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Sign Manufacturing and Install Biz w/ $1.35M Annual SDE ๐Ÿ›‘

Under the Radar Weekly Deals

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๐Ÿ‘‹ Hey fellow searchers,

Hope you had a great weekend and welcome back to Under the Radar! ๐Ÿ€

Whether youโ€™re celebrating St. Patrickโ€™s Day with a pint or just hoping for a little extra deal-making luck, weโ€™ve got another packed issue for you.

Letโ€™s get right into it.

This weekโ€™s issue features:

  • ๐Ÿ›๏ธ Architecture millwork co. w/ $8M annual revenue

  •  ๐Ÿ›‘ Sign manufacturing and install biz w/ $1.35M annual SDE

  • ๐Ÿช  High-volume plumbing co. w/ $648K annual SDE

Hot Deals ๐Ÿ”ฅ

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

#1. Architecture millwork co. w/ $8M annual revenue

๐Ÿท๏ธ Asking Price: $1.98M

๐Ÿ“Location: Texas

Overview: This well-established boutique architectural millwork company has been serving the Texas market for over 30 years, generating $8M in annual revenue and $780K in SDE (2.5x multiple). Specializing in high-end custom wood veneer walls, ceilings, casework, and furniture, the company has a strong client base across commercial and residential sectors (74% and 26% of revenue, respectively). It operates from a 50,000 sqft. facility, housing a full-cycle manufacturing operation with CNC equipment, paint booths, and staging areas. The business currently has a $9M pipeline of contracted work and a skilled team of ~35 W-2 employees, supplemented by 15-20 subcontractors.

What I Like ๐Ÿ‘

  • Strong Backlog โ€“ $9M in projects already secured, ensuring revenue stability post-acquisition.

  • Diverse Client Base โ€“ Serving commercial, institutional, and luxury residential sectors reduces market risk.

  • Full-Service Operation โ€“ From design to installation, the company controls the entire production cycle, which enhances margins and quality control.

  • Established Reputation โ€“ 30+ years in the business with long-term relationships with architects, designers, and contractors.

  • Owners Willing to Stay โ€“ One owner is open to remaining full-time, which could provide operational continuity.

What to Look Out For ๐Ÿ‘€

  • High Lease Costs โ€“ The 50,000 sqft. facility costs $34,000/month, which is significant and may require lease renegotiation.

  • ERP & Systems Upgrade Needed โ€“ Investing in better project management, bidding, and accounting systems could improve efficiency and financial oversight.

  • Sales Team Development โ€“ No dedicated sales team; growth has been driven by industry relationships. A formal sales strategy could increase high-margin opportunities.

  • Owner Dependency โ€“ The President is deeply involved in daily operations, so a transition plan will be critical.

Key Questionsโ“

  • What is the breakdown of the $9M backlog in terms of project size, timeline, and profitability?

  • How dependent is the business on existing industry relationships, and how transferable are they to a new owner?

  • What investments are needed in ERP, bidding, and project management systems to optimize operations?

#2. Sign manufacturing and install biz w/ $1.35M annual SDE

๐Ÿท๏ธ Asking Price: $3.5M

๐Ÿ“Location: Atlanta, GA

Overview: This sign manufacturing and installation company has been operating for nearly 18 years, serving a mix of retail clients and major corporations that make up 40โ€“60% of its client base. With $4.8M in annual revenue and $1.35M in SDE (2.6x multiple), the business has a strong financial foundation and a team of 25+ employees. It operates from a 15,000 sqft. facility with a long-term lease through 2030, providing stability for new ownership. The company holds strong industry relationships, particularly in the automotive sector, and offers significant growth potential through expanded service offerings and geographic reach.

What I Like ๐Ÿ‘

  • Established Client Base โ€“ Long-term relationships with major corporate clients, including a large automobile manufacturer.

  • Stable Operations โ€“ A seasoned team of 25+ employees and a well-equipped 15,000 sq. ft. facility provide operational continuity.

  • Diverse Revenue Streams โ€“ Serving both retail and corporate clients reduces dependence on any single revenue source.

  • Growth Potential โ€“ Expanding services beyond signage, particularly in interior design, could increase revenue.

  • Owner Training & Transition โ€“ The seller is willing to stay on for a few months, ensuring a smooth handover.

What to Look Out For ๐Ÿ‘€

  • Client Concentration Risk โ€“ A large portion of revenue comes from one major auto client; losing this contract could significantly impact cash flow. 

  • Vehicles Not Included โ€“ Company fleet is excluded from the sale, possibly requiring extra investment.

  • Scaling Challenges โ€“ Business serves a niche market; expansion potential depends on securing new large contracts.

Key Questionsโ“

  • What percentage of revenue comes from the largest client, and how secure is that relationship?

  • What specific equipment and vehicles are excluded from the sale, and what would be the cost to replace them?

  • How reliant is the business on the current owner for client relationships, and how will the transition be handled?

#3. High-volume plumbing co. w/ $648K annual SDE

๐Ÿท๏ธ Asking Price: $1.6M

๐Ÿ“Location: Saint Lucie County, FL

Overview: This high-volume residential plumbing business has quickly grown since launching in 2022, generating ~$2.87M in annual revenue with SDE of ~$648K (2.5x multiple). The company handles 330-400 jobs per month, focusing 99% on residential service work (no new construction). With 14,000 customers, strong online reviews, and a new membership program, the business has room for continued growth. Operations run 8 AM โ€“ 6 PM, 7 days a week with a team of 10 W-2 employees, including a service manager who handles sales. The owner currently works 8-15 hours per week and will assist with a 2-3 month transition.

What I Like ๐Ÿ‘

  • Recurring Revenue Potential โ€“ New membership program is in its early stages, providing predictable future income.

  • High Job Volume โ€“ Completing 330-400 jobs per month provides steady cash flow and demand.

  • Strong Market Presence โ€“ Business serves Boca Raton to Melbourne with established online leads, referrals, and direct marketing.

  • SBA Pre-Approved โ€“ Qualified buyers can acquire the business with financing in place.

What to Look Out For ๐Ÿ‘€

  • Short Lease Term โ€“ Current lease expires in September; landlord is open to a longer lease but terms should be reviewed.

  • Outside License Holder โ€“ The company relies on an external qualifier ($1,000-$1,500/month); employees can take the master plumber exam, but this transition should be planned.

  • Recent Growth โ€“ Revenue nearly doubled from 2023 to 2024; sustainability of this trajectory should be evaluated.

  • Marketing Spend โ€“ Spent $200K on advertising in 2024, with $350K in available budgetโ€”important to assess ROI and necessity of continued investment.

Key Questionsโ“

  • How effective has the $200K marketing spend been in generating new business? Would reducing this impact revenue?

  • What is the retention rate of the new membership program, and what is the projected long-term value?

  • Does the business have capacity to increase pricing or expand service areas without overextending resources?

Other Hot Deals ๐Ÿ”ฅ

Radar Picks ๐Ÿ“ก

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week ๐Ÿฆ

This weekโ€™s featured tweet comes from @SMB_Attorney, who takes aim at the myth that buying a business means instant cash flow. The reality? Employees quit, expenses spike, and key customers leaveโ€”itโ€™s called the J Curve, and it catches a lot of first-time buyers off guard. If youโ€™re thinking about acquisition, be ready for the ride. ๐Ÿ‘‡

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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.