Municipal Services Co - Repairs, Maintenance & Equipment Sales

$2.5M

Revenue

$647K

SDE

6.3x

Multiple

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Full Editorial Writeup

True Servant Leadership is a far too rare quality, but this business has succeeded based on that core ideal; a great leader should serve and support individuals to flourish. Established over 30 years... Businesses Franchises Brokers Loading... Proven Municipal Services Business with Real Estate Michigan Asking Price:$4,090,000 Cash Flow (SDE):$646,941 EBITDA:Not Disclosed Gross Revenue:$2,500,000 Real Estate:$1,250,000 Established:1990 Proven Municipal Services Business with Real Estate Business Description True Servant Leadership is a far too rare quality, but this business has succeeded based on that core ideal; a great leader should serve and support individuals to flourish. Established over 30 years ago with the desire to support municipal workers in the community, the founder kept that core ideal while growing a team and company into the successful municipal service business of today. After a full career the owner is now ready to pass the torch to the next generation. Located in a desirable, small town in southeast Michigan, the business operates from a 10,000 square foot facility on 4.25 acres. The real estate (land and building) are included in the total listing price of this opportunity. The company currently has eleven loyal and well paid employees in addition to the owner operator. The majority of the company’s top line comes from repairs, maintenance, and service contracts performed for municipalities, but new equipment sales contribute additional revenue and present a growth opportunity (for a qualified candidate). Now, let’s dive into the numbers. Over the past three tax years top line revenues averaged $2.5 million resulting in an annual SDE (seller’s discretionary earnings – the historical, normalized annualized cash flow available to pay the owner and service debt) of $646,941 Using an industry acceptable SDE multiple of 4.0x results in an enterprise value of $2.59 million. Adding that enterprise value with the current market value of the real estate ($1.25 million) and the cost basis of the on-hand inventory ($250,000) results in a total business valuation of $4,090,000. The seller envisions a sale in which he retains the cash and A/R in the business at close while retiring all liabilities. He is also prepared to carry a 10% seller note for a qualified buyer. Ad#:2517553 Detailed Information Inventory: $250,000Included in asking price Employees: 11 (10 Full-time, 1 Part-time) Business Location Real Estate: Owned Included in asking price Building SF: 10,000 Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Geoff Kowalski Praxis Business Brokers View My Listings Phone Number 269-586-9191 Voice only (no SMS) Sponsoring Broker: Ryan Johnson Ad#:2517553 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number* Enter Phone Number Email Address* Enter Email Address Zip Code Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. 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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.

How to improve it

Push new equipment sales, which the seller flags as the primary growth lever. Existing municipal relationships already trust the company for service, so introducing a structured equipment sales motion with financing options converts service customers into capital purchase customers at higher ticket values.
Formalize and lengthen the service contracts. Convert ad-hoc repair relationships into multi-year maintenance agreements with annual escalators, which smooths revenue, increases enterprise value at exit, and locks in the municipal accounts against any future competition.
Expand geographically to adjacent municipalities and counties in Michigan. The model is repeatable across any local government with similar equipment needs, and a focused outbound effort to neighboring towns can grow the contract base without reinventing operations.
Build a layer of management to replace the owner-operator's daily involvement before any expansion. The business is currently owner-dependent, so promoting or hiring an operations lead in the first 90 days protects continuity and makes the business saleable at a higher multiple later.
Audit pricing on existing service contracts. After 32 years under one owner, there is a strong chance work has been priced on relationship rather than current cost, and a disciplined pricing review can lift margins meaningfully with minimal customer churn given the stickiness of these accounts.
Implement a CRM and job-tracking system to capture customer history, equipment age, and service intervals. This data enables proactive outreach for both recurring maintenance and equipment replacement, turning the equipment sales upside into a systematic pipeline.
Evaluate the 4.25 acre property for additional revenue or sublease, or alternatively a sale-leaseback to recapture the $1.25 million tied up in real estate. Recapitalizing the building could free capital to fund the equipment sales expansion while keeping operations in place.

Diligence notes

Verify customer concentration across the municipal accounts. A handful of large municipal contracts driving the bulk of the $2.5 million in revenue would materially change the risk profile, so map revenue by customer and review contract renewal terms and bid cycles.
Scrutinize the SDE add-backs and confirm the $646,941 is a clean three-year normalized figure. Confirm what the owner's actual compensation and any personal expenses run through the business, since replacing an owner-operator with hired management will reduce true cash flow.
Assess employee retention and dependency. With only eleven employees, the loss of one or two technicians with municipal relationships could hurt, so understand wage structures, tenure, and whether key staff will stay through and after transition.
Confirm how municipal contracts are awarded and whether they require competitive bidding or are sole-sourced. Government procurement rules can force re-bids, so understand the durability of the existing book and any certifications, bonding, or licensing required to retain it.
Validate the real estate value and condition independently. The $1.25 million is seller-stated; obtain an appraisal of the 10,000 square foot facility and 4.25 acres, and inspect for deferred maintenance or environmental issues common to equipment service facilities.
Inventory the $250,000 of on-hand stock and confirm it is current and saleable rather than aged or obsolete. Since it is being added to the purchase price at cost basis, verify it reflects realizable value tied to active equipment lines.

Source

Originally listed on BizBuySell. View original listing →