In partnership with

ScoutDesk | Issue no. 7

This week’s mix spans routes, restaurants, contractors, and specialty retail. But the deeper theme isn’t lease terms or even margins. It’s reputation — whether customer trust, brand goodwill, and recurring demand actually transfer when ownership changes.

Food and beverage

This set is mostly “repeatable demand with a physical footprint,” which means the surface story is food, but the diligence story is reputation and consistency. The real risk is reputation-risk: reviews, local goodwill, and whether customers stick around through a transition. If you’re skimming, look for businesses that feel resilient even if you’re not the face of the brand.

Smart starts here.

You don't have to read everything — just the right thing. 1440's daily newsletter distills the day's biggest stories from 100+ sources into one quick, 5-minute read. It's the fastest way to stay sharp, sound informed, and actually understand what's happening in the world. Join 4.5 million readers who start their day the smart way.

Local services you can operationalize

This set is mostly operational machines: crews, routes, and repeat service. The real risk is reputation-risk in a different form: in local services, reputation is what keeps the phone ringing when the owner changes. If you’re skimming, look for businesses where trust is built into process, not just a person.

Retail

Retail this week is thin but clear: you’re buying local trust and repeat behavior. The real risk is reputation-risk: once a neighborhood decides you’re “the place,” it’s valuable; if that breaks, the business is just inventory and rent.

Professional services

Professional services are reputation products first and operational products second. The diligence question is whether the trust transfers with the business or stays with the person.

Online/software

This is the “trust + pipeline” version of software: reputation with parents and consistent enrollment demand matters at least as much as the curriculum.

Deal math of the week

Roofing contractor (Santa Rosa)

$895,000 asking on $382,000 profitability (as listed). That’s about a 2.3x multiple — roughly a 2.3-year pre-debt payback.

What that multiple is really saying: you’re paying for crew stability and project pipeline. If those are tied to the current owner’s relationships, that multiple can widen quickly.

Three diligence questions I’d ask before getting excited:

  • How many active contracts are secured for the next 12 months?

  • What percent of revenue comes from repeat versus new customers?

  • Who estimates jobs and manages client relationships today?

One useful lens for this week’s mix: platform risk

Several listings this week depend on infrastructure they don’t control.

The Snyder’s-Lance route is a distribution agreement. Even professional practices often depend on referral channels.

Buyer implication: platform dependence isn’t bad — it can create stability. But you’re underwriting not just the business, but the ecosystem it sits inside.

Practical takeaway: ask early what percentage of revenue depends on one brand, one supplier agreement, or one digital channel. If that relationship changes, your multiple changes.

What's your favorite source for finding businesses for sale?

Login or Subscribe to participate

Keep Reading