📢 Deal Alert - A Water Treatment Essential Service & 4 more

Welcome to this week’s edition of Acquisition Alert!

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-Harry & Carter

Table of Contents

• Water Treatment Service

• Beach Equipment Rental Business

• Residential & Commercial Fencing Company

• Towing Company

• Security Transportation Service

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1. Water Treatment Service

• Location: Phoenix, AZ

• Asking Price: $2,500,000

• EBITDA: $783,793

• Multiple: 3.2x

• Revenue: $2,942,097

• EBITDA Margin: 27% 

• Employees: 6-9

• List Date: 6/18/24 

• Reason for selling: Retirement 

💬 Harry & Carter’s thoughts:

This water treatment company has been operating for over 20 years, offering essential services like water softeners, filtration systems, and UV sterilization. Serving both residential and commercial clients, it's a trusted name with a solid reputation. Growth opportunities include expanding service areas, introducing new products, and enhancing digital marketing. The company has an experienced team, and the seller will provide training for a smooth transition. This seems like a turnkey opportunity for the right buyer.

• Essential service

• 20+ years in business

• Healthy margins

• Commercial and residential clients

❓️Who are the local competitors?
❓️Are there any licenses required for the new owner?
❓️What is the average project size?

Inquire:

Link to listing here

Broker: GlobalBX

Contact: N/A

2. Beach Equipment Rental Business

• Location: Lee, FL

• Asking Price: $3,650,000

• EBITDA: $1,069,128

• Multiple: 3.4x

• Revenue: $1,560,000

• EBITDA Margin: 69% 

• Employees: 7

• List Date: 6/18/24 

• Reason for selling: Retirement

💬 Harry & Carter’s thoughts:

This beach equipment rental business, established for two decades, provides jet skis, beach chairs, and umbrellas in a prime location on a national resort property in Florida. What's unique is that it has four licenses that are no longer issued by the town, giving it a strong moat and eliminating new competition. To keep these licenses active, the buyer will need to buy the corporate stocks instead of just the assets, making this a stock purchase instead of the traditional asset purchase.

• Very high EBITDA margins

• Seller financing available

• $550K FF&E included in asking price

• Lifestyle business

❓️What is the revenue breakdown by service?
❓️Why is the EBITDA margin so high?
❓️What are insurance costs?

Inquire:

Link to listing here

Broker: Truforte Business Group

Contact: N/A

3. Residential & Commercial Fencing Company

• Location: Jacksonville, FL

• Asking Price: $308,900

• EBITDA: $247,115

• Multiple: 1.25x

• Revenue: $1,554,615

• EBITDA Margin: 16%

• Employees: 2

• List Date: 6/17/24 

• Reason for selling: Retirement 

💬 Harry & Carter’s thoughts: 

Fencing companies have become increasingly sought-after for acquisition due to their ability to scale quickly without significant capital expenditure. However, they can face challenges with supplier dependencies and fluctuating commodity prices. Some companies opt for vertical integration by acquiring metal fabrication firms to mitigate these risks. Despite its smaller size, this company presents an appealing opportunity with a low 1.25x multiple. As revenue increases and costs per unit decrease, profit margins are expected to expand. It benefits from strong vendor relationships and operates without inventory.

• Residential and commercial clients

• Low multiple

• Extensive positive reviews and loyal client base

• Financing options available

❓️Why is the multiple so low?
❓️What is the revenue breakdown: residential vs. commercial?
❓️Is this business fully reliant on the owner?

Inquire:

Link to listing here

Broker: BusinessesForSale.com

Contact: NA

4. Towing Company

• Location: North Carolina

• Asking Price: $6,800,000

• EBITDA: $1,500,000

• Multiple: 4.5x

• Revenue: $3,960,000

• EBITDA Margin: 37.9%

• Employees: 13

• List Date: 6/15/24

• Reason for selling: Retirement

💬 Harry & Carter’s thoughts: 

With a nearly three-decade legacy, this towing company has been serving customers across most of North Carolina. Their services include gas, tire, and fuel replacement; lock-out service; jumpstart assistance for all vehicle types, including motorcycles; and towing and roadside assistance for commercial and RV vehicles. What sets them apart is their commitment to ethical practices—they prioritize breakdown and abandonment removal services over predatory towing. Additionally, they serve all Department of Transportation vehicles and hold contracts with several city, state, and county fire, police, and sheriff departments.

• Recurring, contract-driven revenue

• $6.3M truck fleet included in purchase price

• Healthy 38% EBITDA margin

• SBA pre-qualified

• Consistent service records on fleet

❓️What role does the owner’s son currently have?
❓️How many customers does the business have?
❓️What is the revenue breakdown per service (gas, tire, lock-out service)?

Inquire:

Link to listing here

Broker: Shanon Madrid (Sunbelt of Durham)

Contact: 919-858-6853

5. Security Transportation Service

• Location: New Jersey

• Asking Price: $4,290,000

• EBITDA: $1,270,000

• Multiple: 3.4x

• Revenue: $3,700,000

• EBITDA Margin: 34% 

• Employees: 20+

• List Date: 6/18/24

• Reason for selling: Retirement 

💬 Harry & Carter’s thoughts: 

This security transportation service, established in 1994, holds over 350 contracts and generates steady recurring revenue. The company employs more than 20 staff members and includes $200k in Net Working Capital and $600k in Fixed Assets. It yields high EBITDA margins (34%) and is pre-qualified by an SBA lender, with $900k in seller financing and $2.6m in bank financing available. The retiring owner will provide consulting to help with the transition. We would be very interested in exploring this deal further as it seems like an ideal search target.

• 350+ contracts in place

• Seller financing available

• SBA pre-approved

• Operating for 30 years

• $200k of working capital included

❓️Will the contracts transfer to the new owner?
❓️What condition are the trucks in?
❓️What are the licensing requirements?

Inquire:

Link to listing here

Broker: Neumann Associates

Contact: N/A

Thanks for reading and don’t hesitate to reach out! - Harry & Carter

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