EBIT COMMUNITY · ISSUE #84
Five Deals. One Surprising SBA Credit Story.
A municipal water contractor at about 2.3× stated earnings, a remote agency reporting 80% recurring revenue, and a 32-year drywall business with property in the asking price. Plus, a new Stable Industries analysis on gas stations.
This week: Five listings worth investigating, the risk beyond your down payment, and an unexpected industry default-rate finding.
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FEATURED RESEARCH · STABLE INDUSTRIES, NO. 2
⛽ Gas Stations: Surprisingly Low Defaults. A Rising Risk.
0.99% annual defaults for SBA gas station loans versus 2.82% across 7(a). Roughly one in three FY2025 gas station loans with known business age financed an acquisition. Historical three-year defaults for gas station acquisition loans were just 1.34%.
There's a catch: these loans tend to be large and often involve property, and recent annual defaults have been climbing. We separate what the SBA data actually proves from what it doesn't.
Five Businesses Worth a Closer Look
Selected for earnings, operating history, transferability and downside risks. All figures are broker-reported, not independently verified. SDE, EBITDA and other cash-flow definitions differ, so the stated multiples are only quick screens.
★ DEAL OF THE WEEK · 01 / PENNSYLVANIA
Municipal Water & Wastewater Contractor
$1.30M asking · $557K reported SDE · ~2.3×
Near Pittsburgh. The broker reports $2.98M revenue, eight full-time employees, municipal water/wastewater projects, and equipment included. Described as SBA-eligible, not lender-approved.
Why it stands out: Infrastructure customers and a low stated earnings multiple at a manageable acquisition size.
What we'd investigate: Recurring versus bid-based projects, backlog quality, gross margins, bonding capacity, receivables, and exactly which assets transfer.
02 / NATIONWIDE · REMOTE
Digital Agency · 80% Reported Recurring Revenue
$5.00M asking · $1.41M reported cash flow · ~3.5×
A remote design and development agency reporting $2.65M revenue, approximately 20 active clients, and three employees supported by contractors. The broker cites two NBA teams as clients.
Why it stands out: Contract/repeat revenue and geographic flexibility.
What we'd investigate: Client concentration, contracted versus repeat revenue, owner replacement cost, and whether cash flow survives the transition. Remote does not mean absentee.
03 / ORLANDO, FLORIDA
Tile & Flooring Installer · $1.6M EBITDA
$4.90M asking · $1.60M reported EBITDA · ~3.1×
A Central Florida installer serving major homebuilders. The broker reports around $9M revenue and 18–24 months of rolling work. The seller may retain a minority stake.
Why it stands out: Meaningful reported earnings and potential owner-transition continuity.
What we'd investigate: Top builder concentration, binding versus indicative backlog, margin durability through a housing slowdown, and rollover terms.
04 / INDIAN RIVER COUNTY, FLORIDA
32-Year Drywall Contractor · Real Estate Included
$1.525M asking · $478K reported SDE · ~$625K property value per listing
A long-running drywall company reporting $2.64M revenue and seven employees. The broker indicates the real estate is included in the asking price.
Why it stands out: An operating history and property ownership together in a comparatively modest total ask.
What we'd investigate: Independent real estate appraisal, market-rent normalization, builder concentration and working capital. The simple asking-price/SDE multiple is misleading when property is included.
05 / CHICAGO, ILLINOIS
Sign Fabrication & Installation · Earnings Need Reconciliation
$3.50M asking · $1.56M reported SDE · $835K reported EBITDA
A sign manufacturing and installation business reporting $2.97M revenue. The price equates to 2.2× SDE or 4.2× EBITDA, depending on which number a buyer uses.
Why it stands out: A differentiated fabrication/service combination, but not a verified bargain.
What we'd investigate: The $725K gap between earnings measures, owner payroll, one-time addbacks and equipment financing. Request an SDE-to-EBITDA bridge before discussing price.
What did you think of today's issue?
Disclaimer: Educational content only, not investment advice. Listings are from third-party sources and accuracy is not guaranteed. Do your own due diligence. Consult with legal, accounting, and financing professionals before making any acquisition decisions.
