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Commercial Glass Installation Biz w/ 85% Customer Retention 🪟
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey fellow searchers,
Welcome to issue #26 of Under the Radar!
Let’s get right into it.
This week’s issue features:
💰 Tax & bookkeeping practice w/ $1.2M annual SDE
🪟 Commercial glass installation biz w/ 85% customer retention
🧼 Commercial cleaning company w/ $750K annual revenue
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Tax & bookkeeping practice w/ $1.2M annual SDE
🏷️ Asking Price: $1,995,000
📍 Location: Eugene, OR
Overview: This well-established tax and bookkeeping practice has served clients since 1970. The business boasts a strong and diverse client base, with approximately 900 individual tax returns and 345 business tax returns handled annually. The practice operates from a leased office space that includes a lobby, five offices, two restrooms, and a breakroom, with the lease expiring in 2026.
Key Highlights ✅
~$1.69M annual revenue
~$1.19M annual SDE
1,400+ clients
Growth Avenues 🚀
There is an opportunity to offer additional financial services, such as advisory or payroll services, which could further increase revenue and deepen client relationships.
Implementing a more aggressive online marketing strategy, including SEO and digital advertising, could attract younger, tech-savvy clients and grow the practice’s footprint.
Potential Risks 🚩
As with any transition, maintaining the trust and satisfaction of existing clients is crucial. A new owner will need to ensure continuity in service quality and client relationships.
The tax and bookkeeping industry can be highly competitive. Local firms or online services might offer lower prices, potentially affecting client retention.
Questions❓
What strategies are in place to ensure high client retention rates, especially during the ownership transition?
How many employees are currently on staff, and what are their specific roles and responsibilities? Are there any key employees critical to the practice’s operations?
What are the specific day-to-day responsibilities of the current owner, and how easily can these be transferred to a new owner?
#2. Commercial glass installation biz w/ 85% customer retention
🏷️ Asking Price: $3,450,000
📍 Location: Phoenix, AZ
Overview: This established B2B commercial glass and glazing business has been a trusted provider since 2010, specializing in large-scale projects for hospitals, schools, office parks, and car dealerships. With a strong 85% repeat customer rate, the business benefits from stable, long-term relationships and a solid reputation in the industry. It operates from a 7,700 sqft. facility that includes a well-equipped fabrication shop and furnished offices. The seller is offering 10% owner financing and is willing to stay on for 2-3 years to ensure a smooth transition.
Key Highlights ✅
~$4.73M annual revenue
~$960K annual SDE
85% repeat customer base
Work backlog of $4.2M
$801K FF&E (included)
12 employees (including management)
Growth Avenues 🚀
The company currently focuses exclusively on commercial clients but sees significant growth potential in entering the residential market.
Form strategic partnerships with construction firms and architects to secure more consistent, high-value projects.
Potential Risks 🚩
The business’s reliance on large commercial projects means revenue can fluctuate based on the availability and timing of these projects.
Finding and retaining skilled glazers and installers can be difficult, particularly if the business expands into new markets like residential.
Questions❓
What is the average duration of the projects in the backlog, and are these contracts secure with no foreseeable risks of cancellation?
Who are the key suppliers, and what are the terms of these relationships? Are there any risks of supply chain disruptions?
What percentage of revenue comes from the top clients, and is there a risk of over-reliance on any single client or sector?
#3. Commercial cleaning company w/ $750K annual revenue
🏷️ Asking Price: $1,200,000
📍 Location: Onondaga County, NY
Overview: This home-based commercial cleaning business is renowned for its customer-centric approach, consistently delivering detailed services that have earned it a 5-star Google rating. Serving a diverse clientele in the retail and commercial sectors, the business operates seamlessly with a dedicated team and well-maintained equipment. The business has built a strong online presence with a lead-generating website, ensuring a positive first impression and ongoing client engagement. The sellers are offering seller financing and 4 weeks of support and training.
Key Highlights ✅
~$750K annual revenue
~$400K annual SDE
$10K FF&E (included)
$5K inventory (included)
32 employees
Growth Avenues 🚀
Introduce services like post-construction cleaning, hazardous material cleanup, or deep cleaning for industrial facilities to attract higher-paying clients.
Launch a referral program incentivizing current clients to bring in new business, expanding the client base through word-of-mouth.
Potential Risks 🚩
If a significant portion of revenue comes from a few large clients, losing one could severely impact the business. Diversifying the client base is crucial.
As the business grows, the home-based model may face limitations in managing a larger workforce and handling increased logistical demands, potentially requiring investment in larger facilities.
Questions❓
What is the duration of the existing client contracts, and are there any risks of non-renewal?
What specific strategies are used to maintain the 5-star Google rating, and how effective has the website been in generating new leads?
What are the current owner's day-to-day responsibilities, and how easily can these be transferred to a new owner?
Other Hot Deals 🔥
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week’s featured tweet from Ben Tigg shares six key lessons learned from buying and running a multi-million dollar business remotely. From picking the right business to embracing challenges, Ben’s insights are a must-read for anyone looking to step into business ownership. Check it out below👇
Last year, I bought a multi-million dollar business...operating it remotely from another state....and in an industry I had no prior experience in. 😱
6 lessons learned:
1. Buy the right type of business for YOU. 'Right' means something different for everyone but this is what I… x.com/i/web/status/1…
— Ben Tiggelaar 🟠 (@bentigg)
9:55 PM • Jul 17, 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.