Established Commercial Painting Contractor, 30-Year Southeast Multifamily & Commercial Specialist

$16.4M

Revenue

$3.9M

SDE

4.2x

Multiple

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Full Editorial Writeup

This is a commercial painting contractor founded in 1992, operating out of Jacksonville, Florida and serving multifamily and commercial construction projects across the Southeastern United States. Core work is commercial and multifamily painting, supplemented by select light drywall and framing. The company runs a lean model: 30 full-time employees plus a subcontractor network, with field supervisors managing large-scale projects across multiple states. The owner sits mostly in an administrative oversight seat while experienced personnel run the field, which is a meaningful asset for a buyer who does not want to swing a brush.

The business does roughly $16.38M in revenue and $3.85M in cash flow (SDE), a healthy 23.5% margin for a painting outfit, which suggests strong project selection, repeat GC relationships, and disciplined subcontractor pricing. Three decades of operating history and lasting relationships with regional general contractors are the real moat here, since commercial painting is won on reliability, schedule adherence, and being the contractor a GC calls back rather than on novel technology.

The asking price is $16M at a 4.16x cash flow multiple, which is rich for a project-based construction services firm tied to new construction demand. The real estate is owner-owned but not included in the asking price (available separately or for lease), so a buyer is paying purely for the operating business plus $675K of included FF&E. The seller is retiring, offers transition support, and may provide seller financing, all of which matter at this price point.

Why we like it

Earnings quality is strong for the category: $3.85M SDE on $16.38M revenue is a 23.5% margin, well above typical painting contractor norms, which signals good project selection and pricing discipline. The cash flow is supported by repeat work from established regional general contractor relationships rather than one-off retail jobs. That repeat-GC dynamic gives the revenue more predictability than a typical bid-to-bid contractor.
The moat is relationship and reputation depth built over 30 years since 1992. Commercial GCs award work to painters they trust to hit schedules and not blow up a critical path, and switching costs are real once a sub is embedded in a GC's regular rotation. A new entrant cannot buy three decades of on-time delivery references.
The operating model is already manager-run with field supervisors and a subcontractor network, and the owner sits in administrative oversight rather than the field. This is exactly what an acquirer wants: the business does not depend on the seller carrying a ladder. A capable operator or even a semi-absentee owner with a strong GM could step in without the wheels coming off.
The subcontractor-leveraged model keeps fixed labor light at 30 full-time employees while still managing multi-state, large-scale projects. That asset-light structure means the business can scale project volume up and down with demand without carrying a bloated permanent payroll. It also means working capital, not capex, is the main constraint on growth.

How to improve it

Pull a full customer concentration report in the first 30 days and lock in the top GC relationships with master service agreements or preferred-vendor status. If a handful of general contractors drive most revenue, formalizing those relationships before the seller exits protects the asset you just paid 4.16x for. Tie key field supervisors to retention bonuses so the relationships transfer with the building, not the owner.
Diversify revenue beyond new commercial construction into recurring maintenance and repaint contracts for the same multifamily and commercial properties. Repaint and maintenance work is far less cyclical than new construction and smooths the revenue trough when building activity slows. Existing GC and property relationships are the warm channel to sell this in.
Expand the service line into the adjacent light drywall and framing work the company already touches, capturing more wallet share per project. Bundling finishing trades lets you bid larger scopes and become harder for GCs to replace. This is incremental margin on jobs you are already mobilized for.
Build a real estimating and project-margin tracking system if one is not already in place. At $16M revenue, even a two-point improvement in gross margin through tighter bid discipline and sub management is roughly $325K of additional cash flow. Standardizing the bid-to-actual feedback loop turns tribal knowledge into a repeatable system.
Use the multi-state footprint as a beachhead to expand geographic coverage into adjacent Southeast metros with the same GC clients who already build there. Following existing customers into new markets is the lowest-risk growth path because the relationship is already in place. This is a roll-up-friendly footprint if the thesis is to bolt on smaller painting outfits.
Negotiate the real estate purchase or a long-term lease at fair terms before closing rather than leaving it open. Controlling the owner-owned facility avoids a future landlord squeeze and may offer attractive financing economics if bundled into an SBA or acquisition loan. Clarify this early so it does not become a post-close hostage situation.

Diligence notes

Scrutinize customer concentration among the regional general contractors. A 23.5% margin on project work is impressive but fragile if one or two GCs represent the bulk of revenue, since losing a key relationship in a retiring-owner transition could gut the cash flow. Get the customer revenue breakdown for the last three years before getting comfortable at this multiple.
Stress-test the cyclicality of the cash flow against new construction demand. The listing itself flags that activity follows commercial construction, so pull the revenue and SDE trend through prior softening periods to see how the business performs when starts slow. A 4.16x multiple assumes durability that a new-construction-dependent painter may not have through a cycle.
Verify the subcontractor network's stability and the classification of those workers. The model leans on subs to flex capacity, so confirm there are no worker-misclassification exposures, lien risks, or key subs who could walk. Also confirm the 2 listed contractors and 30 employees are sufficient supervision to manage the project load described.
Confirm how much of the SDE depends on the owner's administrative role and relationships versus the management team. The owner is described as oversight-only, which is good, but quantify exactly which GC and vendor relationships live in the owner's head. Map the transition plan and key-person dependency carefully given the retirement-driven sale.
Examine work-in-process, retainage, and the backlog of contracted projects. In project-based construction, reported cash flow can swing on timing of billings and held retainage, so reconcile SDE to actual cash collected. A solid signed backlog at close materially de-risks the first year of ownership.

Source

Originally listed on BizBuySell. View original listing →