Auto Repair & Service Shops, Other Automotive & Boat, Auto, Boat & Aircraft
Active
Add-On: IL Based / Inspection & Fleet Repair / $783K TTM Adj. EBITDA
Illinois, United States
Asking Price-
Revenue$2,770,000
EBITDA$783,000
Cash Flow$783,000
Description
Add-On Opportunity: Illinois Based / Propane Cargo Tank Inspection & Fleet Repair / $783K TTM Adj. EBITDA / 28.2% Margin / Federally Required Inspections
COMPANY OVERVIEW
The Company is an Illinois-based commercial fleet-services provider specializing in federally required cargo-tank inspections, testing, and repair services for propane delivery vehicles. Its services include annual external inspections and leakage tests, periodic internal inspections and pressure tests, pump rebuilds, piping and valve repair, welding, safety-system diagnostics, parts supply, and routine commercial fleet maintenance.
Federal regulations require propane cargo tanks to complete annual inspections and leakage tests, along with internal inspections and pressure tests every five or ten years, depending on the tank. These requirements create recurring customer contact and frequently generate follow-on repair and parts revenue when deficiencies are identified.
KEY KPIs
- $2.77 million of TTM February 2026 revenue
- Approximately $783,000 of TTM adjusted EBITDA
- 28.2% TTM adjusted EBITDA margin
- $2.89 million of FY2025 revenue
- Approximately $864,000 of FY2025 adjusted EBITDA
- 29.9% FY2025 adjusted EBITDA margin
- 49.1% TTM gross margin
- Repair services and parts represented 95.9% of FY2025 revenue
- Parts represented 46.6% of FY2025 revenue and generated a 42.0% gross margin
- Seven full-time employees plus the owner
- Four of seven employees have at least five years of tenure
- Eight service vehicles with an estimated fair-market value of $417,000
- Illinois ranked fourth nationally in propane consumption during 2024
ADD-ON RATIONALE
The Company represents a compelling tuck-in for an established fleet-services, truck-repair, tank-services, or commercial-vehicle platform seeking to add specialized propane and hazardous-material cargo-tank capabilities.
An acquirer would gain a recurring, federally driven inspection practice, an experienced technical team, established propane-distributor relationships, and a high-margin parts and repair operation. The Company would allow a larger platform to offer inspection, repair, and retesting under one roof while reducing vehicle downtime for fleet customers.
Potential integration benefits include:
- Introducing cargo-tank inspection and propane delivery-system repair across the acquirer’s existing customer base
- Cross-selling chassis, engine, and routine fleet maintenance to the Company’s propane-distributor customers
- Applying platform purchasing power to parts, which represent nearly half of revenue
- Leveraging centralized accounting, scheduling, human resources, and administrative infrastructure
- Recruiting and developing additional qualified inspectors and technicians
- Improving utilization of the Company’s existing facility, fleet, and technical workforce
Revenue declined modestly from $2.89 million in FY2025 to $2.77 million for the TTM period, while adjusted EBITDA decreased from approximately $864,000 to $783,000. Despite the moderation, the Company maintained a strong 28.2% adjusted EBITDA margin. Historical results also include marine-services activity that has since moved outside the transaction perimeter and is not separately identifiable in the general ledger, representing an important diligence and normalization item.
The principal currently performs or witnesses required cargo-tank inspections. Adjusted EBITDA includes a $125,000 replacement cost for the principal’s operating role, and a buyer should establish qualified inspection continuity as part of the integration plan. An existing fleet-services platform should be particularly well positioned to professionalize this function, expand technician capacity, and integrate the operation without requiring it to serve as a standalone platform.
Business listed by
The Advisory IB