DBE status and contract transferability risks

In this episode the hosts dissect a $23 million asking‑price acquisition of a Miami‑based specialty contractor with $41 M revenue, $4.7 M EBITDA, a $52 M backlog—and dig into its contract structure, accounting risks and deal suitability.

Business Listing Link – https://businessesforsale.nuwireinvestor.com/business-opportunity/specialty-contractor-with-long-term-contracts-and-62mm-backlog/2395873/?J=AN

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In this episode, the team reviews a specialty contractor serving healthcare and aviation clients in Miami‑Dade County, founded in 2007, with ~$41 M in revenue, ~$4.7 M in EBITDA, and a contracted backlog of ~$52 M. The asking price of ~$23 M implies about a 4.9× EBITDA multiple. The business claims that 80‑85% of revenue comes from renewable 3‑5 year institutional contracts with government and institutional clients, and emphasizes a capital‑light model with only ~$100k in equipment and ~53 employees.

Key Highlights:
- Revenue ~$41‑45 M, EBITDA ~$4.7 M (~10% margin) with backlog ~$52 M.
- Asking price ~$23 M → ~4.9× EBITDA, which is reasonable compared to many contractor deals.
- Contract structure: 80‑85% from 3‑5 year renewable institutional contracts (government, healthcare, aviation) which reduce reliance on open bidding.
- Accounting/diligence risks: low equipment/FF&E (~$100k) suggests perhaps subcontract model or specialized niche; retainage, WIP, deferred revenue and billing practices must be scrutinized.
- Buyer fit & financing: likely better for an industry‑experienced buyer; banks/lenders will want low leverage and proven transition plan given the contract complexity and possible change‑of‑control risk.

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