Inside an $11 M Elevator Services Deal: High Margin, Hard Growth

In this episode the hosts walk through evaluating a potential acquisition of a Houston‑area elevator services company, debating whether a 7.5× EBITDA asking price can pencil out given the financing constraints and growth challenges.Business Listing - https://www.bizbuysell.com/business-opportunity/strong-cash-flow-elevator-services-business-houston-texas/2439153/?J=bot&bn=114637964&bd=20251110&utm_source=bizbuysell&utm_medium=emailsite&utm_campaign=htmlbotWelcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them.💰 Sponsored by:Go High Level – The all-in-one sales and marketing platform built for agencies and entrepreneurs. Automate, manage, and grow your business at https://www.gohighlevel.comAcquisition Lab – Your fast-track to business ownership. Get hands-on support, world-class resources, and join a top-tier community of acquisition entrepreneurs. Schedule your free consultation at https://www.acquisitionlab.com and mention Acquisitions Anonymous!This episode dives into a deal on an established elevator services business based in Houston (with a secondary branch in San Antonio), generating about $5.2 million in revenue and roughly $1.4 million in EBITDA — putting the asking price at roughly $11 million (≈ 7.5× EBITDA). The business offers elevator maintenance, modernization, repair, and installation to commercial, industrial, and institutional clients, with 23 technicians, a fleet of service vehicles, and long‑standing maintenance contracts, giving it recurring cash flow and limited customer concentration.Key Highlights:- Asking price: $11 M, with $5.2 M revenue → $1.4 M EBITDA (~27% margin)- Business: 22‑year established elevator services firm in Houston + San Antonio with 23‑employee workforce, service fleet, maintenance contracts, and recurring client base- Key strengths: Stable recurring revenue, high margin, regulatory/regional barriers to entry, limited customer concentration, clean financials- Main challenges: Growth seems limited, financing is tricky — too big for SBA standard threshold, too small for traditional debt; likely need large equity injection (~40–50%)- Industry context: Elevator service/maintenance is a niche with stable demand, but the value creation upside may rely on consolidation, scale, or roll-up strategy rather than organic growthSubscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [email protected]

There are no comments yet.

Please log in to write the first comment.