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Tree Service Company w/ $2.2M Annual Revenue ๐ด
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
๐ Hey folks,
Welcome to issue #14 of Under the Radar!
Letโs get right into it.
This weekโs issue features:
๐ท๐ฝ Demolition services biz w/ $962K annual SDE
๐ด Tree service company w/ $2.2M annual revenue
๐ Roofing biz selling at 1.8x cash flow
Hot Deals ๐ฅ
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Demolition services biz w/ $962K annual SDE
๐ท๏ธ Asking Price: $1,200,000
๐ 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 โ
~$2.7M annual revenue
~$962K annual SDE
7 FTEs
Leased real estate
Growth Avenues ๐
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 ๐ฉ
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
๐ท๏ธ Asking Price: $2,100,000
๐ 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 โ
~$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 ๐
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 ๐ฉ
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
๐ท๏ธ Asking Price: $650,000
๐ 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 โ
~$2.5M annual revenue
~$365K annual cash flow
SBA pre-approved
Seller financing available
Growth Avenues ๐
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 ๐ฉ
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 ๐ก
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week ๐ฆ
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 ๐
I bought a nail salon as a W-2 employee.
I bought a SaaS company as a W-2 employee.
I bought a web design company as a W-2 employee.
Then I quit the rat race.
Here's how to buy your first local business while working a 9-5 job (step by step):
โ Ben Kelly (@benkellyone)
8:36 PM โข May 29, 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.