Acquisitions Anonymous - #1 for business buying, selling and operating Mix and Match in Florida: $12M Well Drilling & Pest Control Business
May 17, 2024
Exploring a $12M Florida deal with well drilling, pest control, and lawn care, including financing complexities. Discussion on challenges of categorizing modern businesses and navigating license transfers. Navigating financing challenges for mid-size businesses and creative deal structuring within SBA loan constraints.
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Financing a Large Acquisition
- This Florida-based business with $2.4M EBITDA is too big for a typical SBA loan, requiring creative financing.
- Consider seller financing, equity beyond the usual 10%, or splitting the business and selling parts separately.
Mishmash or Strategic Mix?
- The mix of well drilling and other home services may appear messy at first glance, but it could offer counter-cyclical advantages.
- This diversified approach provides stability and potential tailwinds with the continued growth in Florida.
Split and Sell Strategy
- Buy the combined business, then split it to sell to specialized buyers or platforms.
- Private equity firms often pay higher multiples for niche businesses, making this a potentially profitable strategy.