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Multiple location bakery w/ $8.56M annual revenue 🥐
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey fellow searchers,
Welcome to issue #29 of Under the Radar!
Let’s get right into it.
This week’s issue features:
🎄 Seasonal lighting biz w/ $491K annual SDE
🥐 Multiple location bakery w/ $8.56M annual revenue
🚙 Glass & mirror installation company selling at 3.1x SDE
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Seasonal lighting biz w/ $491K annual SDE
🏷️ Asking Price: $1,390,000
📍 Location: Goochland County, VA
Overview: This independently owned franchise has been operating for almost 8 years, specializing in outdoor lighting for upscale homeowners and local businesses. Offering a range of services like landscape, bistro, event, and holiday lighting, this mostly seasonal business provides flexibility for the owner. With a loyal customer base and year-over-year growth, it presents a profitable opportunity for an individual buyer or as an expansion for an outdoor services company. The seller will offer 2 weeks of training at no cost.
Key Highlights ✅
~$921K annual revenue
~$491K annual SDE
$448K FF&E (included)
7 FT employees
Growth Avenues 🚀
The business has already diversified its lighting options but could further expand into new services like outdoor sound systems or smart lighting solutions to meet evolving market demands.
Although primarily seasonal, offering maintenance or permanent landscape lighting services could generate off-season revenue and stabilize cash flow.
Potential Risks 🚩
As a mostly seasonal business, cash flow could be volatile, requiring careful financial planning during off-peak times.
While the company specializes in lighting, some competitors may offer outdoor lighting as a secondary service, potentially undercutting pricing or diverting customers.
Questions❓
How does the business manage cash flow during off-season months, and are there any plans to expand year-round services?
What is the customer retention rate, and what strategies are in place to maintain the loyal base?
How are the 9 full-time employees utilized during the seasonal slow period, and what measures are in place to retain staff?
#2. Multiple location bakery w/ $8.56M annual revenue
🏷️ Asking Price: $3,495,000
📍 Location: Des Moines, IA
Overview: This profitable bakery, with two locations in the Des Moines metro area has been thriving since its establishment in 2015. Offering dine-in, take-out, drive-through, online baked goods sales, and event catering, the business has built a strong local following. With 120 staff members, including a General Manager and Director of Operations, the owner maintains a semi-passive role, allowing for easy transition to new ownership. The owner is offering up to a year of support and training.
Key Highlights ✅
~$8.56M annual revenue
~$1.05M annual SDE
$958K FF&E (included)
10% seller financing available
Growth Avenues 🚀
Expanding into new areas or franchising the successful brand could significantly increase market reach.
Investing in social media campaigns and loyalty programs could enhance customer retention and attract new customers from surrounding areas.
Potential Risks 🚩
Managing 120 employees across two locations can be complex, especially in maintaining consistent service quality and staff retention.
With multiple locations and a diverse offering of services, maintaining streamlined operations, particularly after expansion or franchising, could pose challenges.
Questions❓
What are the lease terms for the current locations, and are there options for renewal or expansion?
How is inventory and cost management handled across both locations?
What role do the General Manager and Director of Operations play in daily management, and how will their responsibilities transfer to new ownership?
#3. Glass & mirror installation company selling at 3.1x SDE
🏷️ Asking Price: $8,000,000
📍 Location: Southwest Florida
Overview: This Florida-based glass and mirror installation business specializes in custom glasswork for new builds, renovations, remodels, and property flips. With a team of highly skilled craftsmen, the company has become the go-to provider for builders and homeowners in Southwest Florida. The business has strong relationships with contractors and is well-positioned in a growing market, thanks to Florida’s increasing population and real estate development.
Key Highlights ✅
~$6.32M annual revenue
~$2.56M annual SDE
$458K FF&E (included)
$75K inventory (included)
Growth Avenues 🚀
Strengthening existing relationships with builders and forging new partnerships with real estate developers could lead to consistent, high-volume contracts.
Tapping into the surge of new construction and remodeling projects driven by the state's population growth and demand for custom, high-end homes could fuel further growth.
Potential Risks 🚩
While the company has strong relationships with builders, increased competition from other glass installation firms or larger contractors expanding into the market could pressure margins.
With inventory playing a key role in operations, any disruptions in sourcing glass or mirror materials, particularly custom products, could delay projects and impact customer satisfaction.
Questions❓
How scalable is the business, and what additional capital investments would be required to expand into new regions or services?
How many full-time employees does the business have, and how are subcontractors utilized for projects?
How strong are the relationships with builders, and are these partnerships transferable to new ownership?
Other Hot Deals 🔥
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week’s featured tweet from Heather Endresen breaks down how SBA lenders approach the Debt Service Coverage Ratio (DSCR) differently, from tax treatments to add-backs and seller note payments. This insightful thread shows why understanding each lender's unique process is key to navigating SBA loans successfully.👇
I could send the same deal facts to 8 different lenders and ask each of them to tell me what the Debt Service Coverage Ratio (DSCR) is, and I'd get back 8 different ratios.
That is because each SBA lending bank has their own way of treating different elements of the equation. 🧵
— Heather Endresen (@EndresenHeather)
4:26 PM • Sep 3, 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.