Pothole Repair Service
Over $18B is spent on road repairs every year — most of it on potholes
Bottom line
Accessible entry point; validate local supply before buying.
Pothole repair businesses patch asphalt for parking lots, private roads, HOA communities, and municipalities using cold-fill or infrared restoration methods. The infrared method — which heats existing asphalt, rakes it smooth, and applies new material — produces seamless patches that last 10x longer than cold-fill and commands significantly higher prices. The surprising angle: private property owners (not just government) pay on commercial terms, and most parking lot owners have no idea who to call when a pothole appears.
Avg Revenue
$350K
Profit Margin
36%
Acquisition Multiple
2x - 3.5x
Startup Cost
$5K - $40K
How It Works
Operators patch potholes in parking lots, driveways, and private roads. Basic cold-patch equipment runs under $5K and can generate $2,500/day at $100 per pothole with 25 repairs. Infrared equipment ($15K-$40K) increases job price and longevity dramatically. Commercial and HOA accounts provide recurring work — lots degrade every season. Winter creates a surge from freeze-thaw damage, making this a year-round business in northern markets where competitors go dormant.
Revenue Range
BizBite underwriting snapshot
Watch / verify
Pothole Repair Service 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.
Category-level fit before lender-specific diligence.
Weak source data caps the final score.
Why it may work
- +Attractive 36% 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
- !No category model yet
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 238990 · All Other Specialty Trade Contractors
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal |
|---|---|---|---|
| Mar 2026 | TN | $447K | $526K |
| Mar 2026 | CA | $350K | $412K |
| Mar 2026 | VA | $300K | $353K |
| Mar 2026 | CO | $545K | $641K |
| Mar 2026 | MA | $1.6M | $1.9M |
| Mar 2026 | VA | $4.2M | $5.0M |
| Mar 2026 | NC | $2.3M | $2.7M |
| Mar 2026 | OH | $25K | $29K |
| Mar 2026 | OH | $210K | $247K |
| Mar 2026 | MN | $855K | $1.0M |
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.
Pros
- +Extremely low startup cost — basic equipment under $5K to start
- +Year-round demand in cold climates — freeze-thaw creates continuous new work
- +Private property owners pay faster and negotiate less than governments
- +Infrared upsell sharply increases revenue per stop without more labor
Cons
- -Physical, outdoor work in all weather conditions
- -Hot asphalt handling requires safety equipment and training
- -Seasonality in warmer markets reduces winter volume
Best For
Hands-on operators in northern or high-traffic markets who want fast revenue with minimal startup capital
Operating Costs
Operator data shows $100/pothole for basic cold-fill at 25 repairs/day = $2,500/day gross. Asphalt repair owner income reported at $150K-$420K depending on volume. Main costs are cold-patch or hot-mix asphalt material, vehicle, infrared equipment if used, insurance, and marketing. Net margins of 35-40% are achievable once equipment is paid off.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Detailed guide on starting a pothole repair business with pricing and equipment data
Acquisition listings for asphalt and pavement maintenance businesses
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- service
- Difficulty
- 2/5
- Buy price
- $700K–$1.2M
Buyer's Toolkit
Essential tools to get started
Some links may be affiliate links. We only recommend tools we'd use ourselves.
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Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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