33-Year Hunterdon County Service Company, New Jersey

$7.3M

Revenue

$2.5M

SDE

3.1x

Multiple

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Full Editorial Writeup

This is a 33-year-old service company based in Hunterdon County, New Jersey, doing $7.3M in annual revenue with $2.55M in owner cash flow, a healthy 35% margin. The listing keeps the actual service line vague, stating that no specific industry experience is required to run the company and leaning on the repeat-client base and long operating history as the core selling points. The owner is retiring, and the business is being sold as a going concern with seller support and training.

The standout numbers here are the durability signals: three decades of continuous operation and a repeat-client relationship base. That kind of longevity in a service business usually points to embedded customer relationships, referral flow, and a reputation that is hard for new entrants to replicate quickly. The broker is emphasizing that the SBA has pre-approved the deal, which de-risks the financing path for a qualified buyer.

The deal is priced at $8.0M, roughly 3.14x cash flow, and is structured for an SBA acquisition: about $824,000 down, a $500,000 working-capital line of credit, and projected first-year post-debt earnings of $1.399M. On paper that is a strong cash-on-cash return, but the entire thesis hinges on figuring out what this business actually does and whether that vague description is hiding customer concentration, a hard-to-transfer owner relationship, or cyclicality. Buyers should treat the anonymity as the first diligence item, not a minor detail.

Why we like it

Earnings quality looks real on the surface: $2.55M of cash flow on $7.3M of revenue is a 35% margin, which is strong for a service business and suggests either pricing power or an efficient cost base. A 33-year track record means these earnings have survived multiple recessions, which is a better durability proof than any pitch deck.
The moat here is time and relationships. A repeat-client base built over three decades implies switching costs, referral inertia, and a reputation moat that a two-year-old competitor cannot buy. If those clients are contracted or route-based rather than project-by-project, the recurring nature meaningfully de-risks the top line.
The financing structure is buyer-friendly and pre-vetted. SBA pre-approval, roughly $824K down against $2.55M of cash flow, plus a $500K working-capital line means a qualified operator controls a business throwing off seven figures after debt service. The projected $1.399M first-year owner earnings on $824K down is a compelling cash-on-cash profile if the numbers hold.
The 'no specific industry experience required' framing suggests the business runs on systems and staff rather than the owner's personal technical skill. Combined with a retiring seller offering training, this is the kind of manager-transferable operation that lets an outside operator step in without needing to be a tradesperson.

How to improve it

Immediately identify and codify the actual service line and revenue mix in the first 30 days. The listing's vagueness is a risk you must convert into a map: which clients, which services, what contract terms, and what percentage of revenue is repeat versus one-time. You cannot improve what you have not defined.
Formalize repeat clients into contracts or recurring agreements wherever informal. If revenue currently rides on handshake relationships and habit, converting even half the base to annual contracts or maintenance retainers dramatically increases both stability and future exit multiple.
Audit and reduce owner dependency before the seller leaves. A 33-year owner almost always holds key relationships personally, so spend the transition period systematically transferring those to a general manager and documenting every account, vendor, and pricing rule.
Deploy the $500K working-capital line strategically rather than as a cushion. Use it to fund a modest sales or account-management hire whose sole job is reactivating dormant clients and upselling the existing base, which is the cheapest growth available.
Install basic financial and operational reporting if it does not exist. Many long-held SMBs run on the owner's intuition; a simple monthly dashboard tracking revenue by client, gross margin, and labor cost will surface leaks and pricing opportunities within a quarter.
Test pricing on the repeat base. Businesses with 33 years of loyalty often underprice out of habit and fear; a measured 3 to 8 percent increase across sticky clients typically flows almost entirely to the bottom line with minimal churn.
Build a referral engine from the existing satisfied clients. Three decades of goodwill is an underused asset, and a structured referral or reactivation program can add organic growth without meaningful marketing spend.

Diligence notes

Determine exactly what this business does and why the listing hides it. Anonymity at this level of revenue can indicate a licensing requirement, a single dominant client, a regulated activity, or a sector the broker fears will scare buyers. This is the single most important item and everything else depends on it.
Verify the $2.55M cash flow with three years of tax returns and a quality-of-earnings review. Confirm what add-backs are baked into the SDE, whether owner compensation is normalized, and whether the margin is sustainable or propped up by deferred maintenance or undermarket labor.
Stress-test client concentration and contract structure. Pull a client-by-client revenue breakdown, confirm whether repeat business is contractual or discretionary, and quantify what happens if the top three accounts leave after the owner exits.
Assess owner dependency and transferability directly. Understand how involved the retiring owner is in sales, operations, and key relationships, and secure a transition agreement long enough to migrate those relationships, ideally 6 to 12 months plus a non-compete.
Confirm the SBA pre-approval terms and the actual capital stack. Validate the down payment, interest rate, amortization, and the $500K line conditions, and pressure-test the projected $1.399M first-year post-debt earnings against realistic debt service and working-capital needs.
Investigate any recurring cost or capital exposure hidden by the vague description. If this business depends on vehicles, equipment, licensing, insurance, or skilled labor in a tight NJ market, model the reinvestment and staffing risk before trusting the headline margin.

Source

Originally listed on BizBuySell. View original listing →