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=htmlbot Welcome 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. Subscribe for more episodes: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1 Subscribe to our Newsletter: https://www.acquanon.com/newsletter Connect with us on Social Media: Twitter: https://twitter.com/acquanon LinkedIn: https://www.linkedin.com/company/acquanon 👋 Follow the Hosts Michael Girdley – Entrepreneur & investor. Twitter: https://twitter.com/girdley Bill D’Alessandro – CEO of Elements Brands. Twitter: https://twitter.com/BillDA Heather Endresen – SBA lending expert & advisor. Twitter: https://twitter.com/EndresenHeather Mills Snell – Small business investor & advisor. Twitter: https://twitter.com/thegeneralmills 💰 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.com Acquisition 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 growth