DEAL #3394LS — CONCRETE RESURFACING

St. Louis Resurfacing, Inc.

Acquisition Analysis — St. Charles / Wentzville, MO (St. Louis Metro)

PROCEED WITH CAUTION

36-year-old pebblestone epoxy pioneer with zero debt, $89K cash, and strong brand equity — but revenue is declining 17% YoY and the P&L is clouded by personal owner expenses. Significant marketing upside if acquired at the right price.

Company Snapshot

Entity
St. Louis Resurfacing, Inc.
S-Corporation
Founded
1990
36 years in business
Location
St. Charles, MO
2nd address: Wentzville, MO
Specialty
Pebblestone Epoxy
Decorative concrete resurfacing
Owner
Sean
Family-owned & operated
BBB Rating
A+
Accredited since 1991 (35 years)
Website
stlresurfacing.com
WordPress/Elementor build
Phone
(314) 576-9220
DOT #2164558
Key Positioning: "Pioneer Leader in Midwest Decorative Resurfacing"

St. Louis Resurfacing positions itself as the first mover in pebblestone epoxy flooring in the Midwest. With 36 years of operation and BBB A+ accreditation since 1991, this is one of the longest-tenured players in the St. Louis decorative concrete market. The business covers driveways, patios, pool decks, garage floors, and commercial surfaces. Revenue derives from both new installations and repair/reseal work.

Profit & Loss — FY 2025

Line Item Amount % of Revenue Assessment
200 · Income (Installs + Service) $309,442.00 98.6% Core revenue
201 · Repair and Reseals $5,550.00 1.8% Down 51% from 2024
210 · Refunds -$1,000.00 -0.3% New in 2025
Total Income $313,992.00 100.0% Down 17.2% YoY
215 · Materials $83,954.01 26.7% Primary COGS — reasonable
310 · Wages $97,096.15 30.9% Includes owner salary
235 · Auto Expense $32,259.14 10.3% Includes personal use*
225 · Advertising $25,976.57 8.3% Includes owner personal + health ins*
265 · Office Expense $18,419.06 5.9% High — investigate
253 · Insurance — Medical/Shareholder $16,510.56 5.3% Owner health insurance (add-back)
285 · Taxes Payroll $8,725.50 2.8% Standard
290 · Telephone $7,315.79 2.3% Includes owner phones*
220 · Accounting $5,774.48 1.8% Up 57% YoY
250 · Entertainment $5,252.49 1.7% Includes "Cindy's Health INS"*
280 · Supplies $4,506.67 1.4% Standard
254 · Insurance (Business) $3,232.73 1.0% Down 47% (good)
240 · Bank Charges $1,800.79 0.6% Standard
300 · Travel $1,206.43 0.4% Minimal
261 · Freight $1,183.20 0.4% Down 62%
Other (Misc, Postage, Selling, Tax, Interest) $1,779.95 0.6% Minimal
Total Expense $314,993.52 100.3% Exceeds revenue
Net Income (Reported) -$1,001.52 -0.3% Operating loss
* Handwritten Notes on P&L (Owner's Annotations)

The owner marked several expense lines as containing personal items: Advertising includes "Cindy's Health INS" and personal charges. Entertainment includes "Cindy's Health INS." Telephone includes "owners phones." Auto includes personal vehicle use. These personal expenses inflated total expenses and depressed net income. See SDE section for full add-back reconstruction.

Receivables Not Reflected in Reported Income

Owner's handwritten notes indicate $13,877 in completed jobs not yet collected: $7,528 in cash deposits not yet deposited + $6,619.31 in accounts receivable. Per the owner: "Jobs DONE that still need to pay, will pay in JANUARY. This amount can be added to income." Adjusted net income: -$1,001.52 + $13,877 = $12,875.48. Additionally, the owner notes "AFTER TAX returns are done the Income/Profit will go up when [expenses are] reflected for ENT EXP."

