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  • New Deals: A semi-absentee towing business, fire system services company, and 3 other finds

New Deals: A semi-absentee towing business, fire system services company, and 3 other finds

Plus, the off-market pet food company Chelsea closed on

Today's Sponsor

Hello SMB Deal Hunters!

Iโ€™m excited to share 5 new businesses for sale worth checking out in this Market Watch issue. Each was handpicked from hundreds of fresh listings, with our quick take on why it stands out. First upโ€ฆ

Todayโ€™s issue is sponsored by SMB Deal Hunter Pro, our accelerator that helps business buyers find, finance, and acquire a million-dollar cash-flowing business in 6โ€“12 months.

COMMUNITY WINS

Hereโ€™s what one SMB Deal Hunter Pro member shared this past week:

๐Ÿ‘€ This is what's possible when you have the right team behind you.

Our team sourced this deal off market for Chelsea. Our advisors worked with her 1:1 to spot red flags, structure the terms and financing, and negotiate.

NEW DEALS

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

1/ Towing Business

๐Ÿ“ Location: North Carolina
๐Ÿ’ฐ Asking Price: $2,500,000
๐Ÿ’ผ EBITDA: $609,977
๐Ÿ“Š Revenue: $1,766,905
๐Ÿ“… Established: 2013

๐Ÿ’ญ My 2 Cents: Towing is one of those businesses that benefits from something most industries dread: people having bad days. Cars break down, accidents happen, and illegal parking doesn't stop, which makes demand remarkably consistent regardless of the economy. This operation has built a diversified revenue base across commercial accounts, municipal contracts, and direct consumer calls, generating $610K in owner earnings on an impressive 34.5% margin. I like their semi-absentee model, with an experienced manager already running daily operations, which tells me the systems are in place for a buyer who wants cash flow without a 60-hour work week. The combination of contract work and spot calls also creates both stability and upside. I'd want to understand the fleet age and upcoming capital expenditure needs, how the municipal contracts are structured and when they renew, and what the competitive landscape looks like for tow rotation lists in the county. Given their location in one of the fastest-growing metros in the country, the call volume here should only go up.

2/ Fire System Services Company

๐Ÿ“ Location: Michigan
๐Ÿ’ฐ Asking Price: N/A
๐Ÿ’ผ EBITDA: $1,001,872
๐Ÿ“Š Revenue: $2,437,805
๐Ÿ“… Established: 1990

๐Ÿ’ญ My 2 Cents: Fire sprinkler inspection and maintenance is about as close to guaranteed recurring revenue as you can get in the trades, because building codes require regular testing and compliance documentation. Customers don't decide whether to call; they have to. This Michigan-based company has been at it for 36 years, serving commercial and industrial customers with installation, inspection, testing, and maintenance of fire suppression systems. The $1M EBITDA on $2.4M in revenue (a 41% margin) tells me they are running tight operations with minimal waste. I like their recurring service contract base, which provides a reliable revenue floor, while project-based installation work adds upside. The owner is looking to retire within 1 to 3 years and is willing to stay on during the transition, which reduces execution risk for a new buyer. That said, I'd want to dig into the contract renewal rates and average contract values, understand their revenue mix across maintenance vs inspections vs installations, and assess the technician bench beyond the owner. Thereโ€™s no asking price on this one, but compliance-driven service businesses in fire protection routinely command premium multiples because demand is literally written into law.

3/ UX/UI and Software Engineering Agency

๐Ÿ“ Location: Florida
๐Ÿ’ฐ Asking Price: $2,535,000
๐Ÿ’ผ EBITDA: $844,326
๐Ÿ“Š Revenue: $1,734,994
๐Ÿ“… Established: 2014

๐Ÿ’ญ My 2 Cents: With enterprise demand for AI integration accelerating across healthcare and SaaS, an agency that already has the engineering talent to deliver those projects is sitting in exactly the right spot at exactly the right time. This Tampa-based firm has spent 12 years building a team of 19 senior-level professionals delivering UX/UI design, custom software, and AI solutions across healthcare, AdTech, and enterprise SaaS. The embedded engineering model, where clients pay $5K to $12K per engineer per month, has created a predictable cash flow engine. In fact, 85% of their revenue mix is recurring and 65% of clients renew for multiple terms, something you don't see often in the agency world. The 49% net margin and zero marketing spend tell me the reputation carries the business, which means real upside exists for a buyer who introduces outbound sales. I'd want to understand who owns the client relationships (the firm or the individual engineers?), how contracts are structured around minimum terms and termination, and how the team stays current with fast-moving AI frameworks and tooling given how quickly the space evolves. Ultimately, a buyer with a strong sales background could push growth considerably without touching the delivery model.

MEMBER SPOTLIGHT

Cory spent 13 years managing restaurants. Started a clothing line that COVID killed. Was piecing together income with a real estate license on the side.

