Residential Remodeling Co. Listed at 2.2x SDE 🏠

Under the Radar Weekly Deals

Discover Top SMBs for Sale

👋 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:

  • 🛠️ Commercial maintenance biz w/ $1.7M annual SDE

  • 🏠 Residential remodeling co. listed at 2.2x SDE

  • 🛋️ Furniture wholesale biz w/ $1.67M annual SDE

Hot Deals 🔥

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

#1. Commercial maintenance biz w/ $1.7M annual SDE

🏷️ Asking Price: $4,000,000

📍 Location: Sarasota, FL 

Overview: This well-established commercial maintenance and remodeling business has been serving the area for over a decade. Specializing in repairs and remodels for retail stores, restaurants, banks, gas stations, and other commercial clients, the business provides a wide range of services, including plumbing, electrical, general contracting, and handyman services. Licenses for plumbing and electrical are included with the company, ensuring continued operations without reliance on the owner. The business is fully staffed with project managers, administrative support, and a rotating team of 10-20 technicians, all using their own tools and vehicles—keeping overhead costs low.

Key Highlights

  • ~$2.7M revenue

  • ~$1.7M annual SDE

  • $20K FF&E (included)

  • $10K inventory (included)

  • Leased RE ($3K/month)

Growth Avenues 🚀

  • Leverage existing expertise to target other industries such as healthcare facilities or educational institutions, which require ongoing maintenance.

  • Introduce maintenance plans or long-term service agreements with existing clients to secure predictable revenue streams.

Potential Risks 🚩

  • While the plumbing and electrical licenses stay with the business, the general contractor license will not. Ensure the GC license is not critical to ongoing operations.

  • The seasonal fluctuation of technicians (10-20) may lead to challenges in meeting demand during peak periods.

Questions❓

  • How critical is the general contractor license for ongoing projects, and what measures are needed to replace it?

  • Are there any key client contracts that require immediate renewal post-sale?

  • How are project managers and administrative staff compensated, and are they expected to stay post-sale?

#2. Residential remodeling co. listed at 2.2x SDE

🏷️ Asking Price: $1,600,000

📍 Location: Fairfax County, VA

Overview: This Northern Virginia-based residential remodeling business has been delivering high-quality kitchen and bathroom renovations for over 20 years. Renowned for its stellar reputation and customer-centric approach, the business completes approximately 15 kitchens and 25 bathrooms annually, with average project costs of $60,000 and $20,000, respectively. Operating from a home office, the business is relocatable within the DC metro area, making it an excellent opportunity for a buyer looking to enter or expand in this affluent market. The owner is retiring but is committed to providing training and support to ensure a smooth transition.

Key Highlights

  • ~$1.84M annual revenue

  • ~$716K annual SDE

  • $58K FF&E (included)

  • $5K inventory (included)

  • Holds “Class A” Contractors License

Growth Avenues 🚀

  • The business has grown primarily through word of mouth and referrals. Adding digital marketing, such as Google Ads, SEO, and social media campaigns, could attract new clients.

  • Northern Virginia’s high-income households and stable housing market provide an opportunity to tap into higher-end remodeling projects.

Potential Risks 🚩

  • Remodeling businesses are often impacted by economic downturns or shifts in discretionary spending.

  • The DC metro area is highly competitive, with several established design/build firms vying for market share.

Questions❓

  • Are there preferred vendors or suppliers for materials, and are those relationships transferable?

  • How are subcontractors sourced, and what agreements ensure consistent quality?

  • What percentage of projects come from repeat clients or referrals versus new customers?

#3. Furniture wholesale biz w/ $1.67M annual SDE

🏷️ Asking Price: $5,000,000

📍 Location: Florida

Overview: This contract furniture wholesale business has been supplying high-quality, ready-to-assemble seating and tables to corporate and commercial clients for 14 years. With a reputation for reliability, quality, and fast shipping, the company serves approximately 550 active dealers, many of whom cater to Fortune 500-1000 companies. The diverse client base includes well-known brands like Netflix and Hilton Hotels, as well as government agencies, spanning various sectors. Its streamlined operations, including sales driven by independent 1099 reps and logistics handled by a third-party warehouse, allow for semi-passive ownership. 

Key Highlights

  • ~$5.08M annual revenue

  • ~$1.67M annual SDE

  • $48K FF&E (included)

  • $507K inventory (not included)

  • 3 employees

Growth Avenues 🚀

  • Develop a dedicated e-commerce platform to allow direct sales to smaller businesses or co-working spaces, reducing dependency on dealers and creating a new revenue stream.

  • Strengthen relationships with the 550 active dealers by offering performance-based incentives or co-branded marketing efforts to boost sales volumes.

Potential Risks 🚩

  • While the current model keeps costs low, reliance on independent reps could pose challenges in maintaining consistent sales performance and alignment with the company’s goals.

  • The business depends on a third-party warehouse and streamlined logistics. Any disruption in these systems—due to rising costs, labor shortages, or supply chain issues—could impact operations and margins.

Questions❓

  • What are the terms of the third-party warehouse agreements, and are they flexible for scaling operations?

  • Are there any single customers or industries that account for a disproportionate share of revenue?

  • What are the supplier relationships like, and are there risks of pricing fluctuations or sourcing issues?

Other Hot Deals 🔥

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week’s featured tweet comes from Ben Kelly, who shares the details of acquiring a 30-year-old CPA firm—even without being a CPA himself. From creative deal terms to plans for streamlining operations, Ben highlights how to maximize returns in professional services acquisitions. 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.