Read the full deal writeup
Sign up for a free Accredited account to read the editorial writeup, financials, and broker contact for this deal.
Full Editorial Writeup
This is a 32-year-old municipal services business in southeast Michigan that generates roughly $2.5 million in annual revenue and $646,941 in seller's discretionary earnings. The bulk of the top line comes from repairs, maintenance, and service contracts performed for municipalities, with new equipment sales layered on top as a secondary and underexploited revenue stream. The company runs out of a 10,000 square foot facility on 4.25 acres of owned real estate, with eleven employees plus the owner.
The customer base is government entities, which is exactly the kind of buyer you want in a downturn. Municipalities maintain essential infrastructure and equipment regardless of the broader economy, and they pay reliably. Service contracts and recurring repair work create a sticky, relationship-driven book of business that has compounded over three decades.
The asking price of $4,090,000 is built from a stated 4.0x SDE enterprise value of $2.59 million, plus $1.25 million in real estate and $250,000 of inventory. The seller will retain cash and A/R, retire all liabilities at close, and is prepared to carry a 10% note. On a pure operations basis the multiple is reasonable; the headline 6.32x is inflated by the bundled real estate.
Why we like it
- Earnings quality is strong for the category, with $646,941 of SDE on $2.5 million revenue representing roughly a 26% owner-earnings margin and a three-year average rather than a single cherry-picked year. Municipal repair and service contract revenue is recurring and relationship-driven, which makes the cash flow more predictable than a typical project-based services shop.
- The moat is the municipal customer base built over 32 years. Government contracts are sticky, switching costs are real, and a three-decade track record creates incumbency advantages that a new entrant cannot easily replicate. Eleven loyal, well-paid employees suggest institutional knowledge stays with the business.
- Government spending on essential equipment maintenance is structurally recession-resistant. Municipalities fund repairs and service through tax-supported budgets that do not evaporate in a downturn, so demand for this work persists through cycles when discretionary B2B spend dries up.
- The seller is explicitly framing the operations multiple at 4.0x, which is fair value rather than a stretch, and the real estate and inventory are layered on at cost or market. A 10% seller note signals confidence and gives the buyer alignment, and the owner-operator model means there is real room to professionalize.
- Northern California ATM Network, 242 Managed Locations
- 275-Location ATM Portfolio, Duval County FL
- Multi-State ATM Portfolio, ~250 Terminals, Fully Managed
- 270-Unit Florida ATM Route, Duval County, Professionally Managed
- 280-Location California ATM Route, Alameda County Cash-Handling Business
- 275-Unit ATM Route, San Francisco County
Want the full analysis on every deal? Unlock the complete platform with Accredited Pro to screen live listings and read our operator-level writeups.