P&L Year-over-Year — 2025 vs 2024

Revenue Change
-17.2%
$314K vs $379K
Expense Change
-1.9%
$315K vs $321K
Net Income Change
-102%
-$1K vs +$58K
Primary Driver
Install Decline
"Down mostly in SALES INSTALL"
Line Item 2025 2024 $ Change % Change
200 · Income $309,442 $353,957 -$44,515 -12.6%
201 · Repair & Reseals $5,550 $11,400 -$5,850 -51.3%
340 · Miscellaneous Income $0 $13,954 -$13,954 -100%
Total Income $313,992 $379,311 -$65,319 -17.2%
215 · Materials $83,954 $80,359 +$3,595 +4.5%
310 · Wages $97,096 $111,414 -$14,318 -12.9%
235 · Auto Expense $32,259 $32,149 +$110 +0.3%
225 · Advertising $25,977 $18,915 +$7,061 +37.3%
265 · Office Expense $18,419 $16,974 +$1,445 +8.5%
253 · Insurance — Medical $16,511 $14,143 +$2,368 +16.7%
Total Expense $314,994 $320,932 -$5,938 -1.9%
Net Income -$1,002 $58,379 -$59,380 -101.7%
Revenue Decline Analysis

Revenue fell $65K (-17.2%), with the owner attributing the drop to a decline in installation ("SALES INSTALL") work. Installation income dropped $44.5K (-12.6%), repair/reseal dropped $5.9K (-51.3%), and miscellaneous income of $14K from 2024 did not recur. Importantly, expenses only decreased $5.9K (-1.9%) — the business did not cut costs proportionally to the revenue decline, which swung net income from +$58K to -$1K. Material costs actually increased 4.5% despite lower revenue, suggesting either price inflation or waste.

Balance Sheet — as of Dec 31, 2025

Cash on Hand
$89,641
Very strong cash position
Total Fixed Assets
$16,393
Mostly depreciated
Total Debt
$0
ZERO liabilities
Total Equity
$106,034
100% equity-financed
Category Item Amount
Current Assets Cash — Checking $89,640.60
Fixed Assets 119 · Fixed Assets (fully depreciated) $0.00
124 · Auto (net of $93.9K depreciation) $3,554.04
127 · Leasehold Improvements (net) $12,839.05
Total Fixed Assets $16,393.09
TOTAL ASSETS $106,033.69
TOTAL LIABILITIES $0.00
Equity Common Stock $200.00
Retained Earnings $48,456.41
*Retained Earnings (prior) $58,378.80
Net Income (2025) -$1,001.52
TOTAL EQUITY $106,033.69
Zero Debt — Exceptionally Clean Balance Sheet

This business has zero liabilities. No loans, no credit lines, no accounts payable on the books. The entire $106K asset base is equity-financed. The $89.6K in cash represents 28.5% of annual revenue — a very strong liquidity position. Combined with no debt service, this means 100% of operating cash flow is available for operations or distribution. This is uncommon and highly favorable for an acquisition.

Key Performance Indicators

2025 Revenue
$313,992
Down 17.2% from $379K
Net Margin (Reported)
-0.3%
-$1,002 net loss
Materials % Revenue
26.7%
Industry: 25-40%
Labor % Revenue
30.9%
Includes owner salary
Debt-to-Equity
0.00
Zero leverage
Cash as % Revenue
28.5%
$89.6K on hand

2024 Performance (Prior Year)

2024 Revenue
$379,311
Stronger year
2024 Net Income
$58,379
15.4% net margin
2024 Total Expenses
$320,932
84.6% of revenue
2024 Wages
$111,414
29.4% of revenue

SDE Calculation & Owner Add-Backs

The P&L contains significant owner personal expenses that must be added back to arrive at true Seller's Discretionary Earnings. The owner's handwritten annotations identify specific personal items within business expense lines.

