Distressed deals
Buy good businesses below what they're worth.
Distress drives the price down. We find the deals where the business is still sound, and show you the gap.
Brokers · Family offices · Private equity · Investors
| Sales, 2025 | 48.0 | +9.6% |
| Labor | 16.3 | 34% of sales |
| Food cost | 14.4 | 30% |
| EBITDA | 3.6 | 7.5% |
| Owed | 11.1 | 7.3 bank · 3.8 cash advances |
| Cash flow after debt | (0.5) |
Good business, bad balance sheet. Labor at 30% of sales would add 4 points of margin.
| Rent and other income | 1,246 | 48 × $2,100, 100% rented |
| Vacancy and unpaid rent | (73) | 6% |
| Operating costs | (492) | 41% |
| Net operating income | 681 | |
| Owed | 9,800 | covers the payment 1.07x |
| New loan at 65% of value | 6,560 | $3.2M short |
The building is fine. The loan is too big to refinance, so the owner must sell or cut a deal.
| Occupancy | 64% | market 68% |
| Average rate | $118 | RevPAR $76 |
| Room revenue | 2.2 | |
| Net operating income | 0.57 | 26% margin |
| Brand renovation due | (1.2) | $15K a room |
| Owed | 7.4 |
$80K a room before a $1.2M renovation. $5.2M is the value less the renovation.
| Fuel, 1.2M gallons × 32¢ | 0.38 | gross profit |
| Store sales $1.9M × 31% | 0.59 | gross profit |
| Car wash | 0.12 | |
| Operating costs | (0.62) | |
| EBITDA | 0.47 | |
| Tanks installed | 2004 | test and insurance needed |
Business at 3–4x EBITDA ($1.4–1.9M) plus land at a 6.5% cap ($3.2M). Price is fair; the tanks decide it.
| Leased | 78% | market 92% |
| Income today | 0.98 | rent $24 a sq ft plus tenants' cost share |
| Net operating income | 0.66 | |
| Owed | 9.5 | covers the payment 0.99x |
| Cost to fill the space | (1.6) | build-outs, commissions |
| Worth once 92% leased | 11.1 | 7.5% cap |
Buy at today's value, fill the empty stores, and the gain after costs is $1.28M.
| Units rented | 91% | |
| Rent collected | 86% | 5 points of unpaid units |
| Income, $15 a sq ft | 0.67 | |
| Operating costs | (0.24) | 36% |
| Net operating income | 0.43 | |
| Competitors within 3 miles | 9 | rates down 2% this year |
Asking $131 a sq ft; worth $118. Street rates are falling, so there is no rate upside.
| Leased | 92% | 6 practices |
| Rent, $34 a sq ft | 0.94 | |
| Operating costs | (0.36) | 38% |
| Net operating income | 0.58 | |
| Largest tenant | 38% | lease ends in 14 months |
| Owed | 8.6 |
Doctors rarely move. Renew the big tenant first; then the lender's $8.6M is the most to pay.
| Revenue | 3.2 | 35% on service contracts |
| Profit on the tax return | 0.28 | |
| Owner's salary and perks added back | 0.32 | |
| Owner's earnings | 0.60 | 18.8% |
| Licensed plumbers on staff | 9 | manager in place |
| Trucks and equipment | 0.42 | floor |
Repeat work and a manager earn the top of the range. Offer $1.9M; the tax bill gives the seller a reason to take it.
| Enrollment | 90% | 126 children |
| Revenue, $1,650 a month | 2.49 | |
| Staff | (1.37) | 55% of revenue |
| EBITDA | 0.40 | 16% |
| Back rent owed | 0.21 | 4 months |
| License inspection | Clean | renewed March |
A waiting list and a clean license. Settle the landlord as part of the price.
| Revenue, $190K a truck | 8.0 | |
| EBITDA | 0.72 | 9% |
| Top 3 customers | 61% | of revenue |
| Trucks, average age | 5.8 yrs | worth $2.3M |
| Owed on trucks | 2.9 | |
| Cash advances | 1.1 |
Worth less than the trucks owe. Margins are 9% and three customers are 61% of revenue; the lender keeps the fleet.
How it works
We find it. We check it. You decide.
We find it
Tell us what you buy and where. We email you the day a match comes up.
We check it
Location, brand, sales, debt, price and timing. One verdict.
You decide
Pass, or call us. We value it, prepare the lender package and work the closing with you.
Covering NY, NJ, PA, WA, CA and DE today.
Track record
Three real cases.
Measured by hand on real cases. Names withheld; details on request.
Examples
What it's worth, next to what it owes.
Good building, too much debt: $3.2M short at refinance.
Fill the empty stores for $1.6M and gain $1.28M.
35% of revenue renews every year. A manager in place lifts the price.
Samples. Cap rates and multiples are illustrative, not market quotes.
Services
One stop, from the deal to the close.
Find
Distressed deals in your industries and states, the day they come up.
Check
One page: location, brand, sales, debt, price, timing. One verdict.
Value
What it's worth, how we got there, and what similar deals sold for.
Finance
We underwrite the deal the way a lender will and introduce you to lenders who fund these deals: SBA, bank and private.
Advise
Bid strategy, diligence, who to call, and the plan to fix what made it cheap.
Close
Dates, documents and the people on the other side, through the sale hearing.
Flat fees, agreed up front. Paid by buyers only; lenders pay us nothing. We also publish research on where distress is rising, by state and industry.
DHI Signal · free
We also track stocks, gold, oil, bonds and currencies.
One call on each market we track, with a confidence score. See our current view, free.
Talk to us
Tell us what you buy.
We reply within one business day.