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Metals Recycling Company w/ $1.1M Annual SDE ♻️
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey fellow searchers,
Welcome to issue #27 of Under the Radar! It’s Labor Day, so let’s give a shoutout to the unsung heroes behind these SMBs! 🇺🇸💪
Quick Trivia: Do you know which year Labor Day became a national holiday? (Answer at the end!)
A. 1800
B. 1917
C. 1923
D. 1894
Now, let’s dive into this week’s deals.
This week’s issue features:
🛠️ Residential & industrial remodeling biz w/ $5.7M revenue
♻️ Metals recycling company w/ $1.1M annual SDE
🛟 Pool renovation & repair biz serving 350-400 pools/year
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Residential & industrial remodeling biz w/ $5.7M revenue
🏷️ Asking Price: $3,500,000
📍 Location: Chicago, IL
Overview: This multi-faceted remodeling and design-build company has been serving the Chicagoland area for over 30 years, handling a wide range of residential and industrial projects. Known for quality craftsmanship and exceptional service, the company has earned an A+ BBB rating and over 3,000 repeat clients. Operating out of a leased showroom (also available for sale) with additional office and warehouse space, the seller is open to partial financing and will provide two weeks of support and training to ensure a smooth transition.
Key Highlights ✅
~$5.69M annual revenue
~$741K annual SDE
$613K FF&E (included)
$168K inventory (included)
3,000+ repeat clients
Growth Avenues 🚀
Expanding services beyond the current Chicagoland area could open new revenue streams. Focusing on neighboring states or underserved local communities could be profitable.
Strengthening relationships with commercial and industrial clients can diversify income streams. Offering specialized services tailored to these clients could help differentiate the business in a competitive market.
Potential Risks 🚩
The presence of other established contractors in the area may limit the company’s ability to capture additional market share. A heavy reliance on repeat clients may hinder efforts to expand the customer base.
The construction and remodeling industry is often vulnerable to economic downturns, which can lead to reduced spending on non-essential projects.
Questions❓
What percentage of revenue comes from repeat clients, and how has this changed over time?
How many employees are there, and what are their roles? Are there any key employees critical to operations?
What existing customer and supplier contracts are in place, and what are their terms?
#2. Metals recycling company w/ $1.1M annual SDE
🏷️ Asking Price: $3,500,000
📍 Location: Pennsylvania
Overview: This established metals recycling business has been a market leader since 1948, specializing in non-ferrous metals with unique expertise in recovering copper from insulated wire. The company also offers dumpster/container services through an affiliate company also included in the sale. The business operates with a strong team, holds an excellent regional reputation, and is located near a major metropolitan area. The owners are willing to remain through the transition period and thereafter if desired.
Key Highlights ✅
~$20.39M annual revenue
~$1.10M annual SDE
$2M inventory (average value)
$2.5M FF&E (replacement value)
20 employees (excluding 3 owners)
Option to purchase $3M real estate
Growth Avenues 🚀
Forming alliances with demolition companies, manufacturers, or municipal waste services could secure a steady supply of scrap materials and expand the customer base.
Investing in advanced sorting and processing technology could increase efficiency and reduce labor costs, allowing the business to process more material at a lower cost.
Potential Risks 🚩
Investing in advanced sorting and processing technology could increase efficiency and reduce labor costs, allowing the business to process more material at a lower cost.
The business is highly dependent on the prices of non-ferrous metals, which are subject to global market fluctuations. A significant drop in metal prices could reduce profitability and cash flow.
Questions❓
What are the specific terms of the affiliated dumpster/container service, and how integral is it to the overall business model?
What is the age and condition of the equipment, and how often is maintenance performed?
How are the roles and responsibilities distributed among the 20 employees, and what is the plan for retaining key staff post-sale?
#3. Pool renovation & repair biz serving 350-400 pools/year
🏷️ Asking Price: $2,100,000
📍 Location: Broward County, FL
Overview: This well-established pool and spa renovation and repair business has been successfully operating for years, specializing in resurfacing, deck and walkway installations, equipment repairs, and leak detection. The business handles no new construction—focusing instead on remodeling (70%), repairs (20%), and leak detection (10%). With a strong team, including a general manager and skilled mechanics, the business primarily serves residential clients (80%). The seller is retiring but willing to assist in the transition.
Key Highlights ✅
~$3.96M annual revenue
~$701K annual SDE
Serves 350-400 pools/year
Average job size of ~$10K
5 employees (+ 3 sub-crews)
Growth Avenues 🚀
Extending services to neighboring counties or expanding the commercial client base could generate additional revenue.
Investing in digital marketing, enhancing the online presence, and utilizing customer referral programs could drive more business, particularly in untapped residential areas.
Potential Risks 🚩
The pool and spa industry can be subject to seasonal fluctuations, particularly in a market like Florida. A downturn during the off-season could affect cash flow.
The presence of other established pool and spa service providers in the region could limit the business's ability to expand its market share.
Questions❓
How are customer relationships managed, and what is the average customer retention rate?
What are the specific terms of the subcontractor agreements, and how integral are they to operations?
How dependent is the business on the current general manager, and what is the plan for continuity if they were to leave?
Other Hot Deals 🔥
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week’s tweet highlights how a simple, yet powerful strategy led to an incredible $11.6 million return on a $2.9 million investment in just two years. CoFounders Nik breaks down his FIND framework - showing that sometimes the best strategies are the simplest. Steal this blueprint for your next business venture!👇
I thought buying businesses off-market would be a good investment
But I didn't know it would return $11.6 million after ~ two years…
Here’s how we used the FIND framework to turn $2.9 million into $11.6 million (so simple it's dumb. YOU SHOULD STEAL THIS): x.com/i/web/status/1…
— CoFounders Nik (@CoFoundersNik)
5:32 PM • Aug 21, 2024
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Trivia Answer
D. 1894
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.