TL;DR

  • 4 Prime Business Opportunities Across Sectors:

    • CPA Firm: $349K Cash Flow

    • Electrical Contractor: $1M Cash Flow

    • Septic Business: $702K Earnings

    • IT Managed Services: $1.2M Cash Flow

  • Exclusive AGI Underwriting Guide:

    • Navigate AI's Impact on Business Acquisitions

    • Identify AI Risk Factors

    • Discover AI-Resilient Business Categories

CPA Firm with Strong Profit Margins

Well-established Maryland CPA firm with impressive client mix and consistent performance. Strong fundamentals: $349K cash flow on $600K revenue (58% margins), experienced staff in place, and seller offering extended transition support—ideal acquisition for a CPA looking to acquire an established practice.

  • 📍 Location: Harford County, MD

  • 💰 Asking Price: $750K

  • 💼 Cash Flow: $349K

  • 📊 Revenue: $600K

  • 🧮 Estimated DSCR: 2.47x

  • 💵 Estimated Cash Flow After Debt Service: $218K

  • ℹ️ Source: DealStream

  • Listed: 4 Days Ago

Business Highlights

  • 58% profit margins exceptional for professional services

  • High-quality client base in affluent community

  • Seller financing available demonstrating confidence

  • Management staying ensuring smooth transition

  • Strong demand for professional tax services

Commercial & Residential Electrical Contractor

Mid-Atlantic electrical contractor with exceptional growth and profitability. Strong fundamentals: $1M cash flow on $8.6M revenue, 35.7% annual growth since 2021, and opportunities for recurring revenue expansion through inspection services and geographic growth.

  • 📍 Location: Mid-Atlantic, US

  • 💰 Asking Price: Not Disclosed

  • 💼 Cash Flow: $1M

  • 📊 Revenue: $8.6M

  • ℹ️ Source: DealStream

  • Listed: 3 Days Ago

Business Highlights

  • 12% cash flow margins demonstrating operational efficiency

  • 35.7% CAGR from 2021-2024 with maintained profitability

  • Two facilities 7,400 SF + 1,200 SF with expansion room

  • 14,000 customer database for marketing opportunities

  • Owner transition support both shareholders willing to stay

Septic Contracting Business

Established Miami-Dade septic contractor serving residential and commercial clients. Strong fundamentals: $702K discretionary earnings on $3.6M revenue, 12 employees, and positioned in high-growth Florida market with opportunities for route expansion and service diversification.

  • 📍 Location: Broward County, FL

  • 💰 Asking Price: $1.85M

  • 💼 Cash Flow: $702K

  • 📊 Revenue: $3.6M

  • 🧮 Estimated DSCR: 2.15x

  • 💵 Estimated Cash Flow After Debt Service: $376K

  • ℹ️ Source: Transworld Business Advisors

  • Listed: 2 Days Ago

Business Highlights

  • 20% profit margins on essential septic services

  • Absentee ownership model with established operations

  • 12 employees including experienced field crews

  • Growth territory serving Miami-Dade and surrounding areas

  • Expansion ready for new drain fields and installation services

IT Managed Services Company

Kansas-based MSP serving small and medium businesses with full-service IT support. Strong fundamentals: $1.2M cash flow on $6.9M revenue, 34% recurring revenue, no client concentration, and owner exiting for other ventures—ideal platform for strategic consolidation or geographic expansion.

  • 📍 Location: Kansas

  • 💰 Asking Price: Not Disclosed

  • 💼 Cash Flow: $1.2M

  • 📊 Revenue: $6.9M

  • ℹ️ Source: DealStream

  • Listed: 4 Days Ago

Business Highlights

  • 34% recurring revenue providing stable cash flow base

  • No client concentration reducing revenue risk

  • 17% profit margins with upward financial trends

  • Full-service offering for SMB market segment

  • Clean exit opportunity owner pursuing other ventures

Note: DSCR calculations assume 10.50% SBA 7(a) rate, 10% down payment, 10-year term

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🧠 The AGI Underwriting Guide: What Every Searcher Should Know

A searcher recently closed on a $3M marketing agency. This month, AI tools can produce copy that rivals their junior staff. Another searcher is acquiring a $2M accounting firm with plans to automate category matching and accounting entries—estimated annual savings of $200K.

Both deals highlight the same reality: if you're buying a business today, you're underwriting its ability to adapt to artificial intelligence.

