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Commercial Painting & Construction Company w/ $500K+ Cash Flow 🎨
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey folks,
Welcome to issue #5 of Under the Radar!
This week’s issue features:
🏠 Sustainable custom home builder w/ $2.3M revenue
🎨 Commercial painting & construction company w/ $500K+ cash flow
👷🏻 Construction & siding contractor w/ steady YoY growth
Let’s get into it.
Hot Deals 🔥
Analyses of the top deals we found across various marketplaces.
#1. Sustainable customer home builder w/ $2.3M revenue
🏷️ Asking Price: $1,630,000
📍 Location: Wake County, NC
Overview: Established in 2008 in Wake County, NC, this custom home builder excels in creating sustainable luxury homes for an upscale market. Known for its green building practices and innovative designs, the company operates from a home-based setup, offering high margins and a strong project pipeline. The owner is retiring, but willing to stay on for 1 year to help with the transition.
Key Highlights ✅
$2.3M annual revenue
$846K annual cash flow
~$782K EBITDA
Existing pipeline of 40+ townhomes
Growth Avenues 🚀
Potential to expand operations to neighboring regions or states with growing markets for custom and sustainable homes
Potential Risks 🚩
Existing pipeline of 40+ townhomes could be terminated under new ownership (unclear if there’s a contract currently in place)
Questions❓
The listing only states 2 FTEs, is the majority of work outsourced?
What’s the current rent and when does the lease expire?
Where are new projects coming from? Owners network? Referrals?
#2. Commercial painting & construction company w/ $500K+ cash flow
🏷️ Asking Price: $1,500,000
📍 Location: Illinois
Overview: Operating for over 30 years in Illinois, this commercial painting and construction business specializes in apartment industry projects, boasting a strong customer network and a reputation for quality and reliability. With a focus on effective management and timely project completion, it offers services primarily through an in-house team, occasionally subcontracting for specialized tasks.
Key Highlights ✅
~$2.4M annual revenue
$525K annual cash flow
Seller financing available
Management expected to stay
Growth Avenues 🚀
Expand partnerships with real estate developers, property management companies, and architectural firms to become their go-to contractor for painting and construction services
Questions❓
What does the current management structure look like?
Why is the owner selling? Will they help with the transition?
How many FTEs does the business have? Are they expected to stay?
Does the business have a physical location? If so, what’s the rent?
#3. Construction & siding contractor w/ steady YoY growth
🏷️ Asking Price: $1,100,000
📍 Location: Westchester County, NY
Overview: Located in Westchester County, NY, this home-based contractor business and its sister company focus on both construction and specialized siding projects. With a streamlined operation that reduces overhead by managing from home, direct material delivery to sites, and employees using personal vehicles, the business emphasizes efficiency. The team of 6 employees is adept at handling day-to-day operations, allowing the owner a flexible management approach. Customer acquisition relies on a solid mix of manufacturer referrals (30%), architect referrals (30%), and previous customer referrals (40%), negating the need for listing services like Angie’s List.
Key Highlights ✅
$1.56M annual revenue
$422K annual cash flow
$194K annual EBITDA
Experienced & skilled team (6 FTEs)
Owner will help w/ transition for 6 months
Biz had record years in ‘22 & ‘23
Growth Avenues 🚀
Leverage paid search, social media advertising, and CRM marketing to increase visibility and attract new customers. Given the business's success with referral-based acquisition, integrating a robust digital marketing strategy could tap into new market segments
Potential Risks 🚩
Westchester County's affluent market likely attracts numerous contractors, increasing competition. Distinguishing the business from competitors, especially in specialized siding projects, requires continuous innovation and exceptional service
Questions❓
What is the breakdown of revenue between the contractor business and the sister siding company?
What’s the company’s average monthly burn rate?
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
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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.