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Tractor trailer repair shop w/ $900K+ annual cash flow 🧰

Under the Radar Weekly Deals

The #1 Boring Biz Newsletter

👋 Hey folks,

Welcome to issue #9 of Under the Radar!

Let’s get right into it.

This week’s issue features:

  • 🦷 Dental practice selling at >1x annual SDE

  •  🧰 Tractor trailer repair shop w/ $900K+ annual cash flow

  • 👩🏽‍💼 Insurance claims and appraisal biz w/ ~$879K revenue

Hot Deals 🔥

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

#1. Dental practice selling at >1x annual SDE

🏷️ Asking Price: $850,000

📍 Location: Phoenix, AZ

Overview: Able Dental Practice in Phoenix, Arizona, is a well-established dental clinic led by Dr. Muscato, known for its substantial and loyal patient base. The practice is fully staffed with 10 full-time employees and includes a fully equipped facility and additional rental income suites. Currently up for sale as the owner prepares to transition to the next stage of life, the practice offers a smooth transition with the current owner available for up to two years. This opportunity is ideal for buyers looking to invest in a reputable and stable business with excellent growth potential.

Key Highlights

  • ~$1.5M annual revenue

  • ~$1.4M annual SDE

  • $500K FF&E included

  • $75K inventory included

  • 250+ monthly patients

  • 5 rental income suites (with $900K real estate - not included in asking price)

Growth Avenues 🚀

  • With over 250 new patients each month, there is a clear demand for increased dental services. Hiring more dental professionals could help meet this growing patient volume and potentially extend operating hours to accommodate more appointments.

Potential Risks 🚩

  • Maintaining the existing patient base after a change in ownership can be challenging. Patients may be loyal to the current owner, particularly in a practice that has been under the same management for many years.

Questions❓

  • What type of marketing (if any) does the biz currently do?

  • Are the 5 rental income suites fully occupied? If so, when do the leases expire?

#2. Tractor trailer repair shop w/ $900K+ annual cash flow

🏷️ Asking Price: $4,400,000

📍 Location: Central, VA

Overview: This Tractor Trailer Truck Repair Shop has been serving Central Virginia for over 30 years, specializing in medium and heavy tractor trailer repairs. The business includes a well-maintained 11,000-square-foot facility, fully equipped and staffed by 15 employees. Currently up for sale due to the owner's retirement, the shop offers significant growth potential and includes a transition period with the current owner to ensure a smooth handover. This is an excellent opportunity for buyers interested in a reputable, established service business.

Key Highlights

  • ~$3.8M annual revenue

  • ~$9340K annual cash flow

  • ~$657K annual EBITDA

  • $250K FF&E included

  • $3.2M real estate (not included in asking price)

Growth Avenues 🚀

  • Launching a mobile repair unit could address emergency repairs and regular maintenance needs directly at customer locations or on the road, providing added convenience for clients and opening up a new revenue stream

Potential Risks 🚩

  • As the trucking industry evolves, particularly with the increase in electric and hybrid trucks, the repair shop may need significant investment in new technologies and training to stay relevant and competitive

Questions❓

  • Is the real estate available for lease if desired?

  • Are the 15 employees expected to stay on post-sale?

  • What are the current roles of all 15 employees? Can day-to-day operations be run by them?

#3. Insurance claims and appraisal biz w/ ~$879K revenue

🏷️ Asking Price: $429,000

📍 Location: South Carolina

Overview: This established Insurance Claims Adjusting & Damage Appraisal business in South Carolina, operating for over 30 years across SC, NC, and GA, specializes in independent vehicle damage appraisals and valuations. With expertise ranging from bikes to bulldozers, including watercraft and aircraft, the company handles Diminished Value-DV and Right to Appraisal-RTA disputes proficiently. It has a solid client base offering significant growth opportunities, particularly in dwelling and commercial property claims.

Key Highlights

  • ~$879K annual revenue

  • ~$153K annual income

  • 10 contract employees

  • 3 weeks training & support

Growth Avenues 🚀

  • While the company currently focuses on vehicle damage appraisals, expanding into other types of claims, such as property damage, both residential and commercial, could diversify its revenue streams. Offering full adjustment services for these claims could make the business a one-stop solution for clients.

Potential Risks 🚩

  • Relying on contractors rather than full-time employees can lead to issues with workforce stability and reliability. Contractors may not be as committed to the company's long-term goals and could be working with multiple clients, which might affect their availability and focus.

Questions❓

  • How is contractor performance monitored and managed?

  • What are the terms and conditions of contractor agreements?

  • Are there any long-term contracts in place with key clients?

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week's Tweet of the Week comes from Ben Kelly. Ben operates a portfolio of 6 boring businesses and posts a ton of valuable content like the thread below.

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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.