Inside an $11 M Elevator Services Deal: High Margin, Hard Growth
Acquisitions Anonymous - #1 for business buying, selling and operating
Industry Barriers and Pricing Power
Hosts discuss licensing, regulation, limited competition and why elevator services can be sticky and high margin.
In this episode the hosts walk through evaluating a potential acquisition of a Houston‑area elevator services company, debating whether a 7.5× EBITDA asking price can pencil out given the financing constraints and growth challenges.
Business Listing - https://www.bizbuysell.com/business-opportunity/strong-cash-flow-elevator-services-business-houston-texas/2439153/?J=bot&bn=114637964&bd=20251110&utm_source=bizbuysell&utm_medium=emailsite&utm_campaign=htmlbot
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This episode dives into a deal on an established elevator services business based in Houston (with a secondary branch in San Antonio), generating about $5.2 million in revenue and roughly $1.4 million in EBITDA — putting the asking price at roughly $11 million (≈ 7.5× EBITDA). The business offers elevator maintenance, modernization, repair, and installation to commercial, industrial, and institutional clients, with 23 technicians, a fleet of service vehicles, and long‑standing maintenance contracts, giving it recurring cash flow and limited customer concentration.
Key Highlights:
- Asking price: $11 M, with $5.2 M revenue → $1.4 M EBITDA (~27% margin)
- Business: 22‑year established elevator services firm in Houston + San Antonio with 23‑employee workforce, service fleet, maintenance contracts, and recurring client base
- Key strengths: Stable recurring revenue, high margin, regulatory/regional barriers to entry, limited customer concentration, clean financials
- Main challenges: Growth seems limited, financing is tricky — too big for SBA standard threshold, too small for traditional debt; likely need large equity injection (~40–50%)
- Industry context: Elevator service/maintenance is a niche with stable demand, but the value creation upside may rely on consolidation, scale, or roll-up strategy rather than organic growth
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