Online Auction Platform w/ $2M Annual Revenue 💰

Under the Radar Weekly Deals

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👋 Hey fellow searchers,

Hope you had a great weekend and welcome back to Under the Radar!

Let’s get right into it.

This week’s issue features:

  • 📦 24/7 delivery biz w/ $554K annual SDE

  • 💰 Online auction platform w/ $2M annual revenue

  • 💨 HVAC firm w/ $511K annual SDE

Hot Deals 🔥

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

#1. 24/7 delivery biz w/ $554K annual SDE

🏷️ Asking Price: $1,500,000

📍 Location: Wisconsin

Overview: This 24/7 delivery service in Wisconsin specializes in transporting critical and sensitive items, operating with a fleet of vehicles that accommodate items up to van-size. Known for its reliable, around-the-clock service, the business has built a reputation for flexibility and dependability in meeting clients’ urgent delivery needs. The owners currently manage the business part-time and are planning to retire, offering four weeks of training to ensure a smooth transition for the new owner.

Key Highlights

  • ~$1.15M revenue

  • ~$554K annual SDE

  • $281K FF&E (included)

  • 5 employees

Growth Avenues 🚀

  • Increasing the number of vehicles and drivers would enable the business to handle more deliveries and broaden service areas.

  • Implementing a marketing strategy to reach businesses and local clients could build brand recognition and further drive customer acquisition.

Potential Risks 🚩

  • Vehicle upkeep, repairs, and replacements could lead to substantial operational expenses, especially as the business grows.

  • Maintaining a reliable, around-the-clock workforce in a tight labor market could present staffing challenges, particularly if expansion is a goal.

Questions❓

  • What percentage of revenue is generated from the business’s top clients, and are there contracts in place with these clients?

  • What is the average age, condition, and maintenance history of the vehicles in the fleet?

  • How are delivery rates set, and are there any opportunities to increase pricing or optimize routes for greater profitability?

#2. Online auction platform w/ $2M annual revenue

🏷️ Asking Price: $1,400,000

📍 Location: Southwestern Idaho

Overview: This well-established online auction platform has been a leader in business liquidation auctions since 2015. Known for its strong customer base of over 18,000 loyal users, the site specializes in connecting businesses undergoing liquidation—such as retail, restaurant, and bankruptcy sales—with buyers seeking affordable assets. The auction platform’s user-friendly interface and focus on customer service have built a trusted brand with steady weekly consignment auctions, especially in the restaurant sector. With 6,920 sq. ft. of leased space available to buy, lease, or lease-option, the business offers flexibility for new ownership.

Key Highlights

  • ~$2.0M annual revenue

  • ~$540K annual SDE

  • $70K RE (included)

  • $5K inventory (included)

  • 5 employees (3FT, 2 contract)

Growth Avenues 🚀

  • Adding additional categories, such as estate sales or industrial equipment auctions, could broaden the customer base and attract new buyers and sellers.

  • Launching a mobile app or improving mobile site capabilities would make it easier for users to participate in auctions, attracting a larger, tech-savvy audience.

Potential Risks 🚩

  • As an auction business, revenue may fluctuate with economic conditions, as demand for liquidation auctions may increase during downturns but stabilize in strong markets.

  • As a technology-based business, the site must maintain up-to-date functionality to avoid performance issues or cybersecurity risks, both of which could impact user trust.

Questions❓

  • How is the platform maintained, and what costs are associated with regular updates and cybersecurity?

  • What percentage of revenue is generated from repeat buyers, and are there any loyalty programs in place?

  • How many registered users are actively participating in auctions, and how does user engagement vary by auction type?

#3. HVAC firm w/ $511K annual SDE

🏷️ Asking Price: $1,499,000

📍 Location:

Overview: This 51-year-old HVAC business specializes in air quality services and boasts a loyal, primarily commercial client base. Approximately 80% of revenue comes from projects with schools, universities, banks, shopping centers, condos, hospitals, and government buildings. With over $11 million in contracted work already lined up for 2025, the business offers a strong foundation for continued success. The seller is open to staying on for an extended period to qualify the business with their license, ensuring a smooth transition. Real estate, consisting of a 2,412 sq. ft. office and warehouse, is available for purchase separately at $600,000.

Key Highlights

  • ~$4.44M annual revenue

  • ~$511K annual SDE

  • $75K FF&E (included)

  • $4K inventory (included)

  • 8 employees

  • $400K seller financing

Growth Avenues 🚀

  • Build on the existing reputation and relationships in the commercial sector to target additional industries, such as hospitality or industrial facilities

  • Develop a digital marketing strategy, including a revamped website and SEO campaigns, to attract new commercial and residential clients.

Potential Risks 🚩

  • Successfully delivering on the $11M in 2025 contracts will require maintaining efficiency, workforce capacity, and operational quality.

  • Retaining and recruiting skilled HVAC technicians may be difficult in a competitive labor market, especially as the business grows.

Questions❓

  • How are the $11M in 2025 contracts structured, and are there any contingencies or risks associated with fulfillment?

  • What are the specific responsibilities of the seller, and how will these be transitioned to the new owner?

  • What is the breakdown of revenue by client type (e.g., schools, hospitals, government contracts)?

Other Hot Deals 🔥

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week’s featured tweet comes from Sam Rosati, who reflects on the balance between risk-taking and experience in SMB acquisitions. Should you go all-in while you’re young, or wait until you’re “ready”? Sam’s thought-provoking take challenges the conventional wisdom of playing it safe. 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.