Debt Settlement Company with ~800 Active Clients 💳

Under the Radar Weekly Deals

The #1 Boring Biz Newsletter

👋 Hey folks,

Welcome to issue #6 of Under the Radar!

This week’s issue features:

  • 🪑 Commercial furniture distributor w/ $4M+ revenue

  • 💳 Debt settlement company w/ ~800 active clients

  • 💥 Collision repair biz w/ $1.2M net income in 2023

Let’s get into it.

Hot Deals 🔥

Analyses of the top deals we found across various marketplaces.

#1. Commercial furniture distributor with $4M+ revenue

🏷️ Asking Price: $1,794,430

📍 Location: Illinois

Overview: This growing commercial furniture distributor boasts over four decades of expertise in the food service furniture sector. With its stellar reputation, the business has seen consistent growth, culminating in a sales peak in 2023. It thrives on strong relationships with designers, architects, and a dedicated customer base. Strategic SEO efforts and a focus on customer satisfaction have streamlined its path to organic growth, steering clear of traditional cold-calling or paid advertising tactics.

Key Highlights

  • $4.1M revenue (2023)

  • $516K cash flow (2023)

  • SEO optimized website generates steady organic growth

  • Management expected to stay

Growth Avenues 🚀

  • In addition to expanding the business’s current product lines, there’s an opportunity to venture into new markets and diversify its product offerings

Potential Risks 🚩

  • Commercial furniture market can be highly sensitive to economic cycles. A downturn in the economy could lead to reduced spending by businesses on furniture and equipment, impacting sales

Questions❓

  • What is the current management structure like?

  • How many FTEs does the business have and what positions do they hold?

  • Does the company have existing contracts with designers, manufacturers, etc?

#2. Debt settlement company with ~800 active clients

🏷️ Asking Price: $1,600,000

📍 Location: Franklin County, OH

Overview: Since 2009, this credit card debt settlement organization with 5 FTEs has been assisting over 800 clients in managing and reducing their financial burdens through skilled debt negotiation. It operates with minimal owner involvement, focusing on providing practical financial solutions. With a solid foundation for recurring revenue and a streamlined operational model, this business offers a pathway to financial stability for its clients and a potentially reliable investment opportunity.

Key Highlights

  • $1.26M annual revenue

  • $433K annual cash flow

  • ~$185K annual EBITDA

  • 800+ active clients in the system (expected fees estimated at $2.25M over the next 4 years)

  • Sellers will provide 3-6 months of support

Growth Avenues 🚀

  • By hiring additional sales personnel and an energetic sales manager, the company is well-positioned for growth, given its current choice to maintain revenue levels without further expansion

Potential Risks 🚩

  • Some or all of the recurring revenue from existing clients could fall through post-sale

Questions❓

  • What roles do the current 5 FTEs hold?

  • How is the company currently acquiring new customers?

  • Why have the owners chosen not to expand the business further?

#3. Collision repair biz with $1.2M net income in 2023

🏷️ Asking Price: $4,800,000

📍 Location: Arizona

Overview: Located in one of Arizona's fastest-growing cities, this 8-year-old collision repair center has carved out a reputable niche in the automotive repair industry. Specializing in services that range from towing and automotive glass replacement to motorcycle repair and paintless dent repair for collision-related issues, the business has established a robust operation that deals exclusively through insurance claims.

The business works with all insurance companies but is not in contracts with any of them, giving them more pricing flexibility. They only use OEM parts (not used, salvaged or aftermarket) and focus more on increasing revenue per car versus bringing in more cars.

Key Highlights

  • 2023 revenue = $2.2M ($2.3M and $1.95M in 2022 and 2021)

  • 2023 net income = $1.25M ($1.23M and $935K in 2022 and 2021)

  • 50% of business from repeat customers, 20% from Google, and 30% from referrals

  • $381K FF&E included

  • An existing employee is trained and can handle operations

  • No licenses or certificates are needed to run the biz

Growth Avenues 🚀

  • While the business currently enjoys pricing flexibility by not being in contract with insurance companies, forming strategic partnerships or becoming a preferred provider for certain insurers could increase the volume of referrals

Potential Risks 🚩

  • Loss of a key subcontractor or changes in subcontractor loyalty could necessitate time-consuming searches for replacements, potentially incurring higher costs or operational delays

Questions❓

  • How reliable are the subcontractors it works with? Would it be difficult to find replacements if needed?

  • What exactly is included in the $381K of FF&E?

  • How many suppliers does the business have existing relationships with?

  • When does its current lease end and what’s the monthly rent?

Radar Picks 📡

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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.