Commercial Parking Lot Striping and Pavement Maintenance Company
This article details the acquisition potential and structural elements of a commercial parking lot striping and pavement maintenance company that specializes in repainting lot lines, handicap spaces, fire lanes, and curb markings, as well as performing basic pavement repair services including crack sealing, sealcoating, and signage installation. The company serves commercial property managers, REITs, shopping centers, healthcare campuses, and municipalities with contracts tied to property turnover cycles, ADA compliance updates, and regular maintenance schedules.
With $3.92 million in annual revenue and $810,000 in adjusted EBITDA, the business operates seasonally (spring through fall) but with consistent cash flow from large commercial portfolios that schedule jobs in advance. Around 66% of revenue is tied to repeat customers through cyclical maintenance agreements, and the remainder comes from one-time jobs, emergency line repainting, and small-bid government contracts. The company owns all its own equipment, including striping machines, seal coaters, and branded vehicles, making it a capital-light and mobile operation with strong margins and high repeat volume.
The business is a strong SBA 7(a) acquisition candidate given its recurring service base, minimal working capital needs, skilled technician teams, and scalable territory model. A buyer can expand service offerings, add recurring monthly service plans, vertically integrate asphalt repair, and acquire nearby striping companies with aging owners and low technology adoption.
Proposed SBA 7(a) Deal Structure
Given the predictability of recurring commercial accounts and moderate capital expenditure needs, this deal is suitable for SBA financing:
Purchase Price: $3.24 million (4.0x EBITDA)
SBA Loan: $2.43 million (75%)
Buyer Equity Injection: $324,000 (10%)
Seller Financing (Subordinated): $486,000 (15%) amortized over 6 years with 12-month interest-only
Protective features:
25% clawback on seller note if repeat client revenue retention falls below 80% in the first 6 months
$40K seller bonus if buyer closes $400K in new maintenance contracts within 12 months
Seller stays for 6–9 months to oversee season transition and manage bid-to-close process with government accounts
Client Segments and Revenue Breakdown
Client base:
Commercial shopping centers and malls: 31%
REIT-owned commercial buildings: 22%
Hospitals and medical centers: 17%
Municipal properties and schools: 14%
HOAs and gated communities: 9%
Logistics and warehouse properties: 7%
Revenue composition:
Parking lot striping and re-striping: $1.9M
Sealcoating and surface protection: $810K
Crack sealing and minor asphalt repair: $510K
Parking signage installation: $340K
Curb painting and ADA compliance: $360K
Most commercial accounts rotate striping services every 12–24 months. Sealcoating and crack repair are typically on 2–3 year cycles. Projects are scheduled seasonally with deposits paid in advance and work completed in clusters to minimize mobilization costs.
No single client exceeds 8.4% of revenue. Top 75 customers represent 65% of total income, with many working on annual maintenance schedules.
Technician Team and Service Model
Staffing:
4 full-time striping crews (2–3 people each)
2 sealcoating and crack repair teams
1 dedicated estimator and project manager
1 dispatcher and scheduler
1 general manager (non-owner)
Crews work from March through November, with off-season reserved for bidding, equipment maintenance, and CRM updates. Technicians are cross-trained to operate stripers, crack sealers, and sealcoat rigs, maximizing flexibility across job types and property layouts.
Post-close technician strategy:
Recruit 2 junior crew members to form a 5th striping team and reduce schedule backlog
Introduce per-job bonus system for repeat client retention and schedule adherence
Create winter training academy for striping best practices, ADA code updates, and bidding strategy
Fleet, Equipment, and Physical Assets
Facility:
6,100 sq ft mixed-use facility
Indoor equipment storage
Sealcoat tank bay and mixing area
Signage prep station
Admin office and materials ordering hub
Lease: $4,950/month with 2 years remaining and 5-year renewal option
Fleet and equipment:
6 branded trucks with mounted stripers
3 trailer-mounted sealcoaters
2 dedicated crack sealing units
FMV: ~$420,000
Fully owned with no liens; all DOT compliant
CapEx forecast:
Replace 1 striping machine nearing end-of-life: $21K
Add drone/photogrammetry tool for parking lot estimation: $6K
Upgrade CRM for mobile bid submissions and time tracking: $11K
Sales Model and Expansion Strategy
Sales channels:
Direct bidding with REIT property managers
SEO and Google Ads for “parking lot striping + [city]”
State bid portals and government vendor databases
Referrals from asphalt paving contractors and HOA managers
Marketing spend: ~$32,000/year
Expansion strategy:
Acquire $250K–$500K revenue striping companies within 60 miles lacking equipment scale
Offer bundled monthly inspection plans with automatic contract renewals
Expand to offer thermoplastic striping and decorative curb solutions
Target high-growth industrial parks and fulfillment centers for recurring touch-up services
Build mobile inspection and instant bid teams using drone mapping and software estimation
Financial Summary
Revenue: $3.92M
COGS (labor, materials, fuel): $1.92M
Gross Profit: $2.0M
SG&A: $1.19M
Adjusted EBITDA: $810K (20.7%)
Margins by service line:
Striping: 55–60%
Sealcoating: 50%
Crack sealing: 60–65%
Signage install: 70%+
ADA updates and curb paint: 65%
Jobs are billed per project, often with 50% deposits and balance due within 15 days of completion. Government clients pay net-30 through procurement portals. REITs and large commercial clients pay via ACH or vendor portals.
Licensing, Safety, and Insurance
Licensed in-state contractor for commercial services
OSHA-compliant jobsite protocols with weekly safety meetings
DOT-compliant fleet and CDL driver roster
Fully insured: $2M GL, $1M auto, $1M umbrella, $1M workers comp
No current litigation, accidents, or environmental violations. Materials (e.g., sealcoat) stored per EPA recommendations and municipal fire code.
Working Capital and Transition Budget
Payroll float: $95K–$110K
Equipment upgrades and CRM implementation: $38K
Seller consultation and bidding strategy transfer: $22K
Drone/photo estimation system: $6K
Seasonal new hire recruiting budget: $18K
Ideal Buyer Profiles
SBA-qualified buyer with route-based B2B experience
Pavement or landscaping operator seeking vertical expansion
PE-backed facility services group building a parking lot roll-up
Buyer seeking stable cash flow with low AR exposure and strong asset base
Post-Close Execution Plan
Launch “spring kickoff” client outreach campaign confirming season schedule
Introduce CRM and time tracking for job cost optimization
Hire 2 new crew members and launch 5th team by June
Identify 2 tuck-in acquisition targets under $500K in revenue
Build 12-month bundled pricing for clients including striping, crack repair, and signage
Conclusion
This commercial striping and pavement services company delivers recurring, regulation-driven revenue with limited competition in its service region. Its fleet, technician teams, and client base offer the buyer a strong operational foundation with clear expansion paths. As demand for ADA compliance, visual safety, and property aesthetics continues to rise, the business is positioned as a critical vendor in commercial and municipal real estate maintenance cycles. A buyer can scale through territory, service line, and acquisition all while maintaining strong margins and seasonal cash flow predictability.
