New Deals: A roofing business, concierge medicine clinic, and 3 other finds

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NEW DEALS

1/ Roofing Business

📍 Location: Northeast Florida
💰 Asking Price: $6,600,000 (includes RE)
💼 EBITDA: $1,000,000
📊 Revenue: $9,000,000
📅 Established: 2000

💭 My 2 Cents: Roofing is an essential business, and this company also has going for them their Florida location (the #1 state in the U.S. for natural disasters in terms of frequency and impact) and its associated weather-driven demand. I like their diverse mix of residential and commercial clients, with some 70% of their work reroof projects and the rest new construction. I also like their 25-year history, established brand, and stable workforce. Critically, their sale includes two parcels of land totaling about a half acre, a 3,500 sq ft building, and multiple trucks, trailers, and tools. Given the asking multiple, it’ll be important to understand the exact value of the real estate and other assets to know what you are paying the premium for compared to a standalone business. I’d also need to know the availability and reliability of subcontractors and in-house crews, the revenue mix between insurance vs out-of-pocket, how they generate leads on the residential side and win new projects on the commercial side, what seasonality looks like, how they manage their supplier relationships, and the day-to-day role of the owner. Assuming a significant portion of the purchase price is going to real estate and hard assets, this could play a positive role in the kind of debt terms available.

2/ Concierge Medicine Clinic

📍 Location: Arizona
💰 Asking Price: $1,300,000
💼 EBITDA: $660,739
📊 Revenue: $905,296
📅 Established: 2006

💭 My 2 Cents: Concierge medicine continues to grow in popularity as patients increasingly seek personalized and accessible care. This clinic, with a very solid foundation of 471 active members, focuses on providing top-notch care for elderly patients. They have strong numbers as they benefit from high compensation levels and low administrative costs. Another positive is their medical office suite, which is available either for purchase ($325K) or with favorable lease terms. To start, I’d need to explore how important the seller’s relationship with patients is and what will be involved in transitioning their care to a new provider. I’d also want to get a handle on how they acquire new patients, their patient retention rate, how their fee structure compares to other practices in the area, the legal and regulatory requirements associated with the practice, and the roles and responsibilities of their other staff. Given their Tucson location with its older demographics, a motivated new owner should readily be able to expand by bringing in additional providers and services.

3/ HVAC Company

📍 Location: Colorado
💰 Asking Price: $2,150,000
💼 EBITDA: $711,375
📊 Revenue: $2,107,727
📅 Established: 2012

💭 My 2 Cents: The HVAC industry remains strong, especially in regions like Colorado, where seasonal temperature changes drive consistent demand. Plus, Colorado promotes energy-efficient HVAC systems with rebates and tax incentives, creating strong upsell opportunities. I like this business’s experienced staff, a newly upgraded fleet of service vehicles, and a well-maintained facility (available for purchase separately), all of which have helped spur their consistent revenue growth. I’d want to know what proportion of their revenue comes from new installations versus repairs and maintenance contracts, if there are any significant client concentration risks, how they set themselves apart from their competitors in bringing in new work, if they are routinely involved in bidding on projects and their success rate, and what the team of skilled technicians looks like (since it can be hard to hire/retain them). Ultimately, this looks like a proven turnkey that is being offered at a very reasonable multiple for HVAC, with seller financing also available.

4/ Battery Manufacturer with Government Contracts

📍 Location: Idaho
💰 Asking Price: $6,000,000
💼 EBITDA: $1,529,283
📊 Revenue: $3,764,077
📅 Established: 2015

💭 My 2 Cents: This manufacturer specializes in lithium-ion batteries, with their sales divided between B2B (85-90%) and B2C (10-15%). Lithium-ion batteries are expected to continue to grow significantly in demand over the next five years, and this company, which produces 100% of its items in the US, is poised to leverage its domestic manufacturing position going forward. I also really like their government contracts, which provide stability and consistency to their revenues. However, I’d want to know their typical duration and renewal rate. I’d also want to look into their supplier relationships and what their primary cost drivers are, how much of their manufacturing is automated, if they have any patents or proprietary technologies, the qualifications and experience of their staff, and if there are any residual issues from their CEO stepping away in 2024. If everything checks out, this is an impressive cash producer with great margins.

5/ Dog Boarding, Grooming, and Daycare Business

📍 Location: California
💰 Asking Price: $1,620,000
💼 EBITDA: $585,748
📊 Revenue: $2,912,000
📅 Established: 2002

💭 My 2 Cents: In case you didn’t know, people these days really love their pets. And, like anything else people love, they are willing to spend on them. Enter this highly profitable dog boarding, