$10M business… but what do you actually keep?
This environmental abatement and demolition business is listed at $4.49M, generating about $10M in revenue and $1M in cash flow.
It also comes with a 45-year track record, multiple service lines, and long-term contracts.
On the surface, this looks like a large, stable operation.
But size can be misleading.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $340K per year.
That’s solid — but not impressive for a $4.5M deal.
The Core Problem
The margin is doing the damage.
- Low profitability: 10% vs ~22% industry average.
- Tight jobs: Likely competitive bidding and cost pressure.
- Less buffer: Small errors can erase profit quickly.
At this scale, margin matters more than revenue.
Where It Breaks
You’re paying more for a less efficient business.
- Overpriced: 4.49x vs ~2.5x industry average.
- Below-average margin: Yet priced above market.
- Heavy operations: 49 employees and complex projects.
- Thin DSCR: 1.51 leaves limited cushion.
This is not what a premium deal should look like.
Why This Happens
Big businesses create a false sense of value.
Buyers see:
- $10M in revenue
- Established contracts
- Long history
And assume it must be worth more.
But larger construction businesses often have:
- Lower margins
- More overhead
- More execution risk
Bigger doesn’t automatically mean better.
What This Really Is
This is a scale trap.
- Large revenue
- Low efficiency
- High price
You’re managing a complex operation… for a mid-tier return.
BizHub Verdict
This deal scores a 5.8 / 10.
Not because it’s a bad business — but because the efficiency doesn’t justify the price.
Big numbers don’t matter if you don’t keep enough of them.
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Want to see the original listing? View it here →