Dry Cleaning Company w/ $490K Annual SDE 👔

Under the Radar Weekly Deals

The #1 Boring Biz Newsletter

👋 Hey fellow searchers,

Welcome to issue #25 of Under the Radar!

Before diving into this week’s deals, we're excited to introduce a new section called “Other Hot Deals 🔥.” Every week, this segment will spotlight additional SMB listings that didn’t make it into the main feature but are still worth your attention. Check it out below and let us know what you think!

Now, let’s dive into some deals!

This week’s issue features:

  • 💧 Hydro-excavation & construction services biz w/ $2.1M revenue

  • 👔 Dry cleaning company w/ $490K annual SDE

  • 🗣️ Home-based interpretation biz listed at 2.7x SDE

Hot Deals 🔥

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

#1. Hydro-excavation & construction services biz w/ $2.1M revenue

🏷️ Asking Price: $2,250,000

📍 Location: McIntosh County, OK

Overview: This hydro-excavation and construction services company has built a strong reputation since its inception in 2009. Originally focused on oilfield services, the company has expanded its offerings to include a broad range of environmental and construction services. The current owners, looking to retire, are committed to staying on for 6 to 12 months post-sale to ensure a smooth transition, helping introduce the buyer to key clients and employees, and to the inner workings of the business.

Key Highlights

  • ~$2.11M annual revenue

  • ~$949K annual SDE

  • Leased real estate (option to buy)

  • 6 employees

Growth Avenues 🚀

  • The business is well-positioned to extend its services into neighboring states like Texas and Arkansas, capitalizing on existing industry relationships and regional demand.

  • With low competition in the region, there’s significant potential to increase market share by expanding marketing efforts and leveraging the company’s strong reputation.

Potential Risks 🚩

  • The company’s revenue is closely tied to the performance of the construction and oilfield industries, which can be affected by economic fluctuations, regulatory changes, and shifts in energy prices.

  • Although competition is currently low, the entry of new competitors or shifts in industry demand could impact the company’s market position and pricing power.

Questions❓

  • How are local and regional market conditions (e.g., demand for hydro-excavation services) expected to evolve over the next 5 years?

  • What is the current state of the company’s equipment and vehicles?Additionally, what specific FF&E is included in the sale, if any?

  • How reliant is the company on its top five clients? What would be the impact of losing one or more of these clients?

#2. Dry cleaning company w/ $490K annual SDE

🏷️ Asking Price: $1,395,000

📍 Location: Montgomery County, MD

Overview: This upscale, eco-friendly dry cleaning business has been a staple in the community since 1985. With a well-established retail presence and a busy delivery route service, it boasts high customer satisfaction and minimal turnover. The current owner, a second-generation operator, is ready to retire but will provide training and support to ensure a smooth transition. Located in one of the wealthiest markets in Maryland, the business has great potential for continued growth under new ownership.

Key Highlights

  • ~$1.27M annual revenue

  • ~$490K annual SDE

  • 17 employees (including tailor)

  • Rated as a top Dry Cleaner in the area

  • Potential for seller financing

Growth Avenues 🚀

  • The business serves a region with exceptional income and growth demographics, and with new developments in the area, there’s significant potential to expand both the retail and delivery routes.

  • Enhancing the business's online presence and implementing a more robust digital marketing strategy could attract a younger, tech-savvy clientele and increase delivery route efficiency.

Potential Risks 🚩

  • The business’s success is closely tied to the wealth of the local market. Economic downturns or demographic shifts (e.g., remote work reducing demand for dry cleaning) could impact revenue.

  • The business relies on skilled staff, including an experienced tailor. Any turnover could disrupt operations and affect service quality.

Questions❓

  • What is the breakdown of the customer base by income level, age, and frequency of service use? How has this demographic shifted over the past five years?

  • What percentage of revenue is derived from retail dry cleaning versus delivery routes, tailoring, and other services?

  • What is the maintenance schedule for the current equipment, and are there any anticipated capital expenditures for equipment replacement or upgrades?

#3. Home-based interpretation biz listed at 2.7x SDE

🏷️ Asking Price: $1,500,000

📍 Location: Minnesota

Overview: Established in 2009, this home-based interpretation business has steadily grown by providing high-quality translation services across various sectors, including medical, education, corporate, and government. The business is well-regarded for its reliability and strong client relationships, which are secured by long-term contracts. With minimal overhead costs and efficient operations, the business is well-positioned for continued success. The current owners, seeking retirement, are dedicated to ensuring a smooth transition for the new owner.

Key Highlights

  • ~$1.86M annual revenue

  • ~$562K annual SDE

  • Long-term contracts in place

  • 402 employees

    • Some long-term to handle day-to-day

    • Translators are independent contractors

  • SBA financing available w/ $170K down

Growth Avenues 🚀

  • There’s significant potential to expand the client base in existing sectors (e.g., medical, corporate) and explore new industries such as legal or financial services.

  • Investing in advanced scheduling software, customer management systems, or AI-driven translation tools could streamline operations and enhance service delivery.

Potential Risks 🚩

  • Advances in automated or AI-powered translation services could impact demand for human interpreters, particularly for less complex or routine translation tasks.

  • The business relies heavily on independent contractors, which can present challenges in maintaining service quality and consistency. Any turnover among key contractors could disrupt operations.

Questions❓

  • How are independent contractors sourced, vetted, and managed to ensure consistent service quality?

  • What are the terms and lengths of the long-term contracts with key clients? Are there any clauses for early termination or renewal conditions that a buyer should be aware of?

  • How stable is the current workforce, and what are the potential risks associated with turnover among key personnel?

Other Hot Deals 🔥

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week’s featured tweet is from Chandler Reed, who shares six powerful steps to achieve passive business ownership. If you're aiming to build a business that runs without you, Chandler’s advice on scaling, delegating, and adopting an Executive Chairman mindset is a must-read. Check it out👇

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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.