Air Filtration Products and Services, California Industrial Contractor

$4.3M

Revenue

$775K

SDE

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Full Editorial Writeup

This is an industrial air filtration business that designs, installs, and services systems that pull fumes, mist, and dust out of working environments across California, Nevada, and Arizona. Revenue splits across equipment and duct work (50%), filters and parts (21%), services (24%), and other sales (5%), which gives it a healthy mix of project revenue and recurring aftermarket parts and service pull-through. The customer base spans recycling, aerospace and defense, semiconductors, food manufacturers, and general manufacturing, which are industries where clean-air compliance is regulatory and non-negotiable rather than optional.

The company generates $4.25M in gross revenue with $775K SDE and $525K EBITDA, so it converts roughly 18% of revenue to owner earnings and 12% to EBITDA. Those are solid margins for a mixed project-plus-service industrial contractor, and the recurring filters/parts (21%) and service (24%) lines together make up 45% of revenue, which softens the lumpiness of the equipment installs.

What makes this notable is the demand driver: worker safety and environmental compliance. OSHA exposure limits and air-quality regulations force manufacturers to maintain and upgrade filtration whether the economy is up or down, and the $2.6M in signed 2026 backlog as of mid-July confirms real forward visibility rather than hopeful pipeline. The three-state footprint and diversified end markets give a buyer a clean base to expand geographically or deepen the service and filter-cleaning attach rate.

Why we like it

Earnings quality is anchored by recurring revenue: filters and parts (21%) plus services (24%) make up 45% of the $4.25M top line, which are repeat, non-discretionary purchases tied to installed equipment. That aftermarket pull-through is stickier and higher-margin than one-time equipment sales, and it produces $775K SDE on 18% owner margins.
The moat is regulatory and relationship-driven. Filtration is mandated by OSHA exposure limits and environmental rules, so semiconductor, aerospace, food, and recycling customers cannot skip it, and once you install and service a plant's system you become the default vendor for parts and maintenance for years.
Demand tailwinds are real and diversified. Reshoring of semiconductor and aerospace manufacturing, tighter air-quality enforcement, and a spread across recycling, defense, and food manufacturers mean no single industry cycle sinks the business, and the multi-state California, Nevada, Arizona footprint captures the Southwest industrial buildout.
There is unusual forward visibility for a business this size. A $2.6M signed backlog for 2026 as of mid-July is over 60% of trailing revenue already booked, which de-risks the first year of ownership and gives a buyer a concrete number to underwrite against rather than a broker's forecast.

How to improve it

Push the service and filter-cleaning attach rate on every equipment install. Equipment and duct work is 50% of revenue but services is only 24%, so tying a scheduled maintenance and filter-replacement contract to each new system converts one-time project revenue into a recurring annuity and lifts blended margin.
Build a formal preventive maintenance recurring-contract program with annual or quarterly billing. Recurring service agreements smooth the lumpiness of project revenue, improve cash flow predictability, and raise the multiple a future buyer will pay for the business.
Expand the product line into adjacent high-margin categories the listing already flags: air compressors, installation capability, and filter cleaning. Selling more into the existing customer base is cheaper than new-customer acquisition and deepens vendor lock-in per account.
Add a fourth and fifth state to the existing three-state footprint. Adjacent markets like Texas, Utah, and Oregon share the same industrial and semiconductor customer profile, and geographic expansion is a proven lever the seller explicitly identifies but has not executed.
Install a CRM and quoting system to shorten the sales cycle and track the backlog pipeline. Better visibility into project stages and renewal timing for filters and parts prevents revenue leakage and lets a new owner forecast and staff accurately.
Systematize field technician training and certification to remove key-person risk and enable faster crew scaling. Documented install and service procedures let you take on more contracts without quality slipping, which is the main constraint on growing a contractor business.

Diligence notes

Confirm the $2.6M 2026 backlog is genuine signed contracts with binding terms, not verbal commitments or letters of intent. Ask for the actual agreements, deposit status, and historical backlog-to-recognized-revenue conversion, because forward visibility is the core reason to like this deal.
Break down customer concentration across the recycling, aerospace, semiconductor, and food segments. A diversified industry mix is claimed, but you need the top-10 customer revenue percentages to know whether losing one or two accounts would materially dent the $4.25M base.
Scrutinize the SDE bridge from $525K EBITDA to $775K SDE. Understand the owner add-backs, owner compensation, and how much of the owner's role is technical sales or estimating, because that determines what you must replace and whether the earnings are sustainable post-close.
Verify the revenue mix and margins by segment, especially whether the equipment/duct work projects (50% of revenue) carry meaningfully lower margins than parts and service. You are paying for earnings quality, so know which lines actually drive the $775K SDE.
Assess the age, condition, and pipeline stability of the business given years in business is undisclosed. Ask when it was founded, why the reputation was built 'quickly,' and whether the recent growth reflects a durable base or a few large one-time projects.

Source

Originally listed on BizBuySell. View original listing →