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- Jan 12th (Mon) 9 AM NY
Jan 12th (Mon) 9 AM NY
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Deal Alert: Cash-Flowing Premium Coworking Business (Operator-Friendly)
📍 Location: Major U.S. metro, high-demand business districts
🏢 Sector: Coworking / Flexible Office
🏪 Locations: 2 established sites
💰 Asking Price: $3.5M (~3.8x EBITDA)
📈 Financials: ~$2.7M Revenue | ~$920K Adjusted EBITDA
🧑💼 Owner Involvement: ~1 hour/day
👥 Staff: 5 full-time
📑 Leases: Long-term, locked through 2028
🌟 Why This Business is Great:
✔ This Is Not “Hype” Coworking
When most buyers hear coworking, they think volatility, short-term memberships, and WeWork-style risk.
That’s not what this is.
Roughly 83% of revenue comes from private offices, not day passes or hot desks. These are longer-term members paying predictable monthly rent. From an M&A perspective, that revenue mix materially changes the risk profile.
This behaves much closer to a service-heavy office rental business than a trendy coworking brand.
✔ Strong Margins for the Sector
A ~34% EBITDA margin in coworking is meaningful.
It tells me:
Pricing power exists
Cost structure is under control
The business isn’t being propped up by owner add-backs or unrealistic assumptions
At ~$920K of EBITDA on $2.7M in revenue, this clears the bar for a real operating business, not a lifestyle play.
✔ Semi-Absentee With Real Infrastructure
The owner is largely hands-off, spending about 1 hour per day.
That only works because:
There’s a long-tenured operations lead
The team is small but stable
Daily execution does not rely on the owner’s presence
From a buyer’s standpoint, this reduces key-person risk and shortens the transition curve.
✔ Lease Visibility Reduces Near-Term Risk
Both locations are leased through 2028.
That removes near-term renegotiation risk, which is often a major diligence concern in flex office deals. While fixed rent cuts both ways, having lease certainty provides planning clarity for the next owner.
🚧 Risks & Things I’d Underwrite Carefully
❌ Fixed Rent Is the Main Risk
This is not passive real estate.
Rent is a fixed cost, so occupancy discipline matters. Any buyer needs to understand:
Break-even occupancy by location
Sensitivity to vacancy
Local demand dynamics
That said, this is an operational risk, not a structural one.
❌ Not SBA-Eligible
Under current SBA rules, this deal doesn’t qualify.
However, with ~$920K in EBITDA, the cash flow can comfortably support private debt or structured seller financing. This limits some buyer pools but doesn’t impair deal viability.
❌ Operator Mindset Required
This is not a “buy it and forget it” asset.
It rewards:
Active pricing decisions
Corporate sales focus
Basic marketing execution
Buyers looking for fully passive income will be disappointed. Operator-buyers will see opportunity.
🚀 Growth Levers I See Immediately
🔹 Pricing Optimization
Most coworking businesses underprice during high-demand periods.
Dynamic pricing, office tiering, and tighter renewal discipline can expand margin without adding space.
🔹 Corporate & Team Offices
Corporate teams have:
Higher LTV
Lower churn
Fewer service issues
Pushing this segment alone can materially improve revenue quality.
🔹 Virtual → Physical Upsell
Virtual office members already trust the brand.
Converting even a small percentage into physical offices or part-time space can drive incremental EBITDA on an already-fixed cost base.
🔹 Marketing Beyond Word-of-Mouth
Word-of-mouth works — but it caps growth.
Basic improvements in:
Local SEO
Broker relationships
Direct corporate outreach
can move occupancy without heavy spend.
🔍 My Analysis:
This is a solid, operator-friendly acquisition, not a flashy growth story. The business has real cash flow, strong margins for the coworking sector, and a revenue mix dominated by private offices, which creates predictability. At ~3.8x EBITDA, the pricing is fair for a semi-absentee operation with existing management and lease visibility through 2028. The main risk is fixed rent, which means occupancy and pricing discipline matter, but this is an operational issue—not a structural flaw. With modest improvements in pricing, corporate sales, and basic marketing, incremental revenue should flow cleanly to EBITDA. Overall, this is a buy-right, operate-clean, compound-cash-flow deal best suited for an operator or disciplined buyer who values stability over hype.
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Success Story
Check out what one of our members recently accomplished :
Nicholas is making steady progress. He recently met with a business owner, but the seller went with another buyer before he even had a chance to review the financials. He’s now digging into a new opportunity—an Assisted Living Facility—but ran into challenges calculating the EBITDA. To get clarity, he reached out to our support team for help breaking down the P&L and is also pushing for a face-to-face meeting with the owner to better understand her motivations for selling.
He mentioned that the stress he used to feel is fading, thanks to how clear and structured the teaching has been.

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-Moran Pober
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