In This Issue: 

• Who’s On Your Team?: Outlining the right advisors to have in your camp when buying a business

• What We’re Watching: Netflix Wins by Walking Away, Japanese Homebuilders Eyeing U.S. Market and Data Center Buildout Reaches an Inflection Point

• Deal of the Week: We found a cash flowing Pressure Washing Business in Florida ($604k of Cash Flow). Click HERE for the listing (Deal Review Below)

• Mark Your Calendars: Live Deal Sourcing on YouTube Live for Subscribers on Saturday at 1PM EST (sub here)

The Ultimate Deal Team When Buying a Business

One of the fastest ways to blow up a deal—or worse, close a bad one—is trying to do everything yourself.

First-time buyers think hiring advisors is expensive. It is. But not hiring them costs more.

The mistake:

You download an LOI template from LegalZoom. Run diligence using the seller's P&L. Trust your gut on equipment condition because "it looks fine."

Then six months post-close, you discover:

• The LLC structure exposes you personally

• EBITDA was overstated by 40%

• The HVAC system needs $80K in replacement next year

That's not bad luck. That's bad process.

So here’s three advisors worth their fee:

1. Legal Counsel

You cannot close a deal with ChatGPT and downloaded templates.

Structure matters. Entity formation matters. Reps and warranties matter.

Every deal is bespoke:

• Is this an asset purchase or equity purchase?

• What liabilities transfer?

• How do you protect against undisclosed claims?

• What's the escrow and indemnification structure?

Find someone who's done this hundreds of times. Not Gemini.

2. Quality of Earnings (QoE)

You won't know the true cash flow profile unless you review every bank statement and receipt.

You probably don't have time for that.

QoE providers specialize in:

• Proof of cash assessments

• Add-back validation

• Revenue quality and customer concentration

• Working capital normalization

They find the expenses the seller "forgot" to mention and the one-time revenue spike that won't repeat.

3. Operational Diligence

Unless you've worked in the niche for 30 years, you don't know:

• How to benchmark the KPIs you're seeing

• The true useful life of equipment

• Deferred CapEx hiding in "maintenance"

Hire an expert for a day. Walk the floor. Ask hard questions:

• Is this fleet actually worth book value?

• What's the replacement cycle on this machinery?

• Are labor costs in line with market?

One day of their time can save you six figures in post-close surprises.

The math:

Advisors might cost $25K–$50K on a $1M deal.

Sounds steep. Until you realize they're preventing:

• Structural mistakes that cost you the business

• EBITDA overstatements that cost you equity

• CapEx surprises that destroy Year 1 cash flow

Bottom line:

Institutional buyers don't skip diligence because they're cautious. They skip it because they can afford mistakes.

You can't.

Build the right team. Pay for expertise. Close with confidence.

Need referrals on specific providers? Reply or DM—I'll share who I've used.

WHAT’S HAPPENING IN THE MARKETS?

• Netflix Walks Away From Warner Bros. Discovery Deal

  Netflix declined to match Paramount's revised $31-per-share bid for WBD assets. Paramount agreed to pay the $2.8B breakup fee owed to Netflix. Netflix stock spiked; WBD fell.

  Why it matters: Netflix chose discipline over empire-building—rare in streaming consolidation. Paramount overpaid for legacy IP and debt while Netflix avoids balance sheet risk. This validates content-as-commodity: license selectively, don't buy studios. Paramount owns melting linear TV assets; Netflix's restraint is the bullish signal.

• Japanese Homebuilders Capture 6% of U.S. Market

  Japanese companies bought two more U.S. homebuilders in February, now owning 33 builders with nearly 6% market share. Daiwa House and Sekisui lead acquisitions; their stocks outperform the Nikkei.

  Why it matters: Yen-carry arbitrage meets U.S. housing scarcity. Japanese builders deploy cheap capital into supply-constrained markets where domestic builders can't scale. With mortgage lock-in killing resales, new construction is the only liquid inventory. They're solving America's housing crisis with superior balance sheets.

• Data Center Demand Hits Inflection Point as Texas Overtakes Virginia

  Texas unseats Virginia as the world's largest data center market. Vacancies remain at 1% for the second year. Hyperscaler AI demand surges while development constraints limit supply.

  Why it matters: Power availability, not capital, limits buildout. Texas wins on grid capacity and energy costs. At 1% vacancy, pricing power shifts to landlords. Hyperscalers compete for scarce capacity at premium rates. Own Texas power infrastructure, data center REITs, and cooling equipment suppliers.

DEAL OF THE WEEK

Palm Beach County Pressure Washing Business
Price: $1.55M | SDE: $604K | Multiple: 2.6×

Investment Summary

Commercial pressure washing operation serving Palm Beach County since 2010. Revenue of $1.77M with 34% margins. 14-person team servicing multi-year contracts with government agencies, HOAs, multi-family properties, and commercial clients. $275K in equipment included.

This is facilities maintenance infrastructure sold into property management budgets. Buildings don't clean themselves, and Florida's humidity makes pressure washing non-negotiable.

Investment Thesis

Commercial pressure washing in Florida isn't discretionary—it's preventative maintenance that protects capital assets. Mold, mildew, and algae grow aggressively in subtropical climates. HOAs, property managers, and government facilities budget for this annually because deferred maintenance compounds into costly repairs.

The business focuses on large-scale commercial work that smaller operators can't handle. Equipment requirements, insurance bonding, and crew coordination eliminate most local competition. Multi-year contracts provide revenue visibility and insulation from economic cycles.

At 2.6× SDE with $275K in equipment and established contracts, you're buying operational scale that takes years to build. Palm Beach County's affluent demographics and continuous development create persistent demand.

Critical Diligence

• Contract concentration: What % from top 5 clients? Multi-year government and HOA contracts are sticky, but losing one reshapes the business.

• Franchise obligations: Ongoing royalty fees? Marketing contributions? These directly impact net margins and growth optionality.

• Equipment condition: $275K in FF&E—what's the replacement schedule? Commercial pressure washing equipment degrades quickly.

• Margin verification: 34% SDE margin is exceptionally high for commercial services. Confirm owner isn't drawing below-market salary or deferring maintenance to inflate cash flow.

• Residential expansion: Why hasn't the seller pursued residential if it's such an obvious opportunity? Operational choice or unit economics don't work?

Bottom Line

Recession-resistant facilities maintenance with multi-year contract visibility in high-growth Florida market. The residential expansion opportunity is real: wealthy Palm Beach homeowners pay premium rates for exterior maintenance. Add targeted residential marketing, formalize property management partnerships, expand into roof cleaning and sealing. At 2.6× on sticky contracts with untapped upside, this is infrastructure income with a growth kicker.

Listing is still available here.

This newsletter is for informational purposes only and does not constitute investment advice. The content is based on publicly available information, and the author makes no representations about its accuracy or completeness. Readers should conduct their own research before making any investment decisions.