New Deals: A family safety equipment company, sheet metal manufacturing business, and 3 other finds

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NEW DEALS

1/ Babyproofing Company

📍 Location: Texas
💰 Asking Price: $2,300,000
💼 EBITDA: $641,315
📊 Revenue: $2,271,238
📅 Established: 1992

💭 My 2 Cents: Did you know babyproofing is a $3.4B industry? This company provides babyproofing, pool safety, and general home safety services, but what makes it more interesting is its two business models. On the direct-to-consumer side, they provide safety products and installs to residential and commercial clients (such as childcare centers and home builders) in Houston. And, as a dealer network, they offer training and equipment to individuals looking to start their own babyproofing businesses in other cities. The dealer network is particularly interesting to me because of how scalable it is. I also like that this company has built a strong reputation over the last 30 years, which is paramount in this industry (however, I’d want to check any online reviews or ratings). I’d want more details on how the dealer network works, whether it operates on a franchise type model, and how they bring on new dealers into their ecosystem. They have a lean staff of five with a General Manager in place, so this could be a great opportunity for someone who wants to work on the business and not in it.

2/ Sheet Metal Manufacturing Business

📍 Location: San Bernadino County, California
💰 Asking Price: $2,800,000
💼 EBITDA: $1,065,000
📊 Revenue: $4,643,592
📅 Established: 2008

💭 My 2 Cents: This sheet metal business specializes in manufacturing paint spray booths and related equipment for the finishing industry. I really like their niche focus and strong technical foundation with their robust 3D design library and five NRTL certificates. They have significant growth potential across their five major product lines, while their current small share of the $526 million U.S. paint booth industry tells you they have a lot of room to grow. I’d want to know the breakdown in revenues and earnings between their different product lines, how they acquire new business, who their main competitors are and how they differentiate themselves from them, the condition of their equipment and inventory, whether there are pending capital expenditures, and the qualifications and experience of their staff. With their facility also available for purchase and the owner, who is retiring, willing to offer three months of support and training to aid a smooth transition, this looks like a very attractive deal.

3/ Commercial Landscaping Business

📍 Location: Lakewood Ranch, Florida
💰 Asking Price: $4,100,000
💼 EBITDA: $1,424,273
📊 Revenue: $4,337,000
📅 Established: 2009

💭 My 2 Cents: I’m always on the lookout for landscape businesses, and especially ones in Florida where there’s year-round demand. This particular landscaper focuses on managing commercial ponds, lakes, and other wetlands, which is great because these commercial contracts tend to be much stickier and more repetitive than those found in residential landscaping. This company also has going for them a 15-year track record, a strong management team in place that will remain post-sale, and nearly half a million dollars in equipment (need to check on the condition!) included in the purchase price. I’d need to understand who their key clients are and if there are any client concentration problems, the terms of their standard contract, the level of recurring revenue, if there are any challenges in recruiting or retaining employees, and how they set themselves apart and win new business (and keep current clients) in the crowded and very competitive landscaping business.

4/ e-Commerce Subscription Platform

📍 Location: Tampa, Florida
💰 Asking Price: $10,500,000
💼 EBITDA: $2,546,039
📊 Revenue: $3,587,084
📅 Established: 2020

💭 My 2 Cents: This B2B eCommerce agency specializes in helping CPG brands optimize their revenue through a proprietary subscription platform that aids in the acquisition and retention of online customers. Their clients are mid-sized Shopify stores, with their revenue coming from performance-based contracts. And judging from their numbers, whatever they are doing is working. They boast a 100% repeat client rate, average client monthly billing of $60K, and average client LTV of $2M. There are a bunch of e-Commerce subscription platforms out there, so the key things I’d want to focus on are what differentiates their platform and what tangible impacts they’re making on CAC and LTV for their CPG clients. I’d also want to better understand the terms and duration of their standard contract, how many clients they currently have, and how they go about winning new business. On top of that, I’d want to dig into their team and use of outside contractors for development work. With e-Commerce only projected to continue to grow, this scalable high-margin business looks like an awesome opportunity.

5/ Printing Company

📍 Location: Los Angeles County, California
💰 Asking Price: N/A
💼 EBITDA: $1,446,068
📊 Revenue: $6,920,780
📅 Established: 2005

💭 My 2 Cents: This printing company is a standout performer generating a very substantial level of revenue while operating with a strong EBITDA margin, which is uncommon in the printing space. They have an experienced management team in place and a staff of 20 full-time employees working across two shifts, so little owner involvement is needed. There can be a lot of competition in this space, so it will be important to understand if they focus on any niche areas of printing. I’d also want to dig into who their clients are, the industries they represent, and the longevity of these relationships. Finally, I’d need more details on the nature and condition of the $600K in FF&E and inventory included in the sale. What’s interesting is the 22,000 sq ft facility is available for purchase, which could help extend the amortization of a loan up to 25 years (meaning more cashflow to you).