New Deals: An auto repair center, evaporative cooler supplier, and 3 other finds

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NEW DEALS

1/ Auto Repair Center

📍 Location: California
💰 Asking Price: $8,400,000
💼 EBITDA: $1,965,006
📊 Revenue: $7,742,162
📅 Established: 2019

💭 My 2 Cents: California has the highest number of registered vehicles in the U.S., and with congested roads, the need for collision repair is constant regardless of the economy. This collision repair center, established in 2019, has quickly scaled into a multi-million-dollar business, boasting a very impressive $1.97M in EBITDA. Their growth has been spurred by their establishing long-term relationships with insurers and dealerships, while their ability to continue to expand is seen in their recent signing of two major new contracts. If you are looking for a remote opportunity, they are run by an absentee owner supported by a strong management cohort and a robust team of technicians. I like their B2B focus, as this means they have a consistent stream of work without having to invest in advertising, and that their spray booths are grandfathered in (their Southern California county no longer issues new permits), providing a serious moat against potential competitors. I’d need more detail on their insurance/dealership contracts to include their standard terms and if there is any possible client concentration. I’d also need more info on the equipment included in the sale, their real estate and facilities (available separately), and how much additional work they could handle with their current assets.

2/ Evaporative Cooler Supplier

📍 Location: Arizona
💰 Asking Price: $1,895,000
💼 EBITDA: $706,482
📊 Revenue: $2,064,162
📅 Established: 1945

💭 My 2 Cents: As climate change drives up temperatures (especially in dry, arid regions like the Southwest U.S.), evaporative coolers are seeing a surge in popularity due to low energy use and eco-friendliness compared to traditional AC. This niche, 80-year-old company is the “go to” supplier in their Phoenix Valley market. What’s great about these businesses is they often come with repeat orders for pads, filters, and parts. With this business in particular, I really like their ability to bring in new clients—given their excellent reputation—without any investment in advertising, social media, or online ordering. This lack of a digital presence suggests there could be a lot of upside in digitizing their customer acquisition and sales efforts. On the supplier and inventory side, I’d need to check if they have exclusivity with any suppliers or are dependent on a specific manufacturer, lead times and MOQs, how much capital is tied up in inventory (or if they drop ship), and how much working capital is needed to fund inventory before peak summer season. On the sales side, I’d dig into if their sales are concentrated among a few accounts, what % of sales come from direct-to-consumer vs. wholesale, and what defensibility they have against national or larger competitors. Given both Phoenix’s hot climate and ongoing expansion, this business looks beautifully positioned to continue to thrive.

3/ Disaster Restoration Business

📍 Location: Florida
💰 Asking Price: $5,800,000
💼 EBITDA: $1,661,034
📊 Revenue: $3,689,032
📅 Established: 2010

💭 My 2 Cents: Florida is unsurprisingly consistently in need of disaster relief. This company, which prides themselves on their 60-minute response time, specializes in water damage restoration, mold remediation, and fire damage recovery. With their professional-grade equipment, EPA-approved cleaning solutions, and insurance billing capabilities, they have positioned themselves as a one-stop-shop for disaster mitigation. I really like their very high margins of over 45%, outperforming the industry average, and how their speed and capabilities have created a strong brand in an industry where urgency and trust are critical. To start, I’d need to understand how they source clients to include how much they rely on insurance companies versus direct outreach. I’d also want to get a handle on how much of their equipment is owned versus leased and if there are any pending capital expenditures, what certifications are needed and if they’re tied to employees or the owner, and how scalable their current structure is. A final plus is that the seller is open to offering financing to a qualified buyer.

4/ Cleaning Company

📍 Location: Florida
💰 Asking Price: $4,200,000
💼 EBITDA: $858,163
📊 Revenue: $4,292,306
📅 Established: 1983

💭 My 2 Cents: There is a lot of competition and few barriers to entry in the cleaning space, so I always like it when a company has proven themselves over an extended period of time. This 40-year-old business offers a diverse range of services, including general maid, window, carpet, upholstery, and site cleaning for residential, commercial, and construction clients. I like their scale, as they are a robust operation with 95 employees, their recurring revenue model, and the $800K of real estate and $285K of FF&E included in the purchase price, with these providing a good amount of hard asset value. I’d want to know the revenue split between their different types of clients, how their contracts and pricing are structured, their client renewal rate and average lifetime value, how they acquire new clients, how they handle scheduling and CRM, and the breakdown in their staff between full-time and contract employees. If interested, I wouldn’t dawdle, as their clean books (and strong cash flow!) are sure to draw heightened attention.

5/ Towing Business

📍 Location: California
💰 Asking Price: $3,395,000
💼 EBITDA: $700,000
📊 Revenue: $2,500,000
📅 Established: 1989

💭 My 2 Cents: I like the consistency and enduring need of the towing industry, as cars break down, crash, or get impounded regardless of the economy. I also like how these companies generally have a large hard asset base as well, so a new buyer is getting more than just goodwill and a customer list for their purchase. This particular business comes with a full fleet of tow trucks, a fully equipped on-site mechanic shop, and a favorable lease for the 4,000 sq ft facility. Add to this they have a longstanding commercial towing contract, strong cash flow, no debt, and clean books, and you have a business that looks pretty good. I’d assume there is significant value in their fleet and FF&E, so it’ll be important to get a full picture of what is included in the offering, including their condition and projected lifespan. I’d also want to dig into what percent of their revenue the long-term contract represents and when it is up for renewal, revenue split (police, insurance, private tows, impounds, repos), how stable call volume is, how they handle dispatch (manual or digital?), and if their facilities could support further expansion. Ultimately, this is an industry that’s not easy to break into, especially considering some municipalities limit the number of operators.