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Used truck sales biz selling at 2x annual SDE 🚛
Under the Radar Weekly Deals
Discover Top SMBs for Sale
👋 Hey fellow searchers,
Welcome to issue #32 of Under the Radar!
Let’s get right into it.
This week’s issue features:
🔌 Electrical contractor w/ $1.71M annual revenue
🚛 Used truck sales biz selling at 2x annual SDE
🥫 Aluminum enclosure co. w/ $1.1M annual SDE
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Electrical contractor w/ $1.71M annual revenue
🏷️ Asking Price: $995,000
📍 Location: Hancock County, ME
Overview: This well-established electrical contracting business has been serving residential and commercial clients for nearly 50 years. The company offers services like solar installations, heat pumps, home automation, lighting design, and more. The real estate, valued at $800,000, includes a spacious workshop with high-clearance doors, ideal for supporting operations and future growth. The owner is retiring and willing to offer partial financing, including on the property (4% over 10 years).
Key Highlights ✅
~$1.71M annual revenue
~$536K annual SDE
$10K FF&E (included)
$100K inventory (not included)
$350K vehicles (included)
Growth Avenues 🚀
Modernizing marketing efforts, including enhancing the company’s online presence through SEO and digital ads, could attract a younger demographic and commercial clients.
Pursuing government contracts for electrical services in the public sector could provide steady long-term business.
Potential Risks 🚩
With a skilled trade like electrical contracting, retaining experienced employees or finding skilled labor can be a challenge, especially in a rural area.
Managing the fleet of vehicles and maintaining the equipment will require consistent attention and investment.
Questions❓
How many full-time employees does the business have and what roles do they hold?
What is the condition of the equipment and fleet, and what is the estimated cost of upcoming replacements or upgrades?
Are the relationships with contractors and suppliers transferable to new ownership?
#2. Used truck sales biz selling at 2x annual SDE
🏷️ Asking Price: $3,500,000
📍 Location: Orange County, FL
Overview: This well-established used truck sales business has been operating since 2018, offering a wide selection of clean, high-quality trucks to commercial buyers. Known for its customer satisfaction and 5-star reviews, the business has a no-hassle sales environment and flexible financing options. It operates from a highly visible 1.8-acre location on one of the busiest roads in the area, with a skilled and motivated staff in place. The seller is offering SBA financing and additional seller financing for inventory to ease the transition.
Key Highlights ✅
~$11.80M annual revenue
~$1.74M annual SDE
$130K FF&E (included)
$2.5M inventory (not included)
9 employees
Leased real estate ($12k/month)
Growth Avenues 🚀
Partnering with logistics, construction, and delivery companies to offer bulk or fleet sales could drive higher-volume sales.
Expanding online marketing efforts, including SEO, social media, and digital advertising, could drive more traffic and sales, beyond the current word-of-mouth referrals.
Potential Risks 🚩
With a large inventory to maintain, fluctuations in vehicle prices or demand could affect cash flow and profitability.
The demand for commercial vehicles is tied to industries like construction, logistics, and transportation, which are vulnerable to economic cycles.
Questions❓
How reliant is the business on repeat customers versus new customer acquisition?
How does the company manage its inventory, and what measures are in place to minimize the impact of price fluctuations?
How competitive is the local market for used truck sales, and what differentiates this business from competitors?
#3. Aluminum enclosure co. w/ $1.1M annual SDE
🏷️ Asking Price: $3,800,000
📍 Location: Martin County, FL
Overview: This well-established business is known as a leader in the specialty aluminum enclosures industry, serving residential and commercial clients for over 30 years. The company provides custom solutions like pool and patio screens, poly roofs, and more, earning a strong reputation for quality and customer satisfaction. The business is SBA-approved, has a strong repeat/referral customer base, and operates from a leased 7,500 sqft. facility. It’s set up for continued growth, driven by Florida’s booming population and increasing demand for outdoor enclosures.
Key Highlights ✅
~$6.39M annual revenue
~$1.10M annual SDE
$320K FF&E (included)
$50K inventory (included)
4.4 star Google rating
39 employees
Growth Avenues 🚀
The steady population growth in Florida, especially in suburban areas, ensures continuous demand for outdoor enclosures for both residential and commercial properties.
The business has potential to expand into untapped areas, increasing market reach and sales.
Potential Risks 🚩
The cost of aluminum and other building materials could fluctuate, potentially affecting margins.
Weather-related delays or hurricanes could impact the production or installation of outdoor structures, leading to scheduling backlogs and cost overruns.
Questions❓
What is the breakdown of revenue between residential and commercial projects?
How does the business manage inventory, and are there any risks tied to supply chain disruptions?
What is the breakdown of the 39 employees? Are they full-time, part-time, or subcontractors, and what is their capacity in terms of handling current and future demand?
Other Hot Deals 🔥
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week’s featured tweet from Ben Kelly shares why top MBA grads are leaving corporate jobs to buy small businesses. After leaving JP Morgan, Ben explains how he built multiple income streams while gaining more flexibility and fulfillment. His insights on the growing wave of entrepreneurship driven by Boomer retirements are a must-read for anyone considering this path. Check out the full thread!👇
The corporate dream is dead.
MBA students are turning down 6-figure salaries at McKinsey to buy small businesses.
As someone who did the same…
Here’s my take on the situation:
— Ben Kelly (@benkellyone)
12:41 PM • Sep 30, 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.