New Deals: An IT managed service provider, facility maintenance company, and 3 other finds

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NEW DEALS

These deals span the country. For custom-sourced deals in your area, click here.

1/ IT Managed Service Provider

📍 Location: Missouri
💰 Asking Price: $2,000,000
💼 EBITDA: $559,237
📊 Revenue: $1,322,036
📅 Established: 2004

💭 My 2 Cents: SMBs and mid-market companies can’t afford full IT departments, so they outsource to MSPs. I’m a big fan of them as they enjoy recurring, contractual revenue and benefit from significant tailwinds with increasing digitization, hybrid/remote work, and rising cybersecurity threats. Plus, they tend to have extremely sticky customers since switching costs are high due to migration headaches. This MSP has a diversified customer base of 53 managed services clients and 73 hosted solutions clients, with recurring revenue making up 82% of sales. I’d need more detail on their contract terms (auto-renewal, termination clauses, pricing escalators) and historical client churn. I’d also want to understand whether their hosted solutions are delivered through their own data center or by reselling third-party cloud services. If they self-host, there could be obsolescence and margin pressure risk as more businesses migrate to public cloud providers. As the market continues to grow ~8–10% CAGR in the U.S., what’s particularly exciting is how fragmented the industry is, with PE firms actively rolling up MSPs into larger platforms and creating an opportunity for a buyer of this business to participate in that consolidation.

2/ Plumbing Business

📍 Location: Rhode Island
💰 Asking Price: $1,800,000
💼 EBITDA: $505,000
📊 Revenue: $1,241,000
📅 Established: 2013

💭 My 2 Cents: Plumbing companies are a favorite of mine because even in downturns people must fix leaks, clogs, code compliance issues, and water heater failures. This plumbing company serves residential and light commercial clients across the larger Rhode Island area. I like their fully staffed team of field technicians and office personnel, fleet of four vehicles each stocked with $15K+ in tools and parts included in the sale, and A+ Better Business Bureau accreditation. There can be a lot of range in plumbing services, so I’d need to better understand if they focus more on new construction/renovation, emergency repairs, or maintenance. I’d also want to understand if they have a proven lead generation engine in place (Google Local Service Ads, organic SEO, reviews), if they offer memberships that drive repeat revenue, if they have at least one non-owner master-license holder (the owner is willing to provide up to 6 months of transition support), and the possibility of expanding to more commercial work or specialized services (filtration, pump services). There’s usually room to professionalize mom-and-pop businesses of this size through optimizing pricing and dispatch, and in this case there’s an opportunity to roll up adjacent territories (SE MA / CT border towns).

3/ Facility Maintenance Company

📍 Location: Missouri
💰 Asking Price: $4,700,000
💼 EBITDA: $1,034,710
📊 Revenue: $4,538,972
📅 Established: N/A

💭 My 2 Cents: Facility maintenance is non-discretionary, and I especially like that these businesses come with multi-year contracts and recurring monthly revenue. This Kansas City metro-based company serves a commercial client base across the Midwest that includes office buildings, industrial sites, healthcare facilities, and public institutions. I especially like the healthcare and public contracts, as these tend to be sticky and recession-resistant. They have minimal client concentration and have combined facility maintenance with janitorial services, which explains their strong margins and allows them to capture as much revenue as possible from each customer. I’d want to understand the standard terms of their contracts and renewal rates (a good sign would be 3+ year agreements), their employee recruiting funnel, and their employee turnover (ideally under 40%). Importantly, I’d also want to get a handle on their working capital requirements, as payroll is typically weekly/bi-weekly while clients may pay on 30–60 day terms. The real upside is the scalability of this business model once systems for recruiting, training, and scheduling are in place.

4/ Gas Station

📍 Location: Arizona
💰 Asking Price: $1,890,000
💼 EBITDA: $648,600
📊 Revenue: $7,373,769
📅 Established: 1995

💭 My 2 Cents: Fuel is a non-discretionary purchase, especially in car-centric markets like Phoenix where this gas station is based. This recently renovated corner-lot location sits at one of Phoenix’s busiest intersections, with fuel supply secured under a newly signed 10-year deal with Sinclair. What’s important to know with gas stations is that the real money is made in convenience store sales (lottery, food, beverage) since margins on fuel are very tight. That said, I’d want to understand the sales mix of fuel vs. inside sales, the average basket size, and whether inside sales account for at least 30–40% of gross profit. I’d also want to dig into the traffic counts and competition (ideally 40k+ vehicles/day with limited direct competitors on the same intersection). Make sure to review the environmental reports (recent Phase I/II, tank testing, monitoring records, compliance inspections), since regulatory agencies often hold the operator responsible for day-to-day compliance regardless of who owns the underlying real estate. While growth potential may be limited, this business offers the opportunity for stable, consistent cash flow for many years.

5/ Freight & Logistics Company

📍 Location: Florida
💰 Asking Price: $2,500,000
💼 EBITDA: $1,271,344
📊 Revenue: $3,551,435
📅 Established: 2011

💭 My 2 Cents: This South Florida transportation and logistics company jumped out at me for their unusually high margins. Upon digging in, I found that they’re a bonded carrier, which means they are authorized by U.S. Customs to transport goods that haven’t yet cleared customs. Bonded work can command higher rates because of the specialized authority, compliance, and fewer carriers competing for it (a valuable credential in a global trade hub like South Florida). On top of that, this company serves a diversified end market including general freight, refrigerated food, and dry freight, and they have an integrated freight brokerage and dispatching division with longstanding relationships with customs brokers, freight forwarders, and shippers. I’d want to understand their revenue and margin from carrier vs. brokerage vs. dispatch, as well as refrigerated vs. dry vs. general freight (with refrigerated freight volume being less sensitive to macro conditions). I’d also want to dig into the age, mileage, and condition of their fleet of 10 trucks, how much additional business they could handle with their current personnel and equipment, and their driver churn rate (since recruiting and retaining CDL drivers is difficult). This business looks like a very attractive buy, especially given that they are being offered at a very reasonable multiple relative to cash flow.