Hawthorne Industrial Services
Industrial Services · Columbus, OH · 42 employees · Established 2009
84/100
Strong BuyRevenue
$4.2M
EBITDA
$980K (23% margin)
Asking
$4.5M (4.6x EBITDA)
Fair Value
$4.0-$4.8M
Why owner is selling
Founder is seeking retirement after 18 years and prefers a buyer that preserves current leadership continuity.
Valuation method
Blended DCF and precedent transactions, weighted to regional industrial service deals in the 3.8x-5.2x EBITDA range.
Why it fits criteria
Recurring maintenance contracts, low customer concentration, and immediate tuck-in potential with your existing Midwest platform.
Risks
- Top account represents 22% of revenue concentration.
- Second-line management depth remains moderate.
- No outstanding legal or environmental liabilities identified.
Growth ideas
- Expand recurring service plans into neighboring counties.
- Introduce selective cross-sell of compliance offerings.
- Improve route density through dispatch optimization software.
Profitability
82
Growth
79
Risk
71
Acq. Fit
87
Key strengths
- Stable multi-year contract base across core customers
- Consistent EBITDA margin profile above peer median
- Clear post-close add-on opportunities in nearby markets
Deal killers
- Loss of top customer before close
- Adverse findings in environmental diligence
- Material churn in technician retention over two quarters
Next step: Initiate management call and request quality-of-earnings data room access.