New Deals: An outdoor sport court contractor, medical billing business, and 3 other finds

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NEW DEALS

1/ Outdoor Sport Court Contractor

📍 Location: Georgia
💰 Asking Price: $3,500,000
💼 EBITDA: $1,000,000
📊 Revenue: $4,036,790
📅 Established: 1976

💭 My 2 Cents: A premier contractor specializing in the construction and resurfacing of outdoor pickleball, tennis, and basketball courts, in just the past four years they have installed over 250 new courts and resurfaced more than 700. I like their four dedicated crews with a combined 44 years of experience, adroit use of subcontractors, and loyal customer base, with some 60% of their projects from repeat or referred clients. A new owner also won’t have to worry about future revenues, as the company has an eye-catching $2.1M of signed contracts in the pipeline. I’d want to know their earnings breakdown between new construction and resurfacing, who their clients typically are (private residences, clubs, municipalities), if they face any seasonality, what marketing they currently do, and if their crews are full-time employees. The owners are open to a structured transition, with one willing to stay up to three years, so the continuity of their relationships with both suppliers and clients should not be an issue. Ultimately, this company is beautifully positioned to continue to benefit from the strong growth in pickleball and tennis.

2/ Medical Billing Business

📍 Location: Texas
💰 Asking Price: $3,500,000
💼 EBITDA: $1,002,629
📊 Revenue: $2,162,000
📅 Established: 2000

💭 My 2 Cents: Our expanding senior population is driving steadily higher health care expenditures, which in turn is spurring increased demand for medical claims processing services. This highly profitable company, drawing on 25 years of experience in the industry, combines medical billing services with consulting on the administrative and operational aspects of medical practice management. I like their electronic medical records expertise, strategic partnerships with accountable care organizations, training programs, and automation capabilities that can reduce staffing needs. I also like their strong cash flow, high margins, and readiness of the owners to support an extended transition. You really see the type of value they bring in their average of just 12 days in accounts receivable, as compared to the industry average of 32. I’d need to understand their revenue split between their different services, how many clients they have and if there is any concentration risk, what their client lifetime value and churn rate look like, the size and different roles of their staff, how they keep up with the latest technology, and what would be involved in scaling the business nationally.

3/ Window Washing and Waterproofing Company

📍 Location: California
💰 Asking Price: $4,300,000
💼 EBITDA: $1,085,000
📊 Revenue: $2,780,000
📅 Established: 1979

💭 My 2 Cents: Think of all the windows that need to be cleaned in Los Angeles! This company has been at it for over 45 years and offers everything from high-rise window cleaning to equipment rentals. I really like how 70% of their revenue comes from long-term service contracts, their great margins, and the $700K in high-rise maintenance equipment included in the sale, providing both a nice asset base and a barrier to entry for prospective competitors. I’d want to get a handle on their client breakdown across the different services they offer, their contract renewal rate, the size of their workforce to include subcontractors, the condition of their equipment and if there are any pending capital expenditures, and how much more work they could undertake given their current equipment and staffing. With experienced supervisors in place, the owner is only minimally involved, so this could be an appealing turnkey operation.

4/ Tree Service Company

📍 Location: Florida
💰 Asking Price: $2,100,000
💼 EBITDA: $637,327
📊 Revenue: $1,937,225
📅 Established: 1994

💭 My 2 Cents: While I’m always interested in tree service companies, I especially like ones in climates with year-round demand for their services. This business in Palm Beach County fits the bill with revenue from recurring maintenance contracts with residential, commercial, municipal, and HOA clients. They come with a substantial fleet of trucks, trailers, and specialized equipment and are housed in a well-organized staging yard that supports efficient daily operations. I also like their experienced team of 12 and their excellent reputation honed over their 30 years in business. I’d need more detail on the condition of their equipment to include whether any is pending replacement. I’d also want to look into how much of their work comes from long-term contracts versus one-time jobs, how often their contracts typically are up for renewal, how they bring in new business, and if there are any seasonal demand spikes from hurricane clean ups. Interested buyers should also check their safety record—tree work is dangerous and insurance costs can spike with poor safety history.

5/ Environmental and Animal Damage Remediation Business

📍 Location: New York
💰 Asking Price: $999,000
💼 EBITDA: $623,402
📊 Revenue: $1,086,165
📅 Established: 14 years

💭 My 2 Cents: This niche environmental remediation company provides both hazardous material cleanup and wildlife-related property restoration for the greater NYC suburban market. I really like how they are a low-overhead, home-based operation with streamlined processes for site inspections, insurance claim coordination, and subcontractor management, as this translates into minimal fixed costs and extremely high (57%) EBITDA margins. However, I’d need to dig into how many employees they have and what they do, if they primarily use subcontractors for their projects, who their main clients are, how they source new jobs and if they work much with insurance providers, and who the key license holders in the business are. I’d also want to dig into any seasonality, as wildlife intrusions are worse in winter, and mold and water damage spike in summer/fall. Assuming there is a solid transition plan in place, this seems an unusual chance to acquire an in-demand and recession-resistant business at a great multiple.