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Asphalt paving company w/ $755K annual SDE 🛣️
Under the Radar Weekly Deals
Discover Top SMBs for Sale
👋 Hey fellow searchers,
Hope you had a great weekend and welcome back to Under the Radar!
Let’s get right into it.
This week’s issue features:
⛰️ Land surveying firm w/ $852K annual SDE
🛣️ Asphalt paving company w/ $755K annual SDE
👷🏽 Roofing biz w/ $3.6M annual revenue
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Land surveying firm w/ $852K annual SDE
🏷️ Asking Price: $1,300,000
📍 Location: Austin, TX
Overview: This Central Texas land surveying business has a 30-year track record, specializing in high-demand services such as boundary, design, construction surveying, LiDAR mapping, and quality control. Serving a broad client base of engineering firms, land developers, and municipalities, the company operates with a dedicated team of 20, including skilled managers and field technicians. The owner is preparing for retirement and is offering a year of transition support.
Key Highlights ✅
~$3.23M 2023 revenue, up 29% YoY
~$852K 2023 SDE, up 215% YoY
20 employees (including mgmt)
1 year training + 10% seller note
Leased office space (3,100 sqft)
Growth Avenues 🚀
Adding drones and GIS to streamline processes and expand service offerings could improve project efficiency and attract new clients.
Introducing hydrographic surveying would allow the company to service waterfront projects, opening new revenue streams in areas like water management and environmental planning.
Potential Risks 🚩
The current owner has a semi-hands-on role in survey approvals and client oversight. Ensuring client and team continuity post-transition will be essential.
The business relies heavily on local construction and development markets. A downturn in regional development could impact project demand and revenue.
Questions❓
What are the current equipment conditions, particularly for LiDAR technology, and are any upgrades expected soon?
How dependent is the business on the current owner’s relationships, and what measures are in place to retain these connections?
What caused 2023 SDE to spike and is this level sustainable?
#2. Asphalt paving company w/ $755K annual SDE
🏷️ Asking Price: $1,400,000
📍 Location: Brevard County, FL
Overview: This established asphalt paving company has built strong relationships with large new construction builders and local utility companies, providing a range of paving services. With expertise in community roads, driveways, walkways, and patch repairs, the business benefits from a steady client base and a reliable workforce. It operates with $653,000 in equipment, all included in the sale. This opportunity is suited for both owner-operators and investors looking for a turnkey operation.
Key Highlights ✅
~$1.42M annual revenue
~$755K annual SDE
$653K FF&E (included)
6 employees (5 FT + 1 manager)
Growth Avenues 🚀
Market driveway and pathway paving services to residential neighborhoods and gated communities.
Offer specialized asphalt repair services, including preventative maintenance, to reduce costs for customers and attract long-term contracts.
Potential Risks 🚩
The significant investment in equipment requires regular upkeep. Major repairs or replacements could affect cash flow.
With only six employees, scaling operations would require careful workforce planning to avoid skill shortages.
Questions❓
How stable are the relationships with key construction clients, and are there contracts in place?
What percentage of revenue comes from new construction projects versus utility repair work?
What is the typical project backlog, and how is client demand managed during high-volume periods?
#3. Roofing biz w/ $3.6M annual revenue
🏷️ Asking Price: $2,100,000
📍 Location: Richland County, OH
Overview: This roofing business has served its market for 13 years, known for combining efficient project management with a customer-focused approach. Leveraging advanced technology and established partnerships, the company has maintained a consistent financial performance in a competitive industry. With minimal overhead and reliable cash flow, it provides a solid foundation for future growth opportunities in the roofing sector.
Key Highlights ✅
~$3.68M annual revenue
~$812K annual SDE
$131K FF&E (included)
Leased RE ($3,200/month)
Growth Avenues 🚀
Expanding services beyond roofing, such as adding gutter or siding installations, could attract more clients and drive revenue growth.
Building on the company’s advanced tech integration, further digitizing project management and client interactions could streamline processes and improve customer satisfaction.
Potential Risks 🚩
Revenue may fluctuate with seasonal weather patterns, potentially creating uneven cash flow, especially during slower months.
Expanding or upgrading the current technology systems could lead to additional costs and require specialized knowledge for smooth implementation.
Questions❓
How many employees does the business have and what are their roles?
What technology systems are currently in use, and how do they contribute to operational efficiency?
What specific roles and responsibilities does the current owner fulfill, and what is the plan for transitioning these duties?
Other Hot Deals 🔥
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week’s featured tweet from @SMB_Attorney covers essential insights into financing down payments when buying a business. From SBA requirements and seller financing to bringing in third-party investors, the thread offers a quick breakdown of funding strategies—highlighting options like “standby seller notes” and investor support for larger deals. If you’re navigating financing for an acquisition, this is a must-read! Check out the full thread for practical advice. 👇
How do down payments work when buying a business?
Following up on yesterday’s post about buying a business the right way, I’ve got tons of these questions in my DMs:
How do down payments work?
Can they be financed by investors?
What are the SBA rules around this?
Do I… x.com/i/web/status/1…
— SMB Attorney (@SMB_Attorney)
11:45 AM • Oct 23, 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.