- Under the Radar
- Posts
- Tractor & Power Equipment Company w/ $5M Revenue ๐
Tractor & Power Equipment Company w/ $5M Revenue ๐
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
๐ Hey folks,
Welcome to issue #3 of Under the Radar!
This weekโs issue features:
๐ Automotive repair business serving 150 vehicles per month
๐ Tractor & power equipment company w/ $5M revenue
๐ชด Profitable lawn care business w/ $112K annual cash flow
Letโs get into it.
Hot Deals ๐ฅ
Analyses of the top deals we found across various marketplaces.
#1. Automotive repair biz serving 150 vehicles per month
๐ท๏ธ Asking Price: $265,000
๐ Location: Orlando, FL
Overview: Located in Orlando, Florida, this automotive repair shop has been in business for over 30 years, focusing on foreign vehicles and servicing around 150 vehicles per month. It has a solid customer base and a team of four employees. The business is for sale because the current owner is retiring. It comes with good financial records and a history of steady income. The shop is prequalified by SBA lenders, and the new owner will receive support and training for two weeks. There's potential for growth by extending hours and marketing, but the current owner hasn't pursued these opportunities.
Key Highlights โ
$700K+ revenue in 2023
$116K annual cash flow
SBA Lender Pre-qualified ($45,800 down)
4 FTEs
30-year operating history
Services ~150 vehicles/month
Owner will provide training for 2 weeks
Growth Avenues ๐
Expanding operational hours to include weekends, tapping into unmet demand and increasing revenue by serving customers who are unavailable during traditional weekday hours
Establishing a comprehensive marketing presence and strategy, including digital marketing and social media engagement, to attract new customers and retain existing ones, thereby boosting the shop's visibility and customer base
Potential Risks ๐ฉ
Concentrating exclusively on foreign vehicles positions the business within a specific niche, potentially sidelining a broader market of domestic vehicle owners
Questionsโ
Does the existing demand allow for an increase in operating hours on the weekend or will increased marketing efforts need to drive it?
Are the 4 FTEs expected to stay on?
#2. Tractor & power equipment company w/ $5M revenue
๐ท๏ธ Asking Price: $1,340,000
๐ Location: Arenac County, MI
Overview: This long-standing tractor and outdoor power equipment business, with over 75 years of operation in Eastern Michigan, is on the market due to the owner's retirement. With consistent performance and a revenue increase since 2019, it offers diverse revenue streams from sales, service, and parts of under 100 hp OEM tractors, outdoor power equipment, and off-road vehicles. The business enjoys high visibility on a busy highway and serves a loyal customer base, including second-home owners. The sale includes a skilled management team, with the seller open to a transition period, making it a high cash-flow opportunity with significant barriers to entry in a desirable Michigan location.
Key Highlights โ
~$5M annual revenue
$300K average annual SDE
High barriers to entry
Management will stay
15% annual revenue growth (2021 & 2022)
Owner will help with transition for up to 1 year
Growth Avenues ๐
Initiate a mobile service department for on-site repairs, expanding service reach and enhancing customer convenience
Establish an online platform for parts sales, using the existing website to widen market access and increase parts revenue
Add another OEM equipment line to diversify offerings and attract new customers, boosting overall sales
Potential Risks ๐ฉ
Launching a mobile service department and establishing an online sales platform may require significant initial investment and operational adjustments, posing risks associated with execution and capital allocation
Adding new OEM equipment lines to broaden product offerings could lead to challenges in differentiating in a potentially saturated market, impacting the expected increase in sales
#3. Profitable lawn care business w/ $112K annual cash flow
๐ท๏ธ Asking Price: $350,000
๐ Location: Rutland, MA
Overview: This residential landscaping company offers a fantastic opportunity with its strong reputation and loyal customer base, experiencing growth through word-of-mouth with minimal advertising. The sale includes all inventory, furniture, fixtures, equipment, and vehicles, featuring 5 heavy-duty trucks, trailers, mowers, and various landscaping tools. Services span from fertilizer and weed control to snow plowing, indicating a comprehensive approach to landscape management.
Key Highlights โ
$700K annual revenue
~$112K annual cash flow
Seller financing available
Equipment included in sale
Low customer turnover
Growth Avenues ๐
Implementing a strategic advertising and social media campaign to build on the existing word-of-mouth growth, potentially expanding the customer base and accelerating business development
Potential Risks ๐ฉ
Departure of the existing management team post-sale introduces a risk of operational disruption and knowledge loss, potentially affecting service continuity and customer relationships until new leadership is adequately established and trained
Questionsโ
Whatโs the current customer turnover rate? How has it changed over the years?
Whatโs the current team size? Are all employees expected to stay on?
Whatโs the competitive landscape like within the county?
Radar Picks ๐ก
Bit-sized reads featuring insights and fresh perspectives
Rate Todayโs Issue
How did we do today? |
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.