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Tree Service Company w/ $2.2M Annual Revenue ๐ŸŒด

Under the Radar Weekly Deals

The #1 Boring Biz Newsletter

๐Ÿ‘‹ Hey folks,

Welcome to issue #14 of Under the Radar!

Letโ€™s get right into it.

This weekโ€™s issue features:

  • ๐Ÿ‘ท๐Ÿฝ Demolition services biz w/ $962K annual SDE

  • ๐ŸŒด Tree service company w/ $2.2M annual revenue

  • ๐Ÿ›– Roofing biz selling at 1.8x cash flow

Hot Deals ๐Ÿ”ฅ

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

#1. Demolition services biz w/ $962K annual SDE

๐Ÿท๏ธ Asking Price: $1,200,000

๐Ÿ“ Location: Phoenix, AZ

Overview: This dynamic demolition services business specializes in comprehensive solutions for residential, commercial, and industrial sectors. Established in 2010, the company has seen impressive growth due to strong client relationships and high service quality. Despite minimal marketing, the business thrives in the expanding Site Preparation Contractors industry, which is essential for construction projects. The current owner is selling to pursue other interests and relocate, and they are committed to ensuring a smooth transition for the new owner.

Key Highlights โœ…

  • ~$2.7M annual revenue

  • ~$962K annual SDE

  • 7 FTEs

  • Leased real estate

Growth Avenues ๐Ÿš€

  • Implementing comprehensive marketing initiatives could significantly increase client acquisition and revenue

  • Diversifying services to include more specialized demolition projects or related services like site preparation could attract a wider client base

Potential Risks ๐Ÿšฉ

  • Adhering to strict demolition and environmental regulations can incur additional costs and operational challenges

Questionsโ“

  • What are the terms and conditions of the current real estate lease?

  • What are the key roles of the seven employees, and how critical are they to daily operations?

  • What are the standard operational procedures for handling residential, commercial, and industrial projects?

#2. Tree service company w/ $2.2M annual revenue

๐Ÿท๏ธ Asking Price: $2,100,000

๐Ÿ“ Location: New York

Overview: This top-performing tree service business boasts multiple revenue streams, including a thriving plant healthcare division, and serves over 1,000 recurring customers. Known for its high-quality service and exceptional reputation, the company has garnered a 4.9-star rating on Google with over 300 reviews. Established in 2018, the business has rapidly grown and maintained a strong foothold in the market. The owner is selling due to other interests and relocation, ensuring a smooth transition for the new owner with comprehensive training and support.

Key Highlights โœ…

  • ~$2.2M annual revenue

  • ~$609K annual cash flow

  • ~$636K annual EBITDA

  • $1.62M FF&E included

  • 1,000+ customers

  • 13 FTEs (experienced crew)

Growth Avenues ๐Ÿš€

  • Expanding the service area beyond the current region to nearby cities or states can significantly increase the customer base. Targeting under-served markets with high demand for tree services can drive new business growth.

  • Introducing additional services such as landscaping, hardscaping, pest control, and snow removal can attract a wider range of clients and provide a buffer against seasonal fluctuations. Offering bundled services can increase customer loyalty and average transaction value.

Potential Risks ๐Ÿšฉ

  • The demand for tree services can be highly seasonal, with peaks during certain times of the year. This seasonality can lead to revenue fluctuations and may require careful cash flow management to ensure stability during off-peak periods.

Questionsโ“

  • Are there any key personnel whose departure would significantly impact operations? What measures are in place to retain these employees post-sale?

  • What specific growth opportunities have been identified but not yet pursued? How can these be leveraged to drive future revenue growth?

#3. Roofing biz selling at 1.8x cash flow

๐Ÿท๏ธ Asking Price: $650,000

๐Ÿ“ Location: South West Florida

Overview: This well-established roofing business has been operating profitably for over 17 years. It serves a diverse customer base with revenue streams from new construction, repair, remodeling, and service sectors. The business operates with minimal overhead, supported by 3 employees and additional subcontractors. With strong vendor and customer relationships, the business includes all necessary assets such as vehicles, tools, equipment, and a comprehensive customer list. The owner is looking to pursue other interests and is willing to provide training and support for a smooth transition.

Key Highlights โœ…

  • ~$2.5M annual revenue

  • ~$365K annual cash flow

  • SBA pre-approved

  • Seller financing available

Growth Avenues ๐Ÿš€

  • Adding complementary services such as gutter installation, siding, and general contracting can provide additional revenue streams and appeal to a broader client base

  • Forming strategic partnerships with real estate developers, property management companies, and local contractors can lead to steady referral business and joint ventures

Potential Risks ๐Ÿšฉ

  • The availability and retention of skilled labor can be a challenge in the roofing industry, impacting the quality of service and operational capacity

Questionsโ“

  • What are the terms of the agreements with the subcontractors, and how integral are they to operations?

  • How does pricing compare to competitors, and what strategies are used to differentiate services in the market?

  • What kind of training and onboarding processes are in place for new employees and subcontractors?

Radar Picks ๐Ÿ“ก

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week ๐Ÿฆ

This week's Tweet of the Week comes from Ben Kelly. In this thread, Ben breaks down how to buy your first boring biz while still working your 9-5 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.