Acquisitions Anonymous - #1 for business buying, selling and operating $2.2M EBITDA Traffic Management Firm: Should You Buy It?
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Jan 3, 2025 Dive into the intriguing world of a $2.2M EBITDA traffic management firm, discussing its impressive growth potential and operational insights. The conversation touches on the unique challenges of scaling low CapEx businesses and the importance of established contracts. Delve into the crucial topic of insurance diligence in high-risk acquisitions and its impact on costs. The hosts also explore innovative financing strategies for self-funded searchers, emphasizing the complexities of deals within the $5 to $15 million range. Perfect for M&A enthusiasts!
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Business Model
- The traffic management firm primarily operates as a staffing agency, providing personnel for events and construction.
- They likely have recurring/project-based contracts with venues and organizers.
Managing Traffic Firms
- Secure recurring contracts for revenue stability in traffic management.
- Manage staffing pipeline effectively due to fluctuating demand and low wages.
Employee Composition
- The firm's 39 employees likely comprise office staff, not traffic personnel.
- The traffic workers are probably independent contractors, not direct employees.