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Security Company w/ 20+ Long-Term Client Contracts 🚨

Under the Radar Weekly Deals

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The #1 Boring Biz Newsletter

👋 Hey folks,

Welcome to issue #16 of Under the Radar!

Let’s get right into it.

This week’s issue features:

  • 🏊🏼‍♂️ Pool service and construction biz w/ $3M annual revenue

  • 🚨 Security company w/ 20+ long-term client contracts

  • 👨🏽‍🔧 Service and repair biz w/ $315K annual SDE

Hot Deals 🔥

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

#1. Pool service and construction biz w/ $3M annual revenue

🏷️ Asking Price: $925,000

📍 Location: Fairfield County, CT

Overview: This well-established swimming pool service, retail, and construction business has built a robust reputation and a loyal customer base. The company serves a diverse mix of residential and commercial clients and operates from a well-maintained, over 3,000 sq. ft. facility. The owner will lease the premises to the buyer under favorable terms, ensuring continuity of operations. An experienced and skilled workforce with a deep understanding of the industry is committed to maintaining high standards of service and customer satisfaction. The owner is now retiring, providing a prime opportunity for a new entrepreneur to take over a profitable and growing enterprise.

Key Highlights

  • ~$3M annual revenue

  • ~$450K annual cash flow

  • ~$350K annual EBITDA

  • $350K FF&E (included)

  • 275+ recurring service clients

  • 12 FTEs

Growth Avenues 🚀

  • Forge alliances with real estate agents, home builders, and landscapers to create a referral network that consistently brings in new business

  • Develop an e-commerce site for retail sales of pool supplies, accessories, and maintenance products to cater to a broader audience beyond the local market

Potential Risks 🚩

  • The business may experience seasonal fluctuations, with peak activity during warmer months and a potential slowdown in winter

  • Transitioning ownership may present challenges if the business relies heavily on the current owner’s relationships, expertise, and management style

Questions❓

  • What’s the breakdown of the customer demographics, including residential vs. commercial clients, and client retention rates?

  • How does the business manage seasonality, and what strategies are in place to maintain cash flow during off-peak periods?

  • What marketing or promotional activities are currently being undertaken to attract new clients and retain existing ones?

#2. Security company w/ 20+ long-term client contracts

🏷️ Asking Price: $1,900,000

📍 Location: Rockwall County, TX

Overview: This security company specializes in both armed and unarmed security services and has established itself as a leading provider for private schools across the state. The business has built a solid reputation and a strong client base, ensuring steady revenue streams and promising future growth. The business operates with a team of experienced and licensed security personnel dedicated to maintaining high standards of safety and professionalism. The owner is seeking to retire, providing a lucrative opportunity for a new entrepreneur to step into a thriving industry.

Key Highlights

  • ~$3.86M+ annual revenue (projecting $6M for 2024)

  • ~$533K annual cash flow

  • 20+ long-term client contracts

  • Owner or manager needs to be licensed

  • Veteran-owned

Growth Avenues 🚀

  • Introduce additional security services such as event security and executive protection to diversify revenue streams

  • Form relationships with educational institutions, corporations, and real estate developers to create a referral network and drive business growth

Potential Risks 🚩

  • The security industry is competitive, and new entrants or aggressive strategies by existing competitors could erode market share

  • The business’s reliance on a few major contracts with private schools could pose a risk if these contracts are not renewed

Questions❓

  • How does the business handle security personnel training and certification to ensure compliance with state regulations?

  • What is the current status of all client contracts, and what are their renewal terms?

  • How many employees does the business have, and what is the breakdown between full-time, part-time, and contracted staff?

  • What is the current organizational structure, and are there any key employees whose retention is critical to the ongoing success of the business?

#3. Service and repair biz w/ $315K annual SDE

🏷️ Asking Price: $899,000

📍 Location: Tucson, AZ 

Overview: This well-established service and repair company has been a leading provider in Tucson and Southern Arizona for decades. Specializing in a variety of repair services, the company caters to a broad mix of residential and commercial clients. The business operates from a well-maintained facility that supports its diverse service offerings. An experienced and skilled workforce is dedicated to maintaining high standards of service and customer satisfaction. The owner is now looking to retire, presenting an opportunity for a new owner to take over a profitable and thriving business.

Key Highlights

  • ~$1.76M annual revenue

    • $1.8M-$1.9M average (last 6 years)

  • ~$315K annual SDE

  • $200K FF&E (included)

  • $90K inventory (included)

  • 17 employees

  • Leased real estate (6,000 sqft)

Growth Avenues 🚀

  • Implement targeted marketing campaigns, including digital advertising and local community engagement, to enhance visibility and attract new customers

  • Introduce new repair services to cater to emerging market needs and diversify revenue streams

Potential Risks 🚩

  • Retaining skilled employees in a specialized industry can be challenging, particularly with the retirement of the current owner who may hold key relationships

  • As new technologies and repair techniques emerge, the business must continuously adapt to remain competitive and meet evolving customer expectations

Questions❓

  • How has the business adapted to changes in the industry over the past decade, and what strategies are in place to stay ahead of future trends?

  • What is the company’s approach to training and developing its workforce to ensure high-quality service and customer satisfaction?

  • What is the breakdown of the workforce, including the number of full-time, part-time, and contracted staff, and their roles within the company?

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week’s featured tweet comes from Helen Guo. It features an insightful interview with an individual who acquired a two-location ice cream company. Check it out for valuable lessons and inspiration👇

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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.