🚧Equipment Rental Company making $703k/yr!

Here’s what we have for you today:

Confusing Corporate Sayings:

Teams Message: "Time for a quick call?"

Professional Translation
“They just need five minutes to clarify something“

Corporate Pivot Translation
“This 'quick' call is about to turn into a 60-minute deep dive, and they're unbothered by your schedule.“

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: This week, I came across a broker who actually follows up regularly and even cc’s the owner on emails, instead of acting like a gatekeeper with a recruiter-style approach. Honestly, that typical roadblock is frustrating—it can take around two weeks just to get any information on a business.

What’s refreshing is how companies listed on OpenFair.co operate. Their model is designed to sell businesses within 90 days, so brokers are incentivized to push deals forward and be helpful.

The business in question is a marine cleaning operation located a couple of hours from me. It’s profitable, but there are some concerns—mainly the reliance on skilled labor and the lack of contracts. That said, it shows potential, so I’ll keep digging.

I’m waiting on the owner to answer a few key questions before moving forward. My focus is on understanding:

1. The owner’s current role in the business,

2. Staffing and whether subcontractors are involved,

3. If the business can be run absentee or semi-absentee, and

4. Clarifying the financials.

I’ll share updates next week once I hear back.

Tyler’s Perspective (Experienced Buyer)

🚨 Status Update: The ability to structure deals is truly a valuable skill with small business acquisitions. It’s no secret that interest in small business acquisitions has skyrocketed recently, and that obviously means more competition for buyers. This is great news for sellers, but for buyers, it means you will need to differentiate yourself. For us, we are working on a uniquely structured deal as minority investors. We will be bringing cash to the deal, so luckily that will give us an inherently superior position in this negotiation, but the owner is also interested in having Sam and me involved in the management of the company. This will obviously be tricky to negotiate, but we anticipate engaging in a bit of a lengthy negotiation, as this is the owner’s first business and they are clearly emotionally attached to it. Stay tuned.

💰 Deals < $500k 💰

Business Name: Commercial Power Washing Business
Revenue: $786,543
Asking Price: $279,000
Profit: $283,455 (Profit Margin = 36%)
Location: Providence, RI
Established: 1990

✅ Pros:

• Proprietary cleaning technology enables efficient ground-level cleaning of multi-story buildings.

• Established contracts with hospitals, schools, and apartment complexes provide steady recurring revenue.

⚠️ Cons:

• Limited workforce of only two employees may restrict scalability and operational capacity.

📈 Growth Opportunities:

• Expand marketing efforts to target retail chains, industrial facilities, and additional commercial sectors.

• Increase regional coverage by offering services in neighboring states.

💰💰 Deals $500k - $2m 💰💰

Business Name: Title and Closing Services Company
Revenue: $1,600,000
Asking Price: $1,400,000
Profit: $600,000 (Profit Margin = 38%)
Location: New Hampshire
Established: 2002

✅ Pros:

• Dominant market position as a top-10 title services provider in New Hampshire.

• Diverse revenue streams from services like title examination, document preparation, and 1031 exchanges.

⚠️ Cons:

• Leased property limits long-term control and may require relocation if lease terms change.

📈 Growth Opportunities:

• Open satellite offices in neighboring regions to tap into new markets and increase revenue.

• Adopt digital tools for title processing and document management to improve operational efficiency.

💰💰💰 Deals $2m-$10m 💰💰💰

Business Name: Equipment Rental Company
Revenue: $1,900,000
Asking Price: $2,750,000
Profit: $702,611 (Profit Margin = 37%)
Location: Chilton County, AL
Established: 2005

✅ Pros:

• Strong reputation for reliability and high-quality service, built over 20 years.

• Surging demand across industries like renewable energy and infrastructure development.

⚠️ Cons:

• Seller plans to retain 10% ownership and act as a consultant, which may complicate decision-making.

📈 Growth Opportunities:

• Target additional industries such as mining and agriculture to further diversify revenue streams.

• Invest in new equipment to accommodate rising demand and secure larger contracts.