirements for safety and accessibility (which means a lot of repeat revenue!). I like their history of stable revenues, strong margins, excellent reputation, and large list of repeat customers. I also like how they are poised for growth by either expanding their offerings or extending their geographic reach. I’d want to dig into their client base and if there are any concentration issues, how they acquire new clients, who their main competitors are, and the condition and projected useful life of the $750K in FF&E and inventory. I’d also want to see if there are opportunities for automation (some newer striping machines offer GPS-guided or automated features, which can reduce labor costs and increase efficiency, letting you take on more jobs in less time). Ultimately, this essential boring cash producer is a good business being offered at a very reasonable multiple.

4/ Commercial and Industrial HVAC Business

📍 Location: Texas
💰 Asking Price: $12,000,000
💼 EBITDA: $2,617,796
📊 Revenue: $25,000,000
📅 Established: 2001

💭 My 2 Cents: If you’re looking for a bigger HVAC business, I've got you covered. This HVAC and mechanical contractor currently has a work backlog of over $33.5M for clients across various industries. Some 90% of their revenue comes from HVAC construction, with the remainder split between HVAC repair services and plumbing. They have a full suite of managerial-level staff and the owner acts only in an oversight capacity, so there should be no issue with continuity for a new owner. While their current high cash flow is already very impressive, they’re on track for continued growth given their large project backlog (and there’s an opportunity to leverage their established presence to expand geographically). I’d want to get a handle on their client base and if there is much repeat business, how new projects are sourced and who's in charge of bidding, who their key competitors are, the nature and condition of their FF&E, and the roles and responsibilities of their 90 employees. While there is a solid management team in place, given the size and scope of this business, I like that the owner is willing to stay on for up to 12 months in any capacity to ensure a smooth transition. Ultimately, the great numbers of this business make it a must-look for someone thinking of jumping into or expanding in the industry.

5/ Septic Services Company

📍 Location: New Mexico And Colorado (Remote)
💰 Asking Price: $2,200,000
💼 EBITDA: $660,000
📊 Revenue: $1,100,000
📅 Established: 1960

💭 My 2 Cents: They’re not very glamorous, but septic tank businesses perform essential services that are always in demand. Plus, septic companies often have a recurring client base, as homeowners and commercial properties need routine maintenance (not to mention emergency services and repairs). This provides a predictable revenue stream. Founded in 1960 and led by the current owner since 2007, this company specializes in residential and commercial septic tank plumbing, inspections, and installations. I like their stable growth over recent years, superior reputation, and loyal client base. I also especially like their very strong margins (due partly to their home-based operation and low overhead) and their potential for further growth by pursuing more commercial contracts and expanding into additional areas. Another positive is that one of the employees staying with the business has all the necessary licensing, so this won’t be an immediate issue for a new owner. I’d want to check their revenue split between residential and commercial work, how they acquire new clients and distinguish themselves from the competition, the nature and condition of their $450K in FF&E, and what the owner’s role is (given he works remotely). While this deal should appeal to someone looking to get into the industry, it should really draw the attention of an existing business looking to expand in the space.