New Deals: A painting company, commercial pest control business, 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/ Painting Company

📍 Location: Arizona
💰 Asking Price: $1,200,000
💼 EBITDA: $606,226
📊 Revenue: $3,395,676
📅 Established: 1977

💭 My 2 Cents: I really like businesses with this level of staying power that have remained in a single family for so long. This nearly 50-year-old, 3rd-generation painting company focuses on larger jobs, including subdivisions of new homes and high-end remodeling projects. Subdivision work often comes from builder contracts or repeat engagements, which are hard to build from scratch and can generate predictable revenue. They have a large 25-person full-time staff and stay busy year-round with no advertising, pointing to an opportunity for a new owner to spur growth through a targeted marketing plan. I’d want to check what established relationships they have with GCs & developers, if there’s any concentration risk there, their current backlog and pipeline, how much more work they could handle with their current staffing, and the condition of the $200K in FF&E included in the sale. I’d also confirm their payment terms (net-30 or net-60?) because there could be high working capital needs if you‘re fronting labor and material costs. Even though this industry as a whole can be cyclical, local market dynamics are important, and the good news is, in the case of Arizona, there are strong tailwinds in the housing market.

2/ Custom Machine Shop

📍 Location: Texas
💰 Asking Price: $4,995,000
💼 EBITDA: $1,150,000
📊 Revenue: $3,300,000
📅 Established: 1976

💭 My 2 Cents: This multi-generational machine shop specializes in precision sheet metal fabrication, stamping, welding, and assembly services for aerospace, defense, commercial, and medical clients. They are AS9100D-certified, which is essential for aerospace and defense work and typically leads to higher margins and more defensible contracts. Operating from a 20,000 sq ft climate-controlled facility, they currently have a diverse mix of nearly 40 different long-term customers (with no concentration issues) and generate an impressive 34% EBITDA margin. In addition to this, they come with $750K of specialized equipment, providing an extra measure of defensibility along with their highly experienced and expert team. I’d need to get a handle on their working capital cycle (how long between labor/material spend and cash receipt, if they are pending any capex (precision machining requires ongoing investment in equipment and tooling), and how much growth they could support with their current facility, equipment, and staff. The sellers, who are open to staying involved throughout an extended transition, are committed to providing personal introductions to every one of their active clients.

3/ In-Home Care Agency

📍 Location: Ohio
💰 Asking Price: $10,500,000
💼 EBITDA: $2,500,000
📊 Revenue: $11,000,000
📅 Established: 2013

💭 My 2 Cents: What's attractive about home care is that demand is driven by aging demographics and chronic care needs and isn't cyclical like other industries. This large, franchised personal home care agency is a preferred provider under Ohio's MyCare and federal Veterans Affairs programs, which means pre-vetted access to state and federal referrals, often with higher patient volumes and lower marketing spend required. I really like how they continue to experience significant growth, driven in no small part by increasing reimbursement rates and an aging population moving into their highest revenue category of senior citizens. I also like their scale, as they currently employ 365 people, including 15 office staff working out of a 3,000 sq ft facility. I’d need more detail on their franchise arrangement, to include the support provided, ongoing royalties, required fees, and termination clauses. I’d also want to dig into their revenue by payment type (e.g. Medicaid, VA, private pay) and if there’s risk of overexposure to a single payor, what caregiver turnover looks like, if they’re facing any margin compression due to wage pressures, and what the lag time between care delivery and reimbursement looks like. The fact that this is a franchise could be a real advantage, especially for a new owner without an extensive background in the industry, as they come with both established operating strategies and procedures, and the name recognition of a larger brand.

4/ SaaS Video Automation Service

📍 Location: Florida
💰 Asking Price: $2,750,000
💼 EBITDA: $696,308
📊 Revenue: $865,405
📅 Established: 2017

💭 My 2 Cents: This B2B SaaS video automation platform serves eCommerce/DTC brands and enterprise organizations, using a proprietary tech stack to convert static product listings into dynamic videos that boost engagement and conversions. Their distinctive capabilities include an easy-to-use client platform and a white-label video personalization API with applications in the insurance, financial services, automotive, and retail sectors. I really like their revenue model, as they have a large amount of recurring income from subscription services, while also offering pay-per-video options (costing up to $450 per video). While their numbers (and extremely high margins) are very impressive, this space is certainly heating up, so it’ll be essential to understand if any of the tech is truly proprietary, key points of differentiation, and if they have case studies or verified conversion lift data. I’d also want to scope out their customer acquisition cost, average client lifetime value, whether there are strong cohort retention curves, if there is any enterprise client concentration, and if growth is driven by inbound, outbound, or partner channels. Ultimately, eCommerce brands are increasingly leaning on short-form, personalized video content, and platforms that automate this are well-positioned for growth.

5/ Commercial Pest Control Business

📍 Location: Virginia
💰 Asking Price: $5,000,000
💼 EBITDA: $1,100,000
📊 Revenue: $1,500,000
📅 Established: N/A

💭 My 2 Cents: The majority of pest control businesses are residential, so I was excited to come across this commercial pest control business with 86% of their revenue contracted and recurring. I love this exposure to B2B clients and multi-unit residential buildings, as they will typically have “set it and forget it” style contracts, highlighted by their 95% customer retention rate. That said, I’d need to find out how their prices and offerings compare with local competitors, the standard terms for their recurring service contracts, what special equipment is included in the sale, and what seasonality looks like (even with recurring contracts, spring/summer can be peak months for service and revenue). I’d also want to understand how many active field techs there are and what turnover looks like, who holds the required pesticide applicator licenses (though it should only takes 4-8 weeks to get), and if there’s any opportunity for route optimization. On top of being a needs-based business where demand persists in all economic cycles, there should be room for growth in their thriving Northern Virginia area.