Elevator Inspection and Compliance Consulting Company
This article provides an acquisition roadmap for a commercial elevator inspection and vertical transportation compliance consulting business that performs third-party inspections, plan reviews, violation abatement, and modernization project oversight for commercial real estate owners, property managers, municipalities, hospitals, and schools. The company does not install or maintain elevators, but instead operates as an independent compliance services provider, ensuring that elevators meet local and national code requirements (ASME A17.1, ADA, IBC).
The company generates $2.98 million in annual revenue and $685,000 in adjusted EBITDA. Approximately 85% of revenue is recurring via annual or semi-annual inspection contracts, with the remainder tied to plan reviews, modernization oversight, and violation remediation support. Technicians are certified by Qualified Elevator Inspector (QEI) programs and authorized to perform jurisdictional inspections under state and city mandates, making the company highly defensible and essential for property compliance and safety certification.
Due to its recurring regulatory revenue, low overhead, and skilled labor model, the company is an ideal candidate for SBA 7(a) acquisition. A new owner can scale through technician expansion, territory growth, acquisition of smaller one-inspector shops, and the addition of adjacent consulting services like ADA elevator audits and vertical accessibility planning for municipalities.
Proposed SBA 7(a) Deal Structure
The company’s recurring, code-mandated revenue stream and high margin profile support a traditional SBA 7(a) structure:
Purchase Price: $2.74 million (4.0x EBITDA)
SBA Loan: $2.055 million (75%)
Buyer Equity Injection: $274,000 (10%)
Seller Financing (Subordinated): $411,000 (15%), amortized over 6 years with 12-month interest-only period
Protective terms:
25% clawback on seller note if inspection contract renewal rate falls below 90% in the first 6 months
$35K performance bonus if buyer expands active client count by 100+ buildings in year one
Seller to remain available for regulatory liaison, license transfer support, and inspector onboarding for 9 months
Client Base and Revenue Composition
Client mix:
Commercial property management firms: 32%
Healthcare campuses: 21%
Public schools and universities: 17%
Municipal buildings and transit hubs: 15%
Hotels and mixed-use developers: 9%
Architects and engineering firms: 6%
Revenue composition:
Annual and semi-annual elevator inspections: $2.1M
Modernization plan review and consulting: $420K
Violation abatement and inspection follow-ups: $250K
Accessibility and ADA compliance audits: $140K
Expert witness and legal testimony: $70K
Most inspection contracts are 12–36 months in duration with renewal terms. Contracts include required jurisdictional inspections, on-site physical assessments, paperwork filing with regulatory bodies, and digital reporting. Clients are billed per inspection, with milestone billings for modernization consulting and project management services.
No single client exceeds 6.7% of revenue. Top 50 clients comprise 61% of the total base, including city departments, hospital systems, and major REIT portfolios.
Technical Staff, Certifications, and Labor Strategy
Personnel:
6 QEI-certified elevator inspectors with dual jurisdiction credentials
1 ADA audit specialist
1 modernization consultant (non-field role)
2 dispatch and report coordinators
1 general manager and license holder
Inspectors are certified through NAESA and ASME programs, and maintain active compliance with state/local licensing boards. Inspections are performed using iPads with reporting software that interfaces with municipal compliance portals.
Post-close talent strategy:
Recruit and sponsor two inspector trainees for QEI certification
Launch ADA audit cross-training for modernization consultant and two field inspectors
Implement bonus program tied to on-time inspection filing and zero-reinspection KPIs
Facility, Technology, and Capital Expenditures
Facility:
3,000 sq ft office and document storage facility
Inspector dispatch desks and compliance filing room
Report printing station and digital records server
Training room for code updates and manufacturer briefings
Lease: $3,450/month with 2 years remaining and 5-year renewal option
Technology:
Inspector tablets with cloud-based reporting software
Secure digital file system with 7-year retention policy
Calendar-based client notification and filing system
CapEx plan:
Add 2 inspector tablet packages and software licenses: $7K
CRM integration for client alerts, inspections, and file sharing: $9K
Update training portal with video content and regulation tracking: $4K
Sales Process and Growth Strategy
Sales channels:
RFP responses to municipalities, hospitals, and school districts
Referrals from property managers and code compliance officers
SEO and direct search ads for “elevator inspection + [city]”
Strategic relationships with elevator maintenance companies and architects
Annual marketing budget: ~$28,000
Growth opportunities:
Acquire $200K–$500K single-inspector firms and consolidate licenses and accounts
Expand ADA vertical access audit services to architects and public facilities
Launch branded “elevator compliance portal” for client dashboard access
Offer monthly compliance review plans for property managers
Train expert witnesses for litigation support in elevator liability cases
Financial Summary
Revenue: $2.98M
COGS (inspector labor, licensing, insurance): $1.26M
Gross Profit: $1.72M
SG&A: $1.035M
Adjusted EBITDA: $685K (23%)
Profit margins by service line:
Inspections: 55–60%
Modernization consulting: 65–70%
Violation abatement and ADA audits: 70–80%
Expert testimony and litigation support: 85%+
Most inspections are billed post-service or monthly on a per-building basis. ADA audits and consulting are invoiced in milestones. Litigation work is retainers + hourly billing. Municipal clients pay through procurement portals.
Licensing, Insurance, and Risk Management
QEI-certified inspectors in full compliance with ASME and NAESA
Jurisdictional licenses in 3 states and 14 municipalities
Fully insured: $2M GL, $1M professional liability (errors & omissions), $1M umbrella
No current litigation, lapsed filings, or licensing violations
Company operates with active licenses in place and clean record across all departments of labor, building code enforcement, and city oversight boards.
Working Capital and Transition Budget
Payroll float: $95K–$110K
Software and tech upgrades: $11K
Seller advisory and license transition: $28K
Inspector training and onboarding budget: $18K
CRM and client communications integration: $9K
Ideal Buyer Profiles
SBA-qualified buyer with facilities compliance or technical service background
Commercial property services company expanding into inspection niches
PE platform building regulated building services portfolio
Engineering or safety consulting firm seeking stable recurring services
Post-Close Execution Plan
Meet with top 50 clients and issue continuity of service letter with license verification
Launch recruiting effort for 2 inspector apprentices
Digitize 5 years of archived inspection reports into CRM system
Begin outreach to 10+ small inspection firms in adjacent cities for tuck-ins
Build new ADA audit vertical with report templates, sales materials, and pricing tiers
Conclusion
This elevator inspection and compliance firm provides code mandated, high margin services with defensible client relationships and minimal capital requirements. Its licensing footprint, digital reporting tools, and recurring inspection base make it a scalable compliance platform ideal for an SBA 7(a) buyer. Whether through territory expansion, adjacent service line launches, or vertical roll-ups, the business provides a rare opportunity to enter a critical niche with regulatory momentum and operational leverage.
