Know exactly what to verify before acquiring a CCTV inspection, CIPP lining, or sewer repair company in the $1M–$5M revenue range.
Find Sewer Inspection & Repair Acquisition TargetsAcquiring a sewer inspection and repair business requires scrutiny across three high-stakes areas: capital-intensive equipment fleets, transferable municipal contracts, and a licensed technician workforce. Buyers who skip these areas risk inheriting deferred capex, non-transferable contracts, or a workforce dependent on the exiting owner.
Validate EBITDA, revenue mix, and customer concentration before advancing to legal or operational review.
Request 3 years of tax returns and P&Ls. Identify owner compensation, personal vehicle use, and non-recurring expenses. Confirm adjusted EBITDA supports the proposed valuation multiple of 3.5–6x.
Break down revenue between CCTV inspection, CIPP lining, spot repair, hydro-jetting, and emergency response. Recurring inspection contracts are valued higher than one-time repair jobs.
Flag any single municipal or commercial client exceeding 30% of revenue. Request a 3-year client-level revenue report to identify dependency on one or two accounts.
Verify the condition of capital assets, contract transferability, and regulatory standing before issuing an LOI.
Obtain a full inventory of CCTV trucks, jetting units, CIPP lining equipment, and robotic cutters. Review maintenance logs and assess near-term replacement costs that could compress post-acquisition margins.
Confirm all master service agreements include transferability language. Check renewal dates, cancellation clauses, and whether contracts require rebidding upon change of ownership.
Request EPA compliance records, any prior violations, spill reports, and active regulatory investigations. Environmental liability can survive a business sale and expose buyers to cleanup costs.
Evaluate technician credentials, key-person dependency, and the seller's transition plan.
Obtain copies of all NASSCO PACP/MACP certifications, plumbing licenses, and insurance certificates. Assess cost and timeline to replace any certified employee who might exit post-closing.
Determine whether the owner serves as primary estimator, project manager, or sole licensed operator. A heavy owner-dependent operation significantly increases transition risk and may require a longer earnout period.
Review work order systems, inspection reporting software, safety protocols, and SOPs. Documented processes reduce reliance on tribal knowledge and support a smoother ownership transition.
Verify the Sewer Inspection & Repair acquisition qualifies for SBA financing, the purchase price is supportable by the verified cash flow, and the deal structure protects the buyer's downside.
Confirm the Sewer Inspection & Repair meets SBA 7(a) eligibility requirements: the business is for-profit, U.S.-based, within SBA size standards, and the buyer meets personal financial requirements. Some industries have specific SBA restrictions — verify before LOI.
Model verified normalized EBITDA against projected SBA loan payments at current rates. A $1M SBA 7(a) loan at 10.5% over 10 years costs approximately $13,000/month. The Sewer Inspection & Repair must generate at least 1.25x debt service coverage after a market-rate manager salary to pass underwriting.
Confirm the seller note is properly subordinated to the SBA loan and goes on 24-month standby as required by SBA rules. If an earnout is included, define exact measurement metrics, time period, and dispute resolution process before signing the purchase agreement.
Before signing a Letter of Intent, request these documents from the seller. Missing or incomplete items are a red flag — not a reason to proceed without them.
Expect 3.5x–6x adjusted EBITDA depending on contract quality, equipment condition, and revenue mix. Businesses with long-term municipal MSAs and NASSCO-certified teams command multiples at the higher end.
Not automatically. Many municipal contracts require consent to assignment or rebidding upon ownership change. Always review contract language and consult with the municipality before closing to avoid losing revenue post-acquisition.
Yes. SBA 7(a) loans are commonly used in this sector with 10–15% buyer equity down. The equipment-heavy balance sheet and verified municipal revenue typically support SBA underwriting when financials are clean.
Underestimating deferred capex. Aging CCTV trucks or jetting units not flagged pre-close can require $200K–$500K in replacement costs within 12 months, severely impacting projected post-acquisition returns.
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