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Asphalt Paving Company w/ $755K Annual SDE 🚧
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey fellow searchers,
Welcome to issue #22 of Under the Radar!
Let’s get right into it.
This week’s issue features:
🚜 Ag equipment sales & service biz w/ $8.8M annual revenue
🚧 Asphalt paving company w/ $755K annual SDE
👷🏽 General contracting services firm w/ $1.4M annual SDE
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Ag equipment sales & service biz w/ $8.8M annual revenue
🏷️ Asking Price: $2,000,000
📍 Location: Roanoke, VA
Overview: Established in 2006, this agricultural equipment sales and service company is renowned for its exceptional inventory and customer service. It operates from a well-equipped facility that is leased, and has built a loyal customer base supported by a dedicated and skilled team. The business is well-established with a strong market presence and offers a turnkey operation with potential for growth and diversification. The seller is offering 1 month of support/training to help with the transition.
Key Highlights ✅
~$8.76M annual revenue
~$1.22M annual SDE
$116K FF&E (included)
$172K inventory (included)
8 employees
Growth Avenues 🚀
Introducing advanced technology services like GPS mapping, soil testing, and drone surveillance can attract modern farmers and create new revenue streams.
Implementing mobile repair and maintenance units can provide on-site services, reducing downtime for clients and enhancing customer satisfaction.
Potential Risks 🚩
Fluctuations in agricultural commodity prices can impact farmers' purchasing power, potentially affecting the company’s sales.
Changes in consumer preferences and shifts towards sustainable farming practices might require the company to adapt its product offerings, which can be costly and complex.
Questions❓
What are the terms and duration of current supplier contracts, and how often are they reviewed and renegotiated?
What is the customer retention rate, and what strategies exist to maintain and improve customer loyalty?
What are the terms of employment contracts, and how does the company plan to retain key personnel post-sale?
#2. Asphalt paving company w/ $755K annual SDE
🏷️ Asking Price: $1,400,000
📍 Location: Bevard County, FL
Overview: This established asphalt paving company has a solid reputation for delivering high-quality paving and repair services. Founded in 2019, the company has developed strong relationships with major new construction builders and local utility companies. The business is supported by a capable manager and a skilled workforce, ensuring consistent, reliable results for a variety of projects including driveways, parking pads, walkways, and patch repairs. The seller will provide training for 2 weeks at no cost.
Key Highlights ✅
~$1.42M annual revenue
~$77K annual SDE
$653K FF&E (included)
$5K inventory (included)
6 employees (including manager)
Growth Avenues 🚀
Establish relationships with property management companies to become their preferred provider for asphalt maintenance and repair services across their managed properties.
Pursue government contracts for public infrastructure projects, including road repairs, public parking facilities, and park pathways. Obtaining the necessary certifications and building relationships with local government officials can help secure these contracts.
Potential Risks 🚩
Intense competition from other paving companies in the region could impact market share. Differentiation through superior service quality and unique offerings will be essential.
The company’s reliance on a small team of skilled employees can pose operational risks if key personnel leave. Cross-training staff and creating an attractive work environment can help retain talent.
Questions❓
Are the relationships with construction builders transferable to the new owner, and how does the owner plan to facilitate this transition?
What is the condition and age of the equipment included in the sale? Are there detailed maintenance records available?
What standard operating procedures are in place for project management and quality control?
#3. General contracting services firm w/ $1.4M annual SDE
🏷️ Asking Price: $3,500,000
📍 Location: Hillsborough County, FL
Overview: This general contracting company established in 2019 offers comprehensive construction services with a strong reputation for quality work. Founded by an owner with over 13 years of experience, the business is lender pre-qualified, ensuring financing options for buyers. The company operates with a skilled team of 3 and services are subcontracted. It has built solid relationships with key clients, providing services for residential and commercial projects, including renovations, new constructions, and maintenance.
Key Highlights ✅
~$4.53M annual revenue
~$1.44M annual SDE
98% commercial work
GBC or GC license needed
Owner works 25-30 hours/week
Growth Avenues 🚀
Enhance the company’s digital footprint with a robust online marketing strategy, including a professional website, social media engagement, and targeted online advertising to attract more clients.
Collaborate with property management firms to handle ongoing maintenance and renovation projects, ensuring a steady stream of smaller-scale, but consistent, projects.
Potential Risks 🚩
Economic downturns can reduce demand for construction services. Diversifying into maintenance and smaller-scale projects can provide a buffer during slow periods.
Dependence on subcontractors for certain projects can introduce risks related to quality control, timelines, and cost management. Ensuring reliable and vetted subcontractors is critical.
Questions❓
How does the company ensure quality control and manage timelines with subcontractors?
Are the relationships with major clients transferable to the new owner, and how does the owner plan to facilitate this transition?
How stable has the cash flow been over recent years, and are there any significant fluctuations that need explanation?
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week’s featured tweet comes from Matthias Smith, clarifying that SBA 7(a) loans don’t need to be fully collateralized. He highlights that deals often involve minimal collateral, focusing more on cash flow to repay the loan. This is vital for business buyers to understand when navigating SBA financing. Check it out👇
I had an interesting conversation the other day with a business buyer
The buyer was under the impression that SBA loans needed to be fully collateralized
The SBA 7(a) loan program requires that all available collateral is pledged up to the point at which the loan can be fully… x.com/i/web/status/1…
— Matthias Smith, CEO - Pioneer Capital Advisory LLC (@SBA_Matthias)
7:50 PM • Jul 26, 2024
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DISCLAIMER: This newsletter is for informational purposes only and should not be considered financial advice. It offers analyses of businesses without endorsing any specific financial actions. Readers are advised to do their own research and consult a professional before making investment decisions.