3 Deals We're Watching

At $2.25M against $802K in cash flow, this NJ HVAC contractor is priced at 2.8x SDE. That is a real discount in a sector where comparable shops often trade higher, including the Oklahoma City HVAC listing this week at 4.4x. The 19.4% margin on $4.1M revenue is healthy for a trades business. The revenue mix of service calls, replacements, duct fabrication, and recurring maintenance across Monmouth, Middlesex, and Ocean Counties gives it year-round stability rather than pure seasonal swings. With a typical 10% down SBA structure, annual debt service would land around $325K–$330K (assuming roughly 10.5% over 10 years). That leaves about $475K before a GM salary and capex, which is roughly 2.4x coverage and plenty of cushion. One thing to verify early: the title claims 30+ years, but the listing says 20 years and established 2005. You'll want to understand how much of that brand reputation is tied to the current owner and how deep the 11-person bench really is.

Verdict: Strong Buy — the best combination of scale, multiple, and financeability on the board this week