WHICH DEAL WOULD YOU CHOOSE? POND MAINTENANCE OR AUTO DETAILING?
We're looking at two potential deals for our next acquisition, and wanted to get the community's thoughts on which would be a better choice.
Residential/HOA/Commercial pond maintenance
Revenue growing at 30% y/y
50% of revenue is from ongoing maintenance contracts
Priced at 2.5x
No middle management, owner works 60 hrs/week managing all sales
Car detailing business
Low barriers to entry, but good reputation
EBITDA - $600,000
Revenue doubling y/y, but close to maxing out capacity at facility within 6-12 months
Priced at 3.5x
Good middle management, owner is able to work "on" the business instead of "in" the business
Some small overlap with the business in our existing portfolio
If that's all the information you were given, which would you choose?