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Newsletter 014

DEALS: Accounting Firm, Field Design, Restoration, Pest Control, Marketing Agency | POST: How to Get in Brokers Inner Circle | EBIT Club Cap 📈🧢 & More

Newly Listed Deals

Accounting Practice

  • 📍 Location: Citrus County, FL

  • 💰 Asking Price: $1.7M

  • 💼 Cash Flow: $540.0K

  • 📊 Revenue: $1.8M

  • 🧮 Estimated DSCR: 2.2x

  • 💵 Estimated Cash Flow After Debt Service: $296.2K

  • ℹ️ Source: AccountingPracticeSales.com

  • Listed: 2 Days Ago

Highlights

  • Multiple revenue streams from accounting, payroll, and tax preparation services

  • Two office locations in Citrus County area with potential for geographic expansion

  • National franchise component providing established systems and brand recognition

  • Experienced staff in place allowing for manageable workload for owner

  • Strong DSCR of 2.2x exceeds typical lender requirements for service businesses

Landscape & Athletic Field Design Firm

  • 📍 Location: Texas

  • 💰 Asking Price: $2.0M

  • 💼 Cash Flow: $810.8K

  • 📊 Revenue: $1.1M

  • 🧮 Estimated DSCR: 2.8x

  • 💵 Estimated Cash Flow After Debt Service: $523.9K

  • ℹ️ Source: Sunbelt Network

  • Listed: 2 Days Ago

Highlights

  • Specialized expertise in sports-related design and construction oversight

  • Diverse service offerings including site work, drainage systems, and surface solutions

  • Strong project management capabilities from design through construction inspection

  • Owner retiring and willing to train new buyer to ensure smooth transition

  • DSCR of 2.8x far exceeds industry financing standards

Restoration Services Business

  • 📍 Location: Volusia County, FL

  • 💰 Asking Price: $5.8M

  • 💼 Cash Flow: $1.7M

  • 📊 Revenue: $3.7M

  • 🧮 Estimated DSCR: 2.0x

  • 💵 Estimated Cash Flow After Debt Service: $868.1K

  • ℹ️ Source: BusinessBroker.Net

  • Listed: 2 Days Ago

Highlights

  • Rapid response capability (within 60-minutes) for emergency restoration services

  • Established relationships with government agencies and private organizations

  • Trained team and equipment already in place for immediate operations

  • High profit margin of 55% indicating operational efficiency

  • DSCR of 2.0x significantly above industry average for restoration service companies

Pest Control Business

  • 📍 Location: Memphis, TN

  • 💰 Asking Price: $2.8M

  • 💼 Cash Flow: $600K

  • 📊 Revenue: $1.24M

  • 🧮 Estimated DSCR: 1.5x

  • 💵 Estimated Cash Flow After Debt Service: $198.4K

  • ℹ️ Source: BusinessBroker.Net

  • Listed: 3 Days Ago

Highlights

  • Established customer base in both residential and commercial markets

  • Recurring service contracts providing stable, predictable revenue

  • Strong local reputation in the Memphis market

  • Essential service business with consistent demand regardless of economic conditions

  • Diversified revenue streams across multiple service offerings

Digital Marketing Agency

  • 📍 Location: Relocatable

  • 💰 Asking Price: $5.5M

  • 💼 Cash Flow: $1.1M

  • 📊 Revenue: $3.0M

  • 🧮 Estimated DSCR: 1.4x

  • 💵 Estimated Cash Flow After Debt Service: $311.3K

  • ℹ️ Source: WebsiteClosers.com

  • Listed: 4 Days Ago

Highlights

  • 90% monthly recurring revenue with only 5% client churn rate

  • 40 active clients across the US and EU markets

  • Owner involvement limited to 5 hours weekly for management oversight

  • 70% gross profit margins through strategic global hiring practices

  • Relocatable business model offers geographic flexibility for new owner

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The Hidden Game: How Business Brokers Actually Work

Most people think buying a business starts when listings appear online. That's wrong. By then, it's often too late.

This isn't just an isolated observation. It's how the market actually works. The best deals never make it to public listings. They get snapped up by buyers the broker already knows and trusts.

The Inner Circle

Every broker maintains a mental shortlist of buyers they'll call first when a good business comes up for sale. Getting on this list is the real challenge, not finding listings online.

The conventional wisdom might suggest networking aggressively with brokers or cold-calling them with your criteria. That's ineffective. Brokers hear from dozens of would-be buyers every week claiming they're "serious" and "well-funded."

