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BIZBITE

Pavement Crack Sealing & Repair

Asphalt cracks in every climate. Someone has to fix it.

Bottom line

Accessible entry point; validate local supply before buying.

Pavement crack sealing businesses fill and seal cracks in asphalt parking lots and roadways to prevent water infiltration and extend pavement life. The surprisingly compelling economics: materials cost roughly $0.05–$0.15 per linear foot, while charging $1.50–$3.00 per linear foot to clients. A single crew can complete $3,000–$8,000 of work per day. Every commercial property in America has a parking lot, and crack sealing needs to be done every 3–5 years. It's essentially a mandated recurring service most property managers dread handling. Companies that combine crack sealing with sealcoating can 3–5x their ticket size per job.

Acquisition score
Margin · multiple · SBA data
78Excellent
Avg revenue
$500K/yr
$200K–$1.5M range
Profit margin
35%
~$175K SDE
Multiple
2–3×
of SDE
Est. buy price
$350K–$525K
startup: $30K–$100K

How It Works

Crews use routers or saws to clean out cracks, blow them clear with compressed air, then apply hot-pour rubberized crack filler using a melter/applicator. Work is booked through commercial property managers, HOAs, municipalities, and retail chains. Most recurring clients need treatment every 3–5 years as part of a pavement maintenance plan.

BizBite verdict

Contact broker

Pavement Crack Sealing & Repair has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

78Excellent
medium data confidence · 52/100medium financing fit

Why it may work

  • +Attractive 35% estimated margin profile
  • +SBA dataset shows 295 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No category operating model yet

SBA 7(a) data

Real acquisitions in this category

Change-of-ownership loans · NAICS 238990 · All Other Specialty Trade Contractors

Deals tracked
729
295 in last 24 mo
Median loan
$660K
$305K–$1.7M p25–p75
Implied deal size
$777K
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal size distribution

<$150K
66
$150K–500K
218
$500K–1M
158
$1M–2M
131
>$2M
156

Deal flow over time

12-month momentum
−12.1%
deal volume vs prior 12 mo
Median loan Δ
+40.2%
138 recent · 157 prior

Financing profile

Median rate
9.50%
19% fixed · last 24 mo
Median term
120 mo
standard 10-yr
Collateralized
0%
of loans secured
Median jobs
10
supported per deal
Top lenders in this space
The Huntington National Bank111
Live Oak Banking Company110
Old National Bank27
First Internet Bank of Indiana24
Beacon Bank and Trust19
Where deals happen
FL113
CA54
TX53
MN38
PA31
CO31
NC29
WA27
IL26
WI25

Franchise vs independent

Franchised acquisitions finance at $620K median vs $671K for independents — a −8% franchise discount. Franchises make up 8% of deals tracked.

Recent comparable deals

ClosedStateLoanImplied deal
Mar 2026TN$447K$526K
Mar 2026CA$350K$412K
Mar 2026VA$300K$353K
Mar 2026CO$545K$641K
Mar 2026MA$1.6M$1.9M
Mar 2026VA$4.2M$5.0M
Mar 2026NC$2.3M$2.7M
Mar 2026OH$25K$29K
Mar 2026OH$210K$247K
Mar 2026MN$855K$1.0M
Volume rank #6/544Deal-size rank #291/544Momentum rank #216p90 loan: $2.9MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Deal Calculator

Priced off $175K SDE — can this deal service its own debt?

2.85×
DSCR · Lender-comfortable
Purchase multiple — 2.5× SDE ($440K)
Category range: 2×–3× SDE
Down payment — 10% ($44K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 9.50%
SBA median for this category: 9.5%
Loan term — 10 years
SBA median for this category: 120 months
Purchase price
$440K
2.5× of $175K SDE
Cash to close
$57K
$44K down + ~3% closing
Debt service
$5K/mo
$61K/yr on $396K loan
Cash-on-cash
198%
cash back in ~7 mo
Debt service coverage · what the lender sees
2.85×+$9K/mo after debt
Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

  • +Extremely high labor-to-material margin (10–20x markup on materials)
  • +Low startup cost — basic setup under $30K
  • +Every commercial property is a potential recurring customer
  • +Can bundle with sealcoating and striping for larger tickets
  • +Minimal competition in most markets outside metro areas

Cons

  • -Seasonal in cold climates (limited to spring–fall in northern states)
  • -Physically demanding outdoor labor
  • -Hot-pour equipment requires safety training
  • -Revenue is lumpy without a built-up client base

Best For

Owner-operators willing to do physical outdoor work, or investors looking to add to existing asphalt/pavement business

Operating Costs

Equipment (crack router, melter/applicator, air compressor) runs $15K–$40K new. Materials (rubberized sealant) are cheap. Main ongoing costs are labor, fuel, and equipment maintenance. Sealcoating as an add-on requires additional equipment.

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