Would You Buy This $1M Painting Business?

Welcome to The Main Street Minute, your shortcut to Main Street dealmaking.

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This week: We break down a buyer’s $1.3M legacy painting deal with strong margins, BIG transition questions, and 6 key items to focus on. TONS of lessons below…

(By the way: If you’re looking to buy or sell a business, BizScout is rapidly becoming the best tool for you.)

NUMBERS

So, What’s the Deal on the Table

David recently signed an LOI on a more than 40-year-old commercial painting business doing $1.1M in revenue and $530K in EBITDA.

The business is small but steady:

• 5 employees — 2 foremen, 2 painters, 1 office manager
• 90% commercial work, 10% residential
• An owner who claims to work ~35 hours/week bidding jobs and overseeing crews
• Asking price: $1.5M
• LOI accepted at $1.3M, using 90% SBA, 10% cash

No sales team. No marketing engine. Just decades of local relationships and solid margins.

But this isn’t a solo play. David is coming in with 2 partners, including one who already owns a painting business.

David brought the deal to the community with big questions:

• What kind of financial review is necessary for a business this size?
• Is it possible to reintroduce a seller financing structure after the LOI is signed?
• What are the red flags that should make him walk away?

What followed was a masterclass in deal diagnostics.

Veteran buyers lit up with strategies that could save David money long term and years of pain: Employee retention, vision-casting, validating financials, proposing better structuring, and even why to consider pre-negotiating a breakup with partners early on.

Let’s get into it.

KEY IDEAS

6 Things The Buyer Should Focus on Most

With an LOI signed and diligence underway, David brought this deal to the community for a live breakdown. The advice that followed was tactical, no-fluff, and grounded in real operator experience.

Here’s what they told him to pay attention to:

1. Don’t Skimp on Financial Diligence

David asked whether conducting a formal financial review was necessary for this deal size. The deal coaches were clear: maybe not a “full-blown QofE” costing tens of thousands of dollars, but a review is required.

At a minimum, he was told to have his accountant for the deal go through and validate the reported revenues, bank statements, and tax returns.

2. Customer Transitions are Key

This business is built on long-standing commercial relationships rather than formal contracts. The recommendation: make the handoff personal and intentional.

3. Seller Financing Can Be Reintroduced

The seller initially declined a 5% seller financing structure. But members shared ways to reintroduce the conversation post-LOI.

David was told to plant seeds, reference the tax angle, and let the seller’s CPA help carry the ball.

4. The 3 Partners Need 1 Solid Agreement

David is acquiring the business alongside 2 partners, one of whom owns a painting company. That could be a strength, but only if structure and roles are crystal clear.

The group emphasized memorializing everything — from work responsibilities to exit mechanics — before any real issues arise. “If someone decides they want to go cruise around Mykonos for a year, they can. But their pay changes.”

5. Plan for a Commercial Slowdown

With 90% of revenue tied to commercial jobs, one member raised the question: what happens if the market softens?

David shared that revenue dipped during COVID but that the business still held up.

The key: model the downside. Confirm your structure still holds if top-line drops 30%+.

6. The Crew is the Business

Every coach emphasized the same thing: without the team, this business isn’t worth much.

The consensus: David’s deal has strong fundamentals. But execution — not just the numbers — will make it or break it.

INDUSTRY

What You Need to Know

Painting and wall covering contractors operate in a growing, highly fragmented market:

• ~38,000 businesses in the U.S.
• Average revenue: $899K
• Average headcount: 6 employees

This business beats those averages, and for an industry closely tied to economic cycles, interest rates, and regional development patterns, data shows demand has remained steady.

Still, a downturn in commercial real estate could quickly impact this business as 90% of revenue comes from that sector.

According to Vertical IQ, the median EBITDA multiple for painting and wall covering contractors is 2.94x.

David’s deal — $1.3M on $530K in EBITDA — comes in at roughly 2.5x. Slightly below market on a strict multiple basis.

While the business doesn’t come with many formal contracts, marketing systems, or a sales engine, it does have:

• A strong EBITDA margin
• A long operating history
• An existing, experienced team

The coaches didn’t call it overpriced. But they were clear: at this level, every detail matters. Key questions still need to be answered:

• Is the EBITDA accurate and sustainable?
• Can the crew be retained post-transition?
• Will customer relationships carry over smoothly?
• Is the partnership and financing structure dialed in?

The opportunity ahead may be real, but so is the work required to unlock it.

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The information contained here may not be typical and does not guarantee returns. Background, education, effort, and application will affect your experience. Your results will likely vary.