New Deals: A window and door installation contractor, machine shop, and 3 other finds

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NEW DEALS

1/ Window and Door Installation Contractor

📍 Location: Virginia
💰 Asking Price: $1,300,000
💼 EBITDA: $593,000
📊 Revenue: $7,500,000
📅 Established: 2010

💭 My 2 Cents: This is a unique opportunity to acquire a specialty contractor that has a longstanding relationship with a national retailer that gives them exclusive installation rights for more than 90 locations in their North Carolina area. I like their light operational footprint as they don’t need to carry any inventory and largely use subcontractors, and I like how their retail partnership provides a stable volume of work without the need for a traditional sales pipeline. It's rare to find a contractor with this level of embedded contractual demand and minimal in-house operational burden. The big risk here might be in concentration. So, I’d want to focus my early diligence on understanding exactly the terms and conditions of the exclusive relationship, including what that contract looks like, how it renews, and if there is any risk of losing the business to a competitor. I’d also want to see if they have much business sourced outside the retailer, how they manage their subcontractors, and if their exclusive territory could be expanded to more locations. They have a very scalable business model, so assuming their client relationship lets them continue to expand, this should be a steady earner with real upside potential.

2/ Roofing Company

📍 Location: California
💰 Asking Price: $2,435,000
💼 EBITDA: $1,219,853
📊 Revenue: $4,949,673
📅 Established: 1926

💭 My 2 Cents: Regular readers know I’m drawn to businesses like this that have been in operation a long time (in this case a century!), as this points to incredible local brand equity and proven staying power across a range of economic conditions. This company, known for traditional hot tar and torch-down PVC roofing methods that result in longer-lasting installations, handles both residential and commercial clients while bringing in additional revenue by offering cedar shingle siding. In an industry that is often commoditized, they stand out through their old-school methods, value-added customer service, and embedded community reputation. They come with a unionized staff that sports an average tenure of 20 years, an owner that is open to remaining involved for up to 12 months, and a considerable amount of inventory and equipment that includes 18 trucks. I’d need more detail on how their union relationship is structured and if any negotiations are pending, the status (owned, leased) and condition of their vehicles, and the nature and value of the other FF&E included in the sale. I’d also want to get a handle on their current backlog and pipeline, seasonality and how dependent cash flow is on weather patterns or fire/flood restoration spikes, how they source new work, and what % of bids convert to signed contracts.

3/ Machine Shop

📍 Location: California
💰 Asking Price: $7,875,000
💼 EBITDA: $1,480,905
📊 Revenue: $5,881,320
📅 Established: 1997

💭 My 2 Cents: This precision CNC machine shop serves customers in the semiconductor, medical device, and scientific instrument industries. Operating from a 28,725 sq ft facility, they have the technical expertise to process a wide range of materials including aluminum, titanium, and plastics. They are well positioned for growth, as they have the capacity to handle the rising demand in particular for semiconductor OEMs and medical devices. I like their location in Silicon Valley, which puts them in close proximity to major clients (especially for prototyping or fast-turnaround jobs where overseas vendors can't compete), almost 30 years of operational experience, and strong earnings and margins. Plus, once a shop is validated for tight-tolerance parts in regulated industries, switching costs are high. I’d need to check if there is any client concentration, if there are long-term supply agreements or just PO-based work, breakdown of prototype vs. production vs. rework jobs, if they face any recurring supply chain issues, the current utilization rate of their machines and if capacity can grow with existing assets, the value and condition of any FF&E included in the sale, and how many machinists and programmers are on staff (and whether there is any key man risk here). This business should benefit from the tailwinds from on-shoring advanced manufacturing, and as a bonus, the seller is offering $900K in financing.

4/ Commercial HVAC Contractor

📍 Location: New Jersey
💰 Asking Price: $2,000,000
💼 EBITDA: $719,297
📊 Revenue: $8,265,009
📅 Established: 2015

💭 My 2 Cents: HVAC isn’t a “nice to have.” Regular maintenance and emergency repairs are mandatory to meet building codes, health/safety standards, and tenant comfort—especially in hot or cold climates. This HVAC contractor, focusing on new commercial installations, has grown steadily over their 10-year history to more than $8 million in annual revenue. Two distinctive features are how they perform their own sheet metal fabrication and design their own HVAC control systems, reducing their dependence on third parties while enabling them to price competitively and maintain greater control over quality. Scale can also be a plus and their strong revenue base should both provide increased stability during a transition to new ownership and help open the door for potential expansion into additional market segments. I’d want to know what portion of their business is from repeat clients or long-term GC relationships, how they otherwise bring in new jobs, the size of their current work in progress and contracted backlog, what recurring revenue they have through maintenance contracts, and how they assign and manage their four dedicated work crews. HVAC is pretty much always an interesting opportunity, but I’d need to be sure there are no issues in the breakup of the partnership that is behind this sale.

5/ Glass and Glazing Company

📍 Location: Georgia
💰 Asking Price: $1,800,000
💼 EBITDA: $798,912
📊 Revenue: $5,399,315
📅 Established: 1995

💭 My 2 Cents: This 30-year-old commercial glass and glazing company has built a strong reputation specializing in the installation and maintenance of storefronts, commercial glass, and door hardware for both general contractors and property owners. They operate from a 10,000 sq ft facility (for sale separately for $1.75M) that contains office, warehouse, and shop space, have a lean team of 8 employees, and come with over $333K in equipment. The low asking multiple relative to EBITDA means that someone could easily afford to purchase the real estate as part of this transaction and have current cash flow cover the added interest, potentially unlocking a lot of added value in the deal. I’d need to dig into what percentage of their revenue comes from installation versus repair and maintenance work, how much work is from general contractors vs. direct-to-owner, how often they bid on new projects and their success rate, who handles estimating and sales, if they face any supply chain issues, and what would be required to expand into adjacent services or new territories. Their location in the booming Atlanta area means they should have the ongoing demand to continue to be an excellent cash producer, and serving both general contractors and property owners should help smooth out cyclical downturns in either market.