What works is more counterintuitive: find a specific deal first, then build the relationship through that deal, even if you don't end up buying it.

One searcher explained their approach:

Each interaction is a test. The broker is evaluating: Can this person move quickly? Do they analyze businesses thoughtfully? Will they waste my time? Are they professional when they pass on a deal?

The Problem with Being "Industry-Agnostic"

Many first-time searchers make a critical mistake when talking to brokers. They describe themselves as "industry-agnostic," meaning they're open to businesses in many different sectors.

This seems reasonable, especially for searchers who are geographically constrained but flexible on industry. But it's precisely the wrong approach with brokers.

As one experienced buyer put it:

Brokers don't want to work with generalists. They remember specialists. If you say you'll look at "any good business," the broker has no mental hook to remember you by. When a new listing in a specific industry comes in, who will they call? The person who can go deep with an experienced seller.

The solution isn't to fake expertise in an industry you know nothing about. Instead, pick areas where you have some knowledge or interest, and lead with those, especially if you’re doing a more geo focused search.

"I'm looking in the home services area such as X, Y and Z companies in the [your location] area. But I am also opportunistic on other industries as well."

This gives the broker something to remember you by, while still keeping your options open.

The Pricing Game

Another hidden aspect of the broker relationship involves pricing information. Sellers often list businesses with no asking price, instead describing them as "open to market bid."

This frustrates many buyers. One searcher wrote: "I don't want to waste my time with a seller that has unrealistic expectations, so I hesitate to participate in these type of deals."

The experienced buyers have a different approach: "I've had good luck speaking to the broker and asking for a 'whisper number' or 'where should I be to be competitive' question. I've rarely had a broker completely leave me without any range."

Another explained why brokers use this tactic: "They typically won't disclose the highest bid — and if they do, chances are they're sharing that information with other buyers too, making everyone chase their tail."

Understanding this game within a game helps you navigate it more effectively.

Building Credibility Through Each Interaction

Every interaction with a broker is a chance to build credibility. This happens in small ways:

  1. When you request an NDA, do it professionally

  2. When you review financial information, ask intelligent questions

  3. When you pass on a deal, explain specifically why

  4. When you make an offer, have your LOI tight and financing lined up

  5. When you commit to a timeline, stick to it

Most buyers mess up on at least one of these. They get emotional about price negotiations, ghost the broker when they lose interest, ask basic questions that show they haven't done their homework, or drag their feet on due diligence.

Each professional interaction builds your reputation with that broker. Eventually, they'll think: "This person knows what they're doing. I should call them first on the next good deal I get."

The Long Game

The most successful acquirers play a long game with brokers. They realize that the relationship matters more than any single deal.

This approach requires patience. You might have to review and pass on several deals before the broker sends you something truly good. You might need to maintain relationships with multiple brokers for months before getting a real opportunity.

But the payoff is enormous: access to deals others never see. As one searcher put it, "long-term, broad-based intermediary relationship-building really pays off: you need to be top of mind with the broker/banker, so when lightning strikes, you are there to catch it."

As a first-time acquirer, you'll naturally be at a disadvantage compared to experienced buyers or strategic acquirers. But by understanding and playing the hidden game—building relationships through credible interactions rather than just hunting listings—you can dramatically improve your odds of finding a good business to buy.

Remember what one searcher noted: "If you don't label yourself, the broker will." Make sure you're controlling your narrative and positioning yourself for success.

Invite Searchers, Get EBIT Hat 📈🧢

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Just like navigating the waters of entrepreneurship, this cap finds the perfect equilibrium between adventure and style. We've invested considerable time perfecting this design, making it your ideal companion for Zoom calls or casual networking events.

  • Premium Performance Cotton Blend

  • Unstructured for adaptability

  • Modern mid-profile fit

  • Convenient Snapback

  • Embroidered profit curve on front, margin target on side

The subtle design elements pay homage to cash flow, while the comfortable fit ensures you stay focused on what matters most - building a legacy. Go out and get EBIT.

Invite fellow searchers using the link below to our community, and we’ll send you one for free.

Disclaimer: Get EBIT, Inc. content is for educational/illustrative purposes only—not financial, legal, or business advice. AI-generated images illustrate concepts only—not actual businesses for sale. Past performance ≠ future results. Always do your own research and consult professionals before decisions. We don't guarantee accuracy or completeness and aren't liable for errors/omissions. All content © Get EBIT, Inc. unless stated otherwise; unauthorized use prohibited. Disclaimer subject to change without notice.

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