2025 SDE Reconstruction

Component Amount Basis
Net Income (Reported) -$1,001.52 P&L bottom line
Owner Salary (est. from Wages) +$65,000 S-Corp reasonable comp; wages dropped $14K with lower revenue
Medical-Shareholder Insurance +$16,510.56 Owner health insurance (S-Corp perk)
Entertainment (Personal) +$5,252.49 Owner notes: "Cindy's Health INS"
Advertising (Personal Portion) +$5,000 Owner notes: personal + "Cindy's Health INS" + "village"
Telephone (Personal Portion) +$2,500 Owner notes: "owners phones Also"
Auto (Personal Portion) +$5,000 Conservative — some personal auto in $32K line
Estimated 2025 SDE $98,262 31.3% of revenue
+ Uncollected Receivables +$13,877 Jobs done, payment expected Jan 2026
Adjusted 2025 SDE $112,139 35.7% of revenue

2024 SDE Reconstruction (Estimated)

Component Amount Basis
Net Income (2024) $58,378.80 P&L comparison
Owner Salary (est.) +$70,000 Higher wage year ($111K total)
Medical-Shareholder Insurance +$14,142.81 Per P&L comparison
Personal Expenses (combined est.) +$12,500 Entertainment + Ad + Phone + Auto personal
Depreciation +$2,551.00 Non-cash — recorded in 2024, not 2025
Estimated 2024 SDE $157,573 41.5% of revenue
2-Year Weighted Avg SDE
$127,918
(2025 adjusted + 2024) / 2
SDE Trend
-28.9%
2025 vs 2024 decline
Due Diligence Required on Add-Backs

Owner salary of $65K is estimated — the actual split between owner and employee wages within the $97K Wages line must be confirmed. The personal expense add-backs are based on the owner's own handwritten annotations, but exact dollar amounts for each personal vs. business split require documentation. The $5K advertising add-back is conservative given the owner flagged multiple personal items in that line. A buyer should request a detailed breakout of every flagged expense category.

Industry Benchmarks — Concrete Resurfacing

Comparison against published concrete contractor and specialty flooring industry standards from IBISWorld, BizBuySell, Peak Business Valuation, and trade associations.

Metric Industry Range St. Louis Resurfacing Position
Materials as % Revenue 25% – 40% 26.7% Efficient — low end
Labor as % Revenue 20% – 35% 30.9% Mid-high (includes owner)
Net Margin (Specialty Concrete) 6% – 15% -0.3% (2025) Below range (loss year)
Net Margin (Prior Year) 6% – 15% 15.4% (2024) Top of range
SDE as % Revenue 25% – 40% 31.3% – 35.7% Within range
SDE Multiple (Concrete Contractors) 2.23x – 3.03x Applied in Valuation
SDE Multiple (Specialty Contractors) 2.84x – 3.28x Premium for niche expertise
Revenue Multiple (Concrete) 0.38x – 0.73x Applied in Valuation
EBITDA Multiple 3.40x – 3.78x Applied in Valuation
Efficient Material Usage

Materials at 26.7% of revenue is near the low end of the 25-40% industry range, indicating efficient procurement and minimal waste. This is consistent with a mature operation that has optimized its supply chain over 36 years. The 2024 year showed a healthy 15.4% net margin at the top of the industry range, confirming that when revenue is at normalized levels, this business performs well financially.

Valuation Range

Estimated Fair Value Range

Method 1 — SDE Multiple (2.0x – 2.75x on Weighted Avg SDE $127,918)
Low
$256K
Mid
$304K
High
$352K
Discounted from the 2.23-3.03x industry range due to declining revenue trend and single-year loss. A stabilized business at 2024 performance levels would justify a higher multiple.
Method 2 — Revenue Multiple (0.38x – 0.73x on $314K Revenue)
Low
$119K
Mid
$174K
High
$229K
Method 3 — Net Asset Value
Book Value
$106K
Cash ($89.6K) + Fixed Assets ($16.4K) - Liabilities ($0) = $106K. This is the floor — what you'd get liquidating assets. Cash may or may not be included in the sale.
Composite Fair Value Estimate
$225K
$350K
Weighting SDE method most heavily. The lower bound reflects the revenue decline risk and need for personal expense verification. The upper bound assumes add-backs are validated and revenue stabilizes. If cash ($89.6K) is included in the sale, add that to the range. 36 years of brand equity and BBB A+ add intangible value not captured in the financials.
Asking Price Unknown

The broker listing (Saint Louis Group, Deal #3394LS) did not include an asking price in the financial package. Before negotiating, confirm the seller's expectations. Given the revenue decline and loss year, a buyer has leverage to negotiate toward the lower end of the range. If the seller anchors above $350K, the declining trend and unverified add-backs provide strong counter-arguments.

