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Inside an $11 M Elevator Services Deal: High Margin, Hard Growth

18 snips
Dec 2, 2025
Explore the evaluation of a Houston elevator services company with an $11 million asking price. The hosts discuss financials, including $5.2 million in revenue and $1.4 million EBITDA. They break down the business's offerings, such as maintenance and modernization. Unique challenges surface, including market regulations and competition. The conversation highlights the potential for stable cash flow and financing complexities, alongside strategies like operational smoothing for future resale. Dive into the intricacies of a fascinating deal!
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INSIGHT

Sticky, High‑Margin Recurring Revenue

  • Elevator services offer naturally recurring, high-margin revenue driven by long-term maintenance contracts and regulatory stickiness.
  • The business in Houston shows 27% EBITDA margin and stable cash flows, making it attractive despite limited organic growth upside.
ANECDOTE

Home Elevator Story

  • Michael Girdley shared that his house contains a home elevator installed for a prior owner's special‑needs daughter.
  • He inspects it yearly and avoids heavy use, highlighting real maintenance realities even for residential elevators.
ADVICE

Plan For Heavy Equity And Specialized Loans

  • Expect financing challenges for 'tweener' deals around $1–2M EBITDA and plan for substantial equity injection.
  • Pursue SBA peri‑pusu or specialty lenders and prepare strong personal guarantors and net worth evidence.
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