Established Specialty Products Retailer, 20-Year Montana Operator

$8.3M

Revenue

$1.6M

SDE

4.6x

Multiple

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Full Editorial Writeup

This is a diversified specialty retail and service business operating from two well-located Montana facilities. It generates roughly $8.3M in annual revenue with $1.56M of adjusted 2025 EBITDA, and the listing describes a mix of retail products and services serving a specialized niche with a loyal, established customer base. The business is notable for being genuinely manager-run: 20 employees, documented SOPs, and very limited owner involvement.

The operation carries meaningful working assets, including $1.5M of inventory and $729k of FF&E, both included in the $7.2M asking price. Real estate for the two locations is owned and valued at $2.8M, but it is offered separately, with the seller willing to write a five-year lease if a buyer prefers not to buy the buildings. That structure lets a buyer control the deal size and finance the operating business independently of the real property.

What makes this deal interesting is the combination of a hands-off ownership model and a growing local market. The listing points to strong residential development and population growth in the trade area, plus two clear expansion levers: opening additional retail locations and building an outside sales program. The three-year weighted average EBITDA of $1.77M sits above the trailing 2025 figure, and 2026 is reportedly tracking to $1.7M to $1.8M, suggesting the earnings base is stable to improving.

Why we like it

The earnings are substantial and appear durable, with 2025 adjusted EBITDA of $1.56M and a 2023 to 2025 weighted average of $1.77M. The fact that the trailing average exceeds the most recent year, and 2026 is tracking back toward $1.8M, suggests the business is not in decline and the multiple is being taken on a defensible number.
This is a rare truly manager-run SMB, with 20 employees, documented SOPs, and explicitly minimal owner involvement. That means a buyer is acquiring a functioning organization rather than a job, which supports absentee or semi-absentee ownership and cleaner integration into a larger portfolio.
The 4.6x EBITDA multiple on the operating business is reasonable for a cash-flowing two-location retailer, and the real estate is optional. A buyer can take just the operations at $7.2M and lease at market, or bolt on the $2.8M of property, giving flexibility to optimize returns and financing.
The local market is a genuine tailwind, with the listing citing strong residential development and population growth expanding the customer base. Combined with two concrete growth levers, additional locations and an outside sales program, there is a credible path to grow EBITDA beyond the current run rate.

How to improve it

Verify and then lean into the outside sales program the listing flags as a primary growth lever. A dedicated B2B or commercial sales effort could diversify away from walk-in retail and add contract-based revenue that is stickier than one-off transactions.
Open a third location in the growing trade area using the existing SOPs and management playbook. The business already runs two sites hands-off, so a proven unit-economics model plus population growth makes measured expansion a natural next move.
Scrub the $1.5M inventory position for slow-moving and dead stock within the first 90 days. Retail with that much inventory ties up working capital, and tightening turns can release cash and improve return on the purchase price immediately.
Decide the real estate structure deliberately rather than by default. Model both scenarios, buying the $2.8M property versus a five-year lease, and choose based on cap rate, financing cost, and whether owning the dirt protects against future rent escalation in prime locations.
Formalize retention for the key managers who actually run the business. Since the value thesis depends on minimal owner involvement, lock in the top operators with incentives or stay agreements before close so the machine keeps running post-transition.
Build a simple monthly reporting cadence and KPI dashboard if one does not exist. An owner-lite business needs strong instrumentation on margin, inventory, and per-location performance so an absentee owner can spot problems early.

Diligence notes

Identify exactly what the business sells, since the listing is deliberately vague as a specialty retail and service operation. The recession resilience, competitive moat, and inventory obsolescence risk all hinge on the actual product category, so this is the first thing to nail down under NDA.
Reconcile the EBITDA figures and understand the adjustments. 2025 adjusted EBITDA is $1.56M while the weighted average is $1.77M, so pull the addbacks, confirm they are legitimate, and understand why the most recent year is below the three-year average.
Test the true level of owner involvement claimed as minimal. Interview the management team, map who makes buying, pricing, vendor, and hiring decisions, and confirm the seller is genuinely replaceable within the six-month consulting window.
Validate the local growth story with independent data. Confirm the residential development and population trends cited, and assess whether that growth actually drives demand for this specific product category or is generic optimism.
Analyze customer and vendor concentration plus revenue mix across the two locations. Understand what share is retail versus service, whether either location is underperforming, and whether any single supplier relationship is critical to margins.

Source

Originally listed on BizBuySell. View original listing →