Equipment Inventory

Complete equipment list as of January 17, 2026. The fleet and tools are consistent with a full-service concrete resurfacing operation. Key concern: the two primary vehicles are 20+ years old with 170K-203K miles.

Vehicles & Trailer

  • 2006 Ford 450 Box Truck — 203,197 mi
  • 2002 Ford 250 Van — 170,000 mi
  • 2009 Doolittle Trailer

Heavy Equipment

  • Caterpillar Forklift GC25
  • Generac Generator RS5500
  • Power Washer Generac 3100PSI (x2)
  • Propane Tanks (x2)

Mixing Equipment

  • Mixers (x3) — 1 needs a small part
  • Mixer Top & Bottom Drum Set
  • Mixer Motor

Power Tools

  • Bosch Hammer Drill 11316 EVS (x2)
  • Bosch Bulldog Extreme Hammer Drill
  • DeWalt Grinder DW840 7" (x3) — 2021
  • Craftsman Angle Grinder 4.5" (x2) — 2021
  • DeWalt Impact Drill 20V — 2021
  • Impact Drill Porter Cable
  • Circular Saw DeWalt + Skil

Finishing Tools

  • Trowel Marshelltown 18"x4" (x1)
  • Trowel 20"x4" (x1)
  • Trowel 20"x4" Goldblatt (x1)
  • Trowel 18"x4" Goldblatt (x1)
  • Trowel small Marshelltown (x2)
  • Corona Sidewalk Edger
  • Caulk Guns (x3)

General & Site Equipment

  • Husqvarna 125 BVX Blowers (x3)
  • Heater Wands, Socket/Wrench Sets
  • Chains, Kobalt Shovels (x5), Wheelbarrows (x2)
  • Shop Vacs (x2), Floor Scraper, Brooms
  • Extension Cords, Tarps (x3), Tie Downs (x5)
  • Home Show Display Booth
  • Freezer Thompson, Sawhorses
  • Big Rolling Metal Toolbox
Fleet Age Is a Risk

The 2006 Ford 450 Box Truck (203K miles) and 2002 Ford 250 Van (170K miles) are the primary work vehicles. At 20-24 years old, both are well past typical service life. A buyer should budget $40K-$80K for fleet replacement within 1-2 years of acquisition. The 2009 trailer is in better shape. Most power tools were purchased in 2021, so they have useful life remaining.

Online Presence Scorecard

Comprehensive audit of St. Louis Resurfacing's digital footprint across all major platforms. Overall Score: 4.0 / 10. The website is professional but all other channels are weak or absent.

7
Website
5
Google Business
6
Yelp
8
BBB
6
Angi
3
Facebook
0
Instagram
0
LinkedIn
2
HomeAdvisor
3
SEO/Content

Website Analysis — stlresurfacing.com

Score: 7/10. Professional WordPress/Elementor build with modern design, gallery pages, video testimonials (Vimeo), and a blue/white color scheme. Responsive layout. Missing: pricing information, blog/content strategy, live chat, strong CTAs, and landing pages for specific services. No FAQ schema or location pages for service areas.

Yelp — Strong Visual Documentation

Score: 6/10. Listed at yelp.com/biz/st-louis-resurfacing-st-charles with 244 photos uploaded. This is a significant asset — proves the quality of work visually. The photo library alone is marketing gold for social media and website content.

BBB — Outstanding

Score: 8/10. A+ rating. Accredited since August 5, 1991 — that's 35 consecutive years of BBB accreditation. This is an exceptional trust signal and a major differentiator versus newer competitors and franchises.

Social Media & Gap Analysis

Instagram: 0/10. Zero presence. For a decorative concrete business with 244 Yelp photos, this is the single biggest marketing miss. Before/after shots of pebblestone epoxy installations are perfect Instagram content. LinkedIn: 0/10. No company page. Missing the commercial/B2B lead generation channel entirely. Facebook: 3/10. Claimed on website but minimal activity and hard to find via search.

244 Yelp Photos = Instant Content Library

A buyer inherits 244 professional-quality project photos on Yelp. These can immediately be repurposed for Instagram, Facebook, Google Business posts, and website gallery expansion. This is months of content ready to deploy on day one.

