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Target Criteria

SMB Acquisition Deal Parameters — February 2026

Deal Structure

Parameter	Target
Investors	2 partners
Equity per partner	$400,000 - $500,000 CAD
Total equity	~$1,000,000 CAD
Enterprise value	$3,000,000 - $5,000,000 CAD
Senior debt	$2,800,000 - $3,300,000 CAD
Seller note	$200,000 - $500,000 CAD (preferred)
Target DSCR	1.3x - 1.5x minimum

Ideal Target Profile

Financials

Revenue	$4M - $7M CAD
EBITDA	$700K - $1.2M CAD
Service/maintenance mix	60%+ of revenue
Customer concentration	No customer >10% of revenue

Geography (Within 3-hour drive of Toronto)

GTA (Toronto, Mississauga, Brampton, Markham, Vaughan, Richmond Hill)
Hamilton, Burlington, Oakville, Milton
Kitchener-Waterloo-Cambridge-Guelph
London
Barrie, Orillia, Collingwood
Niagara Region
Kingston
Peterborough, Brantford

Operations

Business age: 10+ years established
Staff: Licensed technicians + office/admin support
Technology: Modern field service software (ServiceTitan, Housecall Pro) or ready for upgrade
Documentation: Clean job history, pricing books, SOPs

Owner/Transition

Owner ready to step back or exit
Willing to stay 6-12 months for transition
Technicians not dependent on owner personally

✓ What Banks Want to See

GM is identified early
Sellers stay on for 6-12 months
Service revenue dominates (not project-based)
Customer concentration is low
Clean books with no aggressive addbacks

✗ Red Flags to Avoid

Heavy reliance on new construction (cyclical)
Single large customer >15% of revenue
Owner is the lead technician (key man risk)
No CRM or dispatch system
Storm-chasing models (roofing)
High employee turnover