The trailing 12 months from December 1, 2024, to November 30, 2025, had revenues of 2.2M and properly adjusted earnings of 444K. The sales price of 950K is Less than 2.15 times the trailing 12 months earnings of 444K which is well below market. Plus, as of December 15th, we have confirmed that December of 2025 is trending higher than December of 2024 which means that they will finish the 2025 above the trailing 12 months earnings of 444K. The company is growing and has a typical 1 month backlog and has a mix of 60% residential, 35% commercial, and 5% light industrial like fiber optic wiring/pipes. The custom real estate was appraised in June of 2025 at 750K and is contingent on the purchase of the business. An SBA loan for both the business and the real estate results in the real estate monthly payment being below what their lease rate was, and you get to build equity in both the real estate and the business.

The sales price should be higher, but they had a temporary drop in profitability in 2024. The owners state: “In 2024, we received a large amount of business from a long-time and very productive referral partner. We made it a priority to schedule and complete their projects because of our strong and ongoing relationship with them. Doing that reduced the number of other projects that we could take on that weren’t referral based. 2024 had a higher-than-normal amount of referral fees that we paid out. Additionally, we had already decided in 2024 that we would be selling the business so that we can spend more time with our aging parents, so we chose not to hire additional employees or add additional vehicles. We also had been slowing down a little over the years from working more hours and once we decided to sell the company, our broker recommended that Joel work at least 25 hours a week and to not let it slide any further which has helped in 2025.” End quote. When you look at the adjusted earnings excel spreadsheet in the blue data room link, you can clearly see that 2024 is an outlier but it could not be ignored in a valuation. I dropped the multiplier from a normal market multiple of 2.5 to a discounted multiple of 2.15 times which is a price adjustment down by .35 X 444K which is a discounted price of 156K. They agreed to discount the sales price because the 2024 tax return means that we will need a strong buyer and a low price to get this past a preferred SBA lender.

Since 2008, this company has been one of the largest hazardous removal companies by volume in Colorado. This is a growing industry due to increased regulation on the State level, including laws that require testing of any suspect material which usually leads to its removal. Only a fraction of residential and commercial building has had the mitigation that is needed.

Hazardous materials are still being imported into the United States each year. The countries mining and exporting these materials have different regulations than the United States and the US does not have the people power to test the materials when they enter US ports. Even recently built homes or offices may contain these materials.

The sales price is 950K. Here are the reasons why this is a great price: The sales price is only 2.15 times its trailing 12 months properly adjusted earnings which is low for a company with high growth potential, a steady backlog, low capitalization cost to grow because of the small tools and inexpensive materials they need like plastic membrane/plastic bags, and because the new owner can add other services like Radon(The hazardous gases that Uranium give off under foundations) mediation which is becoming a big deal now that Colorado is mandating some testing. The uranium band runs from Texas up through Colorado all the way to Oregon. This will be a huge business as more states increasingly initiate various testing and protections from Radon.