St. Louis Concrete Resurfacing — Competitive Landscape

The St. Louis metro has 10-15+ active concrete resurfacing and epoxy flooring companies. The market is fragmented with mostly family-owned locals and several newer national franchise entrants.

Company Est. Type Google Notable
Decorative Concrete Resurfacing 1983 Local 5.0 39+ years; 100+ national awards; SUNDEK certified; "Best Concrete Contractor" STL Magazine
Epoxy Stone Inc. 1990 Local 4.4 ~100 reviews; 2M+ sq ft resurfaced; 20-year garage warranty
StoneCraft Epoxy Resurfacing ~2006 Local 5.0 "The Concrete Doctor"; A+ BBB; STL + Columbia + IL coverage
GatorGuard of St. Louis ~2020 National 4.9 Multi-state franchise; lifetime warranty; premium pricing; aggressive marketing
Garage Force (STL West) Franchise National Mixed Polyaspartic focus; franchise model; some quality complaints
Epoxy Pro St. Louis ~2000 Local N/A 25+ years; strong website SEO
Epoxy Flooring St. Louis N/A Local N/A Exact-match domain SEO play (epoxyfloorstlouis.com)
Franchise Invasion Underway

GatorGuard and Garage Force are national franchise brands that have entered the St. Louis market since ~2020. They bring significant marketing budgets, lifetime warranty programs, and polyaspartic coating systems that cure in one day. St. Louis Resurfacing's pebblestone epoxy niche is differentiated, but the franchises are capturing the broader "garage floor coating" keyword space and consumer mindshare. A buyer should evaluate whether to expand into polyaspartic coatings to compete head-on or double down on the pebblestone epoxy niche.

Concrete Resurfacing Industry Trends (2025–2026)

US Decorative Concrete (2024)
$4.57B
5.9% CAGR to $6.83B by 2030
US Floor Coatings Market
$1.8B
7.7% CAGR — strong growth
Epoxy Market Share
42%
Largest segment in floor coatings
Global Resurfacer Market
$4.4B
5.0% CAGR to $7.0B by 2033

Key Trends

Trend Data Point Relevance
Polyaspartic/Polyurea Systems 10x durability vs. traditional epoxy; UV stable; 1-day cure Competitive threat — must evaluate product line expansion
Decorative Concrete Growth Stamped concrete 40% of revenue; floor installs at 6% CAGR Core market growing — tailwind for pebblestone epoxy
Home Renovation Tailwinds Median home age 41 years; post-pandemic improvement spend continuing Aging homes drive resurfacing demand
Labor Shortage 500K unfilled construction positions industry-wide Barrier to entry; pricing power for established operators
Tariff Risk (2025) Import tariffs creating epoxy resin price volatility Material cost uncertainty — margin pressure
Midwest Construction Peak Nonresidential peaks at $145.5B in 2025, moderates to $126.9B in 2026 Commercial demand may soften

SWOT Analysis

Strengths

  • 36 years in business — exceptional brand longevity
  • BBB A+ accredited since 1991 (35 years) — rare trust signal
  • "Pioneer leader" in Midwest pebblestone epoxy — first-mover advantage
  • Zero debt, $89.6K cash — exceptionally clean balance sheet
  • Strong material efficiency (26.7% of revenue vs. 25-40% industry)
  • 244 professional project photos on Yelp — instant content library
  • Established customer base and repeat business (repair/reseal revenue)
  • DOT registered — full compliance for material transport

Weaknesses

  • Revenue declining 17.2% YoY — installation work dropping
  • 2025 operating loss (-$1,002 net) after $58K profit in 2024
  • Owner personal expenses heavily mixed into P&L — true profitability unclear
  • Aging fleet — 20+ year old vehicles with 170K-203K miles
  • No Instagram or LinkedIn — massive digital gaps for a visual business
  • Pebblestone epoxy is a narrowing niche vs. polyaspartic trends
  • Owner-dependent (Sean is referenced personally in reviews)
  • Fixed assets nearly fully depreciated ($16K net on books)