He knew he wanted out. Made that decision two years before he finally pulled the trigger.

10 months after joining SMB Deal Hunter Pro, he closed on a $1.85M early education childcare center in York, PA.

But the best part?

8 months later, he only spends 1-2 hours a week on it. And he used the cash flow to buy his dream passion project (a 10-acre wedding venue).

4/ Commercial Electrical Company

๐Ÿ“ Location: Pennsylvania
๐Ÿ’ฐ Asking Price: $1,500,000
๐Ÿ’ผ EBITDA: $553,284
๐Ÿ“Š Revenue: $1,385,434
๐Ÿ“… Established: 1967

๐Ÿ’ญ My 2 Cents: Nearly six decades in business and still counting their very first client as active tells you everything about the staying power here. This B2B commercial electrical company serves 345 active customers across municipalities, handling everything from high-voltage transformer installs to emergency industrial troubleshooting. Their 40% net margin on $1.4M in revenue is exceptional for a trades business, and that's the product of a lean crew of 3 Licensed Master Electricians plus an office manager who run the show with 3 fully equipped service trucks and equipment (worth $400K), and zero subcontractors or union exposure. I like that revenue splits 60/40 between recurring service work and new construction, providing both stability and growth upside. What's really impressive though is they've never spent a dollar on advertising, yet grew revenue 45% year-over-year purely on referrals and reputation. I'd want to understand how dependent operations are on the current owner (who still works 40 hours a week), the pipeline for recruiting licensed electricians, and what formal service contracts look like versus ad-hoc call-in work. The reality here is even a basic marketing function and structured maintenance agreements could meaningfully move the needle.

5/ Environmental Engineering Firm (Wastewater)

๐Ÿ“ Location: Massachusetts (Remote)
๐Ÿ’ฐ Asking Price: $1,675,000
๐Ÿ’ผ EBITDA: $647,096
๐Ÿ“Š Revenue: $2,221,300
๐Ÿ“… Established: 1996

๐Ÿ’ญ My 2 Cents: Aging water infrastructure across the U.S. is a multi-decade tailwind, and this firm has spent 30 years positioning itself right in the middle of it. They handle the full lifecycle of wastewater projects for municipal, commercial, and industrial clients, from feasibility studies to designing, building, and operating treatment facilities. I like that their geographic reach spans five states, and that their remote model keeps overhead low enough to support a 29% net margin. The team punches above its weight with a Chemical Engineer, Construction Engineer, CAD Drafter, and GIS Specialist on staff. They also have $1M+ of work-in-progress, signaling healthy demand. That said, I'd want to understand how project wins are sourced (government RFPs versus referrals), the pipeline beyond current WIP, and how dependent the firm's licenses are on the current owner. At 2.59x the price feels right, and the owner's willingness to stay 1 to 4 years post-close provides meaningful transition support. With federal infrastructure spending ramping up and municipalities under pressure to upgrade aging plants, demand may be entering its strongest decade yet.

COMMUNITY PERKS

โ€ข Ready to buy and operate a $1M+ business? Partner with my team and get expert support at every step.

โ€ข Want to invest passively in SMB acquisitions? Get access to investment opportunities.

โ€ข Get a personal introduction to my preferred SBA 7(a) lender, non-SBA lenders, Quality of Earnings providers, or legal counsel

โ€ข Raising capital for your deal? Iโ€™ll connect you with investors from the SMB Deal Hunter Community.

โ€ข Interested in selling your business? Iโ€™ll help you connect with buyers from the SMB Deal Hunter Community.

RECENT PODCAST EPISODE

Mubarak has completed over 200 Quality of Earnings.

He's seen every trick in the book.

And in this episode, he walks through exactly what sellers do to make their businesses look more profitable than they are.

Here are some of the highlights from the deep dive:

๐Ÿ”ฅ The seller accounting trick that sails right past SBA underwriting and can cost you millions (it's shockingly simple)

๐Ÿ”ฅ Why your bank's underwriting isn't designed to protect you, and what it's actually designed to do instead

๐Ÿ”ฅ The one M&A concept that nobody actually understands that led to a seven-figure lawsuit

๐Ÿ”ฅ A breakdown of exactly what happens during a QofE, what it costs, how long it takes, and why the biggest bottleneck has nothing to do with the accountant

Here's his must-watch breakdown...

And for our audio-only listeners, jump in and listen on Spotify or Apple Podcasts!

THATโ€™S A WRAP

See you tomorrow!

P.S. I'd love your feedback. Tap the poll below or reply to this email.

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Disclaimer

This publication is a newsletter only and the information provided herein is the opinion of our editors and writers only. Any transaction or opportunity of any kind is provided for information only; SMB Deal Hunter does not verify nor confirm information. SMB Deal Hunter is not making any offer to readers to participate in any transaction or opportunity described herein.