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Self-Service Laundry Mat Selling at 3.6x Cash Flow 🧺
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey folks,
Welcome to issue #12 of Under the Radar!
Let’s get right into it.
This week’s issue features:
🛠️ Commercial & residential flooring biz w/ $563K SDE
🧺 Self-service laundromat selling at 3.6x cash flow
🚚 Trucking equipment hauling company w/ $2.8M revenue
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Commercial & residential flooring biz w/ $563K SDE
🏷️ Asking Price: $1,050,000
📍 Location: Phoenix, AZ
Overview: This award-winning flooring company has established itself as a leader in both commercial (80%) and residential (20%) flooring over the past 19 years. Known for its exceptional service and quality, the business has built a loyal client base that spans big-box stores, corporate offices, and residential complexes. With a seasoned team of skilled employees, the company ensures smooth operations and high-quality installations.
Key Highlights ✅
~$2.2M annual revenue
~$563K annual SDE
$150 FF&E included
$1.25M real estate (not included)
4 FTEs
Open to seller’s note
Growth Avenues 🚀
Introduce complementary services like flooring maintenance, restoration, and design consultancy to capture new revenue streams
Extend services to adjacent markets to increase market share and client base
Potential Risks 🚩
The loss of experienced staff could disrupt operations and affect service quality
Questions❓
What are the specifics of existing commercial contracts, and how secure are these relationships?
How stable and reliable are the supplier relationships?
How does the business handle inventory management and order fulfillment to ensure timely and efficient service delivery?
#2. Self-service laundromat selling at 3.6x cash flow
🏷️ Asking Price: $769,000
📍 Location: Williston, ND
Overview: This full-service laundry business, established in 2012, caters to a transient workforce primarily in the agriculture and energy sectors. The facility spans 3,600 sq. ft. and offers self-service laundry, showers, and drop-off services. The business leverages a secure card-based payment system, minimizing cash handling risks. With low local competition and strong demand from over 100,000 laborers annually, it’s strategically positioned for continued success.
Key Highlights ✅
~$519K annual revenue
~$213K annual cash flow
1 GM, 4-5 technicians
SBA pre-approved
$474K FF&E included
41% profit margin
Growth Avenues 🚀
Introduce additional services like starching, dry-cleaning, and pickup/delivery options to attract more customers and boost revenue. These services can cater to busy professionals and corporate clients looking for convenience
Invest in facility upgrades such as adding digital slot machines or entertainment options to enhance the customer experience and increase their dwell time, leading to higher spend per visit
Potential Risks 🚩
Managing the business remotely can pose challenges in maintaining consistent service quality and promptly addressing operational issues or emergencies
The existing equipment, while valued at $474,000, needs regular maintenance and eventual replacement. Assessing the remaining lifespan of machinery and planning for future investments is essential to avoid disruptions.
Questions❓
What is the current condition and estimated remaining lifespan of the laundry equipment? Are there any upcoming maintenance or replacement needs?
Can detailed demographics and usage patterns of the customer base be provided? How loyal is the current customer base, and what is the repeat business rate?
#3. Trucking equipment hauling company w/ $2.8M revenue
🏷️ Asking Price: $2,300,000
📍 Location: Chicago, IL
Overview: This trucking and equipment hauling company has been operating successfully for over 40 years. The business specializes in heavy equipment transportation for various industries, including construction, mining, and agriculture. The business runs full loads to and from California, from the Midwest. Typical loads include brand-name products such as John Deere, Caterpillar, and Case. With a strong reputation and established client base, it offers a solid foundation for growth and profitability.
Key Highlights ✅
~$2.85M annual revenue
~$1.1M annual cash flow
~$2.5M FF&E included (notes outstanding)
$400K real estate included
Growth Avenues 🚀
Extend services to neighboring states and regions to broaden the customer base and increase market share
Invest in expanding the fleet to increase capacity and meet growing demand from existing and new clients
Potential Risks 🚩
The business is sensitive to economic fluctuations in key industries like construction and mining, which could impact demand
Rising fuel prices and maintenance costs could affect profit margins, requiring effective cost-management strategies
Questions❓
What are the terms and conditions of existing contracts? How secure are these long-term agreements?
What training and support will the current owner provide to ensure a smooth transition?
How many FTEs does the business currently have?
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week's Tweet of the Week comes from Nick Huber, a well-known entrepreneur and investor in the SMB world. Check out the thread below for valuable insights on how he grows companies 👇
There is a proven playbook to grow companies.
The best entrepreneurs have a series of plays they run to print money. What tools to use, agencies to hire, strategies to employ.
Here is the exact 12 step strategy I've used to grow 3+ companies to millions in annual profit:
#1 -… x.com/i/web/status/1…
— Nick Huber (@sweatystartup)
1:49 PM • May 13, 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.