$17M Facilities Management Business for Sale: ETA Opportunity?
Feb 4, 2025
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Dive into the lucrative world of a $17M facilities management business for sale. Explore why it's a magnet for ETA buyers and the ripple effects of private equity entering lower markets. Experts dissect the company's financial health and employee dynamics, highlighting growth prospects and strategic decisions. Discover the intricacies of business valuation, hiring talent, and navigating niche opportunities within the sector. Whether you're a seasoned entrepreneur or a curious beginner, this insight is invaluable for anyone eyeing business ownership.
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Quick takeaways
The $17M facilities management business is attractive to ETA buyers due to its balanced revenue mix and solid EBITDA of $1M.
Growth opportunities exist by exploring new markets and implementing digital strategies, though concerns about scalability and operational limitations remain.
Deep dives
Revenue Mix and Financial Viability
A critical aspect of evaluating the discussed business is its revenue mix and financial viability. The company generates $17 million in revenue with approximately $1 million in EBITDA, primarily through contractual property management and facilities maintenance services. Lenders often seek clarity on the margins from each revenue channel to assess growth potential. The presence of a balanced mix of contractually secured and project-based revenue streams adds stability, though there are questions regarding how project revenue might impact overall profitability.
Growth Opportunities and Market Position
This business presents various growth opportunities, particularly through penetration into new markets and implementing digital marketing strategies. The operational model allows for potential scalability by forming niche customer segments within the Great Lakes region. Despite solid foundational elements, concerns exist regarding potential growth limitations, especially if the existing operational strategies have already maximized value. Understanding the market demand and addressing customer churn will be essential for the new buyer to capitalize on these opportunities.
Valuation and Financing Considerations
Valuation discussions highlight the potential sale price for the business, with estimates suggesting a range between $4 million and $8 million based on various factors. The relatively low requirement for available capital, listed at $300,000, raises questions about the overall purchase price and suitability for financing. Potential buyers may need to demonstrate industry experience to facilitate funding, with private equity interest increasing for businesses of this type. Clear financial records, including distinctions between stable contract revenue and fluctuating project revenue, will be pivotal in driving the negotiation and financing process.
In this episode, we break down a $17M revenue, $1M EBITDA property management and facilities maintenance business in the Great Lakes area. We discuss its appeal to ETA buyers, the impact of private equity moving down market, employee structure, growth opportunities, and financing options. Chelsea from Acquisition Lab and Heather from Viso provide expert insights on the market and lending environment.
Business Listing - https://www.caldergr.com/business-listing/286-contractual-facilities-management-company/
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Key Highlights:
Breakdown of the $17M revenue, $1M EBITDA business
Why this business is attractive to ETA buyers
The impact of private equity moving down market
Employee mix and service delivery model
Growth opportunities and strategic considerations
How to finance an acquisition like this
Expert insights from Chelsea (Acquisition Lab) & Heather (Viso)