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Water restoration company w/ $1.6M annual revenue 🌊

Under the Radar Weekly Deals

Discover Top SMBs for Sale

👋 Hey fellow searchers,

Welcome to issue #34 of Under the Radar!

Let’s get right into it.

This week’s issue features:

  • 🚗 Automotive lift biz w/ $859K annual SDE

  • 🌊 Water restoration company w/ $1.6M annual revenue

  • 👷🏽 Home improvement biz selling at 2.5x annual SDE

Hot Deals 🔥

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

#1. Automotive lift biz w/ $859K annual SDE

🏷️ Asking Price: $2,100,000

📍 Location: Minnesota

Overview: This well-established automotive lift sales and repair business has been operating for 34 years, serving both new and used car dealerships as well as independent repair garages. Specializing in selling and servicing automotive lifts, the company enjoys a recession-proof business model due to the high demand for lift repairs, particularly when car sales slow. With strong customer relationships and referrals, this business has built a reputation for quality service and quick turnaround times, positioning it as a leader in the market.

Key Highlights

  • ~$2.39M (2020-2023 avg.)

  • ~$859K annual SDE

  • $116K FF&E (included)

  • Served 132 customers over last 12 months

  • 4 employees

Growth Avenues 🚀

  • Bringing on a dedicated salesperson to actively reach out to car dealerships and garages could accelerate growth and secure more contracts.

  • The business operates without a website or social media presence. Establishing an online platform, along with SEO and online advertising, would drive awareness and capture more leads.

Potential Risks 🚩

  • With a small staff of four, growing the business will require hiring more technicians to handle increased demand, which could present challenges in finding skilled labor.

  • The seller is retiring, and while minority partners are open to staying on post-sale, ensuring a smooth leadership transition and maintaining client relationships will be critical.

Questions❓

  • What is the company’s current capacity for handling service requests, and how will growth impact that capacity?

  • What key roles do the minority partners play, and how will they support the business post-sale?

  • What is the breakdown of revenue between lift sales and repair services?

#2. Water restoration company w/ $1.6M annual revenue

🏷️ Asking Price: $1,700,000

📍 Location: Orange County, FL

Overview: This highly profitable water restoration business in Central Florida has been operating for 9 years, offering services to residential and commercial clients. The company holds preferred vendor status with multiple insurance companies and relies on a strong referral-based clientele. With 3 full-time employees and subcontractors, the business is well-established in the growing Central Florida market. It’s an excellent opportunity for a contractor or entrepreneur looking for a strategic acquisition, with the current owner offering a transition period to ensure a smooth handover.

Key Highlights

  • ~$1.6M annual revenue

  • ~$570K annual SDE

  • $75K FF&E (included)

  • SBA financing available ($178K down)

  • Owner claims to turn away business

Growth Avenues 🚀

  • By enhancing the company’s online presence and leveraging digital marketing, the business could attract more direct leads and further grow its referral-based clientele.

  • Expanding services to more large-scale commercial clients could offer higher-margin opportunities and diversify revenue streams.

Potential Risks 🚩

  • While the business benefits from hurricane seasons, reliance on weather-related disasters for spikes in demand may lead to fluctuations in revenue during quieter periods.

  • Finding and retaining skilled labor or subcontractors to meet growing demand may present challenges as the business expands.

Questions❓

  • How are the current relationships with insurance companies structured, and are these contracts transferable to new ownership?

  • What is the condition of the equipment (FF&E), and will any major replacements or upgrades be needed soon?

  • How stable is the company’s vendor and subcontractor network, and are there any risks related to supply chain or service disruptions?

#3. Home improvement biz selling at 2.5x annual SDE

🏷️ Asking Price: $2,100,000

📍 Location: Eastern Pennsylvania

Overview: This home improvement business combines two thriving operations under one roof. Since 2018, the franchise division has earned a stellar reputation for managing smaller projects under $12,500. In mid-2023, the business expanded with the launch of a non-franchised kitchen and bath remodeling company to handle larger, more complex renovations. This hybrid approach allows the company to serve a wide range of clients, ensuring all renovation needs are met seamlessly, from smaller fixes to full-scale remodels, positioning it for ongoing growth. With 25 employees and a well-maintained property available for purchase ($400K), this business presents an excellent opportunity for a new owner to continue scaling its operations.

Key Highlights

  • ~$3.16M annual revenue

  • ~$855K annual SDE

  • $50K FF&E (included)

  • Seller financing (6% rate)

Growth Avenues 🚀

  • The franchise territory allows expansion up to 20 miles in all directions, offering room for geographic growth without additional territory fees.

  • The business’s varied customer base across multiple sectors (residential, healthcare, retail) offers stability and potential to tap into new revenue streams, such as additional commercial partnerships.

Potential Risks 🚩

  • While the franchise handles smaller projects, future growth may be constrained by franchise agreements, limiting flexibility in expanding service offerings or geographical reach.

  • The business’s success may rely on purchasing the real estate. If not acquired, rent costs could impact profitability long-term.

Questions❓

  • What percentage of revenue comes from the franchise services versus the independent kitchen and bath division?

  • What are the specific terms of the franchise agreement, and how do they impact future growth or additional services?

  • How does the business handle fluctuations in demand for smaller versus larger projects?

Other Hot Deals 🔥

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week’s tweet from CoFounders Nik dives into the world of vending machine businesses. He shares insights from Mike, who nets $526k annually from just 64 vending locations. From securing prime spots to streamlining operations, the thread highlights the importance of systems and scaling. Check out the full thread for the inside scoop!👇

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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.