Welcome to the week. We are tracking Priority Commerce’s $11.5 million acquisition of IntelliPay, Landscape Workshop’s purchase of three Outworx landscaping businesses, a 40-year-old New York HVAC company listed at roughly 2 times seller earnings, and new SBA rules that tighten acquisition underwriting from October 1.

Priority Commerce acquires IntelliPay for $11.5M, with up to $3.5M more tied to performance

Priority Technology Holdings, a Nasdaq-listed payments company based in Alpharetta, Georgia, agreed to acquire IntelliPay. The Draper, Utah-based processor serves government agencies, schools, and healthcare organizations. Priority will pay $11.5 million upfront, with up to $3.5 million more over eight quarters if IntelliPay meets financial targets. Priority expects the business to contribute just over $4 million in revenue for the remainder of 2026, implying an annualized run rate of roughly $12 million.

Translation, if you own one: vertical payments businesses with embedded government, education, or healthcare relationships should remain attractive acquisition targets because their customer bases are difficult to win and displace. Expect buyers to care about contract durability and integration depth. 

Source: Priority Tech buys IntelliPay for up to $15M 

Landscape Workshop acquires three Outworx landscaping businesses
Landscape Workshop acquired Aero Groundtek, Gold Landscape, and Lawn Butler from Outworx Group, adding operations in Dallas and Salt Lake City while expanding its existing Orlando presence. The deal marks the Birmingham-based company’s largest acquisition to date. Employees from all three businesses are joining Landscape Workshop, while former Outworx landscape services VP Christopher Null will become a regional vice president. Financial terms were not disclosed.

Translation, if you own one: route density and recurring maintenance contracts can command a premium because buyers can fold them into nearby branches and improve crew utilization quickly.

Source: Landscape Workshop Expands National Footprint

New York HVAC and building automation business listed for $649K on $319K cash flow
A Warren County, New York, HVAC, refrigeration, and building automation company, established in 1985, is listed for $649,000. The business reports $1.65 million in annual revenue and $318,744 in seller’s discretionary earnings, putting the asking price at roughly 2x SDE. The listing includes $100,000 of inventory and $150,000 of equipment, while the company’s 2,200-square-foot property is available separately for $500,000. The owners are retiring, and the broker identifies preventative maintenance agreements, plumbing and electrical services, and additional residential work as potential growth areas.

Translation, if you own one: a 40-year-old business with $1.65 million in revenue is still priced at roughly 2 times seller earnings, while maintenance agreements are being presented as future upside for the buyer. If those contracts were already in place, more of the revenue would be predictable, and the business could command a stronger valuation.

Source: 40-Year-Old HVAC and Refrigeration Business Hits the Market 

The SBA’s new lending manual, SOP 50 10 8.1, takes effect on October 1, 2026, and changes how business acquisitions financed with 7(a) loans will be underwritten. 

For Initial Acquisitions, Owner Buyouts, and ESOP transactions, the minimum debt service coverage ratio rises from 1.15x to 1.25x. Business Expansions remain at 1.15x. Coverage must be supported by the last fiscal year-end or an average of the last two years, and lenders cannot use post-closing projections to make the ratio work.

Every change-of-ownership transaction must now go through Standard 7(a) underwriting, regardless of size, with a full credit analysis and an independent accredited business valuation. Initial Acquisitions and Business Expansions with a business purchase price of $3 million or more also require a lender-ordered Quality of Earnings report. 

Initial Acquisitions require a 10% equity injection. Business Expansions and Owner Buyouts also start at 10%, but lenders can reduce or eliminate that requirement when the borrower meets the required liquidity and net-worth tests. When an injection is required, the sum of non-controlling minority investor equity, seller standby notes, and other standby debt may cover no more than 50% of the required injection. 

The rules apply to loans that receive an SBA loan number on or after October 1. If you are already under LOI with a 7(a) buyer, the important date is when the SBA loan number is issued, not when the application is submitted, or the transaction closes.

A chiropractor who built a sports practice for about $25,000, worked with PGA Tour athletes, and eventually sold the business after insurance reimbursements fell from roughly $220 per visit to as little as $70.