The AGI Timeline: What We Know

Most AI experts predict Artificial General Intelligence—AI that performs at human levels across cognitive tasks—will arrive between 2027-2035. OpenAI's Sam Altman suggests the earlier end of this range. Others point to 2035-2040.

The timeline remains uncertain, but the direction is clear. Current AI tools already automate knowledge work at accelerating rates. For searchers, this means the businesses you acquire today will likely operate in a fundamentally different environment within your typical hold period.

Understanding this shift helps you make better acquisition decisions and build more valuable companies.

Three Categories of AI Risk

When evaluating targets, consider these risk factors:

Automation Risk: Can AI handle core business processes? Examples: Data entry services, basic content creation, simple bookkeeping tasks Key question: Which roles could AI perform for under $100/month?

Competitive Moat Risk: Does AI commoditize the business advantage? Examples: SEO agencies, ad optimization services, basic consulting Key question: Will AI make this expertise widely accessible?

Distribution Risk: Could AI change how customers find solutions? Examples: Amazon arbitrage, Google ads dependency, app store businesses Key question: How might AI alter customer acquisition?

Rate each category 1-10 for your target company. Scores above 24 warrant careful consideration.

The Ownership Advantage

Here's the opportunity many searchers miss: AI typically strengthens the position of business owners relative to individual workers.

While workforce transitions will require thoughtful management, business owners can deploy AI to:

  • Reduce operational costs by automating routine tasks

  • Increase service quality through AI-enhanced processes

  • Scale without proportional headcount growth

  • Improve margins while maintaining competitive pricing

Consider the accounting firm example: automating categorization and entries could reduce labor costs by $200K annually while improving accuracy and speed.

Businesses That Benefit from AI

Some sectors become more attractive, not less, as AI advances:

Physical Service Businesses: HVAC, plumbing, landscaping AI enhances scheduling, diagnostics, and customer service without replacing core delivery.

Licensed and Regulated Industries: Insurance, healthcare, government contracting Regulatory barriers remain while AI improves internal operations.

Relationship-Dependent Businesses: B2B sales, senior care, custom services Human connections become more valuable when routine interactions are automated.

Data-Rich Operations: Manufacturing, logistics, agriculture Proprietary operational data creates AI advantages competitors can't replicate.

Local Brand Businesses: Established service providers with community ties Trust and reputation become more valuable when alternatives are commoditized.

Updated Due Diligence

Add these considerations to your evaluation process:

  1. AI Enhancement Potential: Which processes could current AI tools improve or automate?

  2. Defensible Elements: What aspects of the business remain valuable if cognitive tasks become commoditized?

  3. Implementation Capability: Can current management effectively deploy AI tools?

  4. Customer Retention: How might AI affect client relationships and switching costs?

Consider including an "AI Readiness Assessment" in your investment committee materials.

AI Tools for Searchers

Use current AI capabilities to improve your search process:

Deal Sourcing: Automate prospect research and initial outreach Financial Analysis: Generate models and scenario planning faster Documentation: Draft LOIs, agreements, and follow-up communications Due Diligence: Summarize calls, analyze documents, identify risks

These tools help you evaluate more opportunities and make better decisions.

Long-Term Perspective

The businesses you buy today will likely operate through a significant technological transition. This creates both risks and opportunities.

Companies that adapt AI thoughtfully can achieve substantial competitive advantages. Those that ignore these changes may find themselves at a disadvantage regardless of their historical performance.

The goal isn't to predict exactly how AI will evolve, but to position your investments to benefit from likely developments while protecting against potential disruptions.

Focus on businesses with strong fundamentals that can be enhanced by AI rather than replaced by it. Look for management teams capable of embracing new tools while maintaining their core value proposition.

The opportunity for searchers is significant: acquire businesses before AI transformation is fully priced in, then lead that transformation as an owner.

Business Categories to Consider

Strong AI Enhancement Potential:

  • Service businesses with scheduling/routing components

  • Companies with repetitive administrative tasks

  • Operations with large data sets to analyze

  • Businesses serving local markets with personal relationships

Higher AI Displacement Risk:

  • Pure information processing services

  • Businesses dependent on single platforms

  • Companies with easily replicable expertise

  • Operations with high routine cognitive work

The pattern: businesses that can use AI as a tool typically outperform those that compete with AI as a substitute.

Disclaimer: Educational content only - not investment advice. Listings from third-party sources, accuracy not guaranteed. Do your own due diligence. Consult professionals before making decisions.

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