Agricultural & Forestry Aerial Application Company, 21-Year Idaho Operator

$6.5M

Revenue

$1.3M

SDE

5.7x

Multiple

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Full Editorial Writeup

This is an aerial application (crop dusting) business founded in 2005, operating primarily across Idaho and the broader western United States. It uses a five-aircraft fleet to spray and treat agricultural row crops, timber and forestry acreage, wildlife-management zones, and habitat-restoration areas, serving a mix of private growers, forestry operators, and state and federal land-management programs. In 2025 it generated $6.52M of revenue and $1.32M of EBITDA, a roughly 20% margin, and treated more than 250,000 acres in 2023.

What makes this notable is the barrier to entry. Aerial application requires licensed agricultural pilots, specialized spray-equipped aircraft, FAA certifications, state applicator licensing, and years of relationships with growers and government agencies. The company has completed more than 85 federal awards over its history and holds contracted state wildlife and forestry agreements, which gives it a defensible book of repeat and semi-contracted work in a fragmented, aging-pilot industry.

The asking price of $7.5M is heavily tied to hard assets: the listing states approximately $7.5M of aircraft and equipment value is included in the sale. That reframes the deal. You are effectively buying an asset-backed operating business where the equipment largely covers the purchase price, with the earnings stream and government relationships as the premium. Interim 2026 numbers through September show $4.37M revenue and $1.71M EBITDA, suggesting margin expansion worth verifying.

Why we like it

Earnings quality is solid for the sector, with a ~20% EBITDA margin on $6.5M of revenue and a reported margin lift in the 2026 interim period ($1.71M EBITDA on $4.37M revenue). A meaningful portion of revenue comes from repeat and contracted work, including state wildlife and forestry agreements, which smooths the inherent seasonality.
The moat is real and hard to replicate. Aerial application demands licensed ag pilots, FAA-certified spray aircraft, state applicator licensing, and decades of agency relationships, and the national pilot pool is aging and shrinking. Five pilots on staff plus 85+ federal awards and standing state contracts form a genuine barrier that a new entrant cannot buy overnight.
Market tailwinds favor the buyer. Government land-management, wildfire mitigation, and habitat-restoration spending are growing, and forestry plus federal contract work is explicitly flagged as the biggest expansion lane. Food and timber production are non-discretionary, so demand holds up through a downturn.
The asset backing changes the risk profile. The sale includes roughly $7.5M of stated aircraft and equipment, meaning the purchase price is largely collateralized by tangible, resaleable hard assets. That provides downside protection you rarely get in a pure-services deal at a 5.68x multiple.

How to improve it

Increase year-round aircraft utilization. The fleet sits idle in off-season months, so chase winter and shoulder-season work such as forestry, habitat restoration, and southern-market contract spraying to raise revenue per aircraft without buying new planes. Even one additional seasonal contract region materially improves fixed-cost absorption.
Lean harder into government contracting. The company already has 85+ federal awards and standing state agreements, so hire or train a dedicated bid-writer to systematically pursue USDA, Forest Service, BLM, and state RFPs. Government revenue is sticky, creditworthy, and expands the contracted-revenue base that drives multiple expansion at exit.
Formalize and lengthen customer contracts. Convert repeat growers and agency relationships into multi-year or renewal-by-default agreements to harden the recurring portion of revenue. The more of the $6.5M you can show as contracted versus spot work, the stronger the business sells to the next buyer.
Address pilot bench and key-person risk immediately. With only five pilots and an owner-pilot central to operations, build a hiring and training pipeline and cross-train on agency relationships. Reducing dependence on any single pilot both de-risks operations and supports absentee or semi-absentee ownership later.
Expand geographically into adjacent western markets. The listing cites expansion into additional western states as a growth path, and aerial application is highly fragmented with many retiring sole operators. Use the platform's licensing, insurance, and contract credibility to acquire or roll up smaller regional operators.
Audit and optimize aircraft maintenance and insurance costs. Aviation insurance, parts, and maintenance are the largest controllable expenses in this model, and small procurement or scheduling improvements flow straight to EBITDA. Benchmark hull and liability premiums and maintenance contracts against sector norms in the first 90 days.

Diligence notes

Scrutinize the $7.5M stated asset value versus fair market value. Aircraft valuations depend heavily on airframe hours, engine time since overhaul, avionics, and spray-system condition, so commission an independent aviation appraisal. The entire deal thesis rests on whether these five aircraft are genuinely worth near the full asking price.
Validate the 2026 interim margin jump. The business shows $1.71M EBITDA on $4.37M revenue through September 2026 versus $1.32M on $6.52M for full-year 2025, which implies a dramatic margin improvement. Confirm whether this is a timing artifact, a one-time contract, or a durable structural change before underwriting it.
Quantify how much revenue is truly contracted versus spot. The listing says a meaningful portion is repeat and contracted, but get the actual split by customer, contract term, and renewal history. Government awards can be one-time, competitively rebid, or multi-year, and that distinction drives the recurring-revenue thesis.
Assess key-person and pilot dependency. Confirm which pilots and agency relationships the owner personally controls, whether pilots are under employment or non-compete agreements, and how transferable FAA and state operating certificates are on a change of ownership. Pilot attrition post-sale could gut capacity.
Review regulatory, environmental, and liability exposure. Aerial spraying carries drift, overspray, and chemical-application liability plus FAA and EPA compliance obligations. Examine the insurance program, loss history, any past claims or FAA incidents, and the status of all applicator and operating licenses.
Confirm location, seasonality, and working capital needs. Revenue is concentrated in Idaho and the western U.S. and is highly seasonal, so model the cash flow trough and off-season burn. Understand how much working capital is required to carry the business through winter and whether that is included in the deal.

Source

Originally listed on BizBuySell. View original listing →