Opportunities

  • Instagram launch with 244 existing photos = immediate engagement
  • Google review acquisition strategy — 36 years of customers to ask
  • Product line expansion into polyaspartic/polyurea coatings
  • Commercial market penetration (currently appears residential-heavy)
  • SEO/content marketing — blog, location pages, FAQ schema
  • Home show marketing already has a display booth asset
  • Repair/reseal recurring revenue model (only $5.5K in 2025 — underutilized)
  • Google Ads for high-intent local keywords ($3-10 CPC range)

Threats

  • National franchises (GatorGuard, Garage Force) entering STL with marketing muscle
  • Polyaspartic coatings making traditional epoxy seem outdated
  • Competitors with 5.0 Google ratings and 100+ reviews (Epoxy Stone, StoneCraft)
  • Decorative Concrete Resurfacing (est. 1983) has 100+ national awards
  • Tariff-driven material cost volatility on epoxy resins
  • Midwest construction cycle peaking — 2026 moderation expected
  • Exact-match domain competitors capturing SEO traffic
  • Owner transition risk — customer relationships may not transfer

Risk Factors & Due Diligence Items

1. Revenue Decline Trajectory

Revenue dropped 17.2% from $379K to $314K. The owner attributes this to a decline in installation work. Is this a market issue, a pricing issue, or a sales effort issue (owner scaling back before exit)? Request 3 years of revenue data minimum to establish the trend. If 2023 also shows declining revenue, this is a structural problem, not a one-year blip.

2. Personal Expense Verification

The owner's own annotations flag personal expenses in at least 5 expense categories (Advertising, Entertainment, Telephone, Auto, Insurance-Medical). The SDE reconstruction adds back ~$34K in personal expenses — but these are estimates. A buyer must request detailed bank/credit card statements to verify the actual personal vs. business split. If add-backs are overstated, SDE drops and the valuation compresses.

3. Fleet Replacement Cost

Both primary vehicles are 20-24 years old with 170K-203K miles. Budget $40K-$80K for fleet replacement within the first 1-2 years. A new Ford E-450 box truck is $45K-$65K; a new Transit cargo van is $40K-$55K. This is a hidden acquisition cost that should be factored into the effective purchase price.

4. Owner Transition & Customer Retention

Sean has been the face of this business for 36 years. How dependent is the customer pipeline on his personal network and reputation? What percentage of revenue comes from referrals vs. marketing? A transition plan with Sean staying on for 3-6 months post-close is recommended. Angi reviews reference Sean by name.

5. Product/Technology Risk

The industry is shifting toward polyaspartic and polyurea coating systems. These offer 10x durability, UV stability, and 1-day cure times. Pebblestone epoxy remains a valid niche, but the addressable market may shrink if the company doesn't expand its product line. Due diligence: what percentage of inbound leads specifically request pebblestone vs. generic "garage floor coating"?

6. "Cindy" — Who Is She?

The owner's notes mention "Cindy's Health INS" in both the Advertising and Entertainment lines. If Cindy is a family member (spouse/dependent) on the company's health plan, those are personal add-backs. If Cindy is an employee, the health insurance is a legitimate business expense. This distinction affects SDE by $5-10K. Clarify in due diligence.

90-Day Growth Playbook

If acquired, the following actions represent the highest-ROI marketing and operational improvements, organized by priority and timeline. The core insight: this business has 36 years of brand equity and 244 project photos with zero modern marketing. The upside is enormous.

1

Launch Instagram & Repurpose Yelp Photos

Week 1 — Free — Highest Impact
  • Create @stlresurfacing Instagram account
  • Post 244 Yelp photos as before/after project showcases (3x/week)
  • Use hashtags: #epoxyfloors #concreteresurfacing #stlouis #garagemakeover
  • Add project descriptions, surface types, and location tags
  • Cross-post to Facebook — rebuild that presence simultaneously
2

Google Review Blitz

Weeks 1–4 — Free — Critical for SEO
  • Email/text 36 years of past customers asking for Google reviews
  • Create a review link shortcut and QR code for job sites
  • Target: 50+ reviews within 60 days (aim for 4.8+ rating)
  • Respond to every review (positive and negative) within 24 hours
  • This alone will dramatically improve local search visibility
3

Website SEO & Content Strategy

Weeks 2–6 — $1,500–$3,000
  • Add service-specific landing pages: garage floors, driveways, pool decks, patios, commercial
  • Add location pages: St. Louis, St. Charles, Wentzville, O'Fallon, Chesterfield, etc.
  • Implement FAQ schema for "how much does epoxy flooring cost" type queries
  • Start a blog: project showcases, maintenance tips, epoxy vs. polyaspartic comparisons
  • Target keywords: "concrete resurfacing St. Louis," "pebblestone epoxy," "garage floor coating STL"
4

Google Ads — Local Service Ads

Month 2 — $1,500–$3,000/mo
  • Launch Google Local Service Ads (pay-per-lead, $15-30 per lead)
  • Run search ads for high-intent keywords ($3-10 CPC range)
  • Target: 20-30 qualified leads per month within 60 days
  • BBB A+ badge and 36-year track record as ad differentiators
  • Expected ROI: 4:1+ given average job value of $3,000+
5

Evaluate Polyaspartic Product Line Expansion

Month 3 — $5K–$15K investment
  • Research polyaspartic/polyurea coating suppliers (Penntek, Polyurea Direct)
  • Train crew on 1-day polyaspartic installations
  • Offer as premium tier alongside existing pebblestone epoxy
  • This directly counters GatorGuard and Garage Force competition
  • Polyaspartic jobs command $7-12/sqft vs. $3-7/sqft for standard epoxy
Revenue Growth Potential

With a dedicated marketing effort, adding 3-5 new jobs per month through Google Ads + Instagram + reviews could increase revenue by $100K-$150K annually. Combined with polyaspartic product expansion and reactivation of the repair/reseal revenue stream (which dropped 51% YoY), a $450K-$500K revenue run rate within 12-18 months is achievable for an engaged operator. That would put SDE in the $150K-$200K range — a significant return on a $225K-$350K acquisition.

Recommendation

Deal Verdict: Proceed with Caution

St. Louis Resurfacing is a 36-year-old pioneer in Midwest pebblestone epoxy with an exceptionally clean balance sheet (zero debt, $89K cash, BBB A+ since 1991). The brand equity is real. The core unit economics work when revenue is at normalized levels (2024: $58K net income, 15.4% margin). But the 2025 financials tell a cautionary story: revenue declining 17%, a net operating loss, personal expenses woven throughout the P&L, and an aging fleet that will require $40-$80K in near-term capital expenditure. The opportunity is in what this business could become with modern marketing, product expansion, and operational focus — not what it is today.

If Pursuing This Deal

Factor Guidance
Target Price $225K – $350K (composite of SDE multiple and revenue multiple). If cash ($89.6K) is included, adjust upward accordingly. Negotiate toward lower end given revenue decline and unverified add-backs.
Revenue History Request 3-5 years of P&Ls. If 2023 also shows declining revenue, the trend is structural. If 2025 is an anomaly (e.g., owner scaling back pre-exit), the picture improves significantly.
Add-Back Verification Require bank statements and credit card records to verify personal vs. business split for Advertising, Entertainment, Telephone, and Auto. Clarify who "Cindy" is (family vs. employee).
Fleet Replacement Budget $40K-$80K for vehicle replacement within 12-18 months. Deduct this from your effective offer or negotiate seller financing to cover it.
Transition Plan Negotiate 3-6 month transition period with Sean. His 36-year customer relationships, supplier contacts, and operational knowledge are critical to a smooth handover.
Growth Thesis This deal only makes sense for a buyer who will actively invest in marketing and product expansion. The brand equity and 36-year track record are the platform; the growth has to come from the new owner.
Bottom Line

This is a brand acquisition, not a cash flow acquisition. You're buying 36 years of reputation, BBB A+ trust, a professional website, 244 project photos, a trained crew, a complete equipment set, and a Midwest pioneer position in decorative epoxy — all with zero debt. The 2025 P&L makes the business look worse than it is (personal expenses, receivables timing, installation cycle dip). At the right price ($225K-$300K range), with a clear marketing plan and polyaspartic product expansion, this business has a path to $500K+ revenue within 18 months. But if the revenue decline continues in 2026 without intervention, the brand's value erodes quickly. Time the acquisition right and invest aggressively in growth on day one.