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Commercial & residential fencing co. w/ $923K annual SDE 🪚

Under the Radar Weekly Deals

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👋 Hey fellow searchers,

Welcome to issue #30 of Under the Radar!

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Now, let’s get into it.

This week’s issue features:

  • 🔩 Heavy duty equipment assembler w/ $14.7M annual revenue

  • 🪚 Commercial & residential fencing co. w/ $923K annual SDE

  • 🚙 Contracting & glass biz w/ $4.2M annual revenue

Hot Deals 🔥

Analyses of the best deals we found across top marketplaces and brokerages.

#1. Heavy duty equipment assembler w/ $14.7M annual revenue

🏷️ Asking Price: $4,495,000

📍 Location: California

Overview: This niche West Coast business specializes in assembling custom heavy-duty equipment for customers across the Western U.S. and Canada. Established in 1997, the company is well-known for delivering high-quality products tailored to customer specifications, leading to a strong base of repeat clients. With a team of 16 experienced employees, the business handles six custom builds per month and also generates revenue from parts, services, and partial units.

Key Highlights

  • ~$14.7M annual revenue

  • ~$1.27M annual SDE

  • $154K FF&E (included)

  • $1.9M inventory (included)

  • 16 employees (including management)

  • 3 owners involved

Growth Avenues 🚀

  • Developing additional product lines, such as related heavy-duty equipment or service offerings, would attract new clients and diversify revenue streams.

  • By increasing production capacity through investment in new machinery or hiring more skilled employees, the business could handle a larger volume of orders, thereby increasing profitability.

Potential Risks 🚩

  • The business relies heavily on skilled employees with years of experience. Labor shortages or the loss of key staff members could impact production timelines and quality.

  • The business operates out of a leased 22,050 sq. ft. facility. Any changes to lease terms or challenges in renewing the lease could affect operations or necessitate relocation.

Questions❓

  • How are relationships with key clients and builders structured, and are these relationships transferable to new ownership?

  • What role do the current owners play in day-to-day operations, and what is the plan for a smooth transition post-sale?

  • How many full-time employees are involved in the assembly process, and what is the plan for retaining key staff members post-sale?

#2. Commercial & residential fencing co. w/ $923K annual SDE

🏷️ Asking Price: $3,250,000

📍 Location: Florida

Overview: This established Florida-based fencing company specializes in both commercial and residential projects and has been a leader in the industry for over two decades. Known for its quality workmanship and strong reputation, the business operates with a dedicated management team that will remain post-sale. It presents a significant opportunity for statewide expansion, given its solid foundation and strong market presence.

Key Highlights

  • ~$3.48M annual revenue

  • ~$923K annual SDE

  • Seller financing available

Growth Avenues 🚀

  • The business has room to grow throughout Florida. With its strong reputation, opening new branches in other cities could significantly increase revenue.

  • Investing in SEO, social media, and digital marketing could increase visibility and lead generation, especially among residential clients.

Potential Risks 🚩

  • The fencing industry is competitive, with local contractors potentially undercutting prices, which could put pressure on margins.

  • Fluctuations in the prices of fencing materials, such as wood, vinyl, or metal, could increase costs and affect profitability.

Questions❓

  • What portion of revenue comes from commercial vs. residential clients, and how has this changed over time?

  • How many full-time employees does the business have, and are subcontractors utilized for any projects?

  • What additional investment would be required to expand the company statewide?

#3. Contracting & glass biz w/ $4.2M annual revenue

🏷️ Asking Price: $2,350,000

📍 Location: Massachusetts

Overview: This well-established contracting and glass company has been serving residential and commercial clients for over 60 years. Specializing in custom glass fabrication, home finishing products, and emergency storm repairs, the business operates out of a showroom and fabrication site. With a strong reputation in southern Massachusetts, the company is poised for expansion into the greater Boston area. The current owner operates with minimal advertising, and there’s significant growth potential by expanding the sales team.

Key Highlights

  • ~$4.23M annual revenue

  • ~$786K annual SDE

  • Fleet of vehicles included

  • Leased real estate

Growth Avenues 🚀

  • With only one sales representative, a new owner could substantially increase revenue by adding more sales personnel to reach untapped markets.

  • The business has thrived with minimal advertising. Investing in marketing strategies, such as digital marketing or local partnerships, could attract new clients and drive growth.

Potential Risks 🚩

  • Expanding the business would likely require investments in personnel, equipment, and marketing, which could strain financial resources in the short term.

  • As the business operates in both residential and commercial markets, any downturns in construction or property improvements could affect revenue.

Questions❓

  • What is the condition and age of the service fleet, and are there any upcoming maintenance or replacement costs?

  • How diversified is the company’s supplier base, and what contingency plans are in place for supply chain disruptions?

  • How are client relationships maintained post-project, and are there opportunities to offer ongoing maintenance or service contracts?

Other Hot Deals 🔥

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week’s featured tweet from Boilerplate CPA breaks down the concept of unit economics—a powerful framework to help entrepreneurs understand profitability without diving deep into GAAP accounting. By focusing on key metrics like customer lifetime value, employee costs, and acquisition expenses, this thread simplifies how to assess your business's financial health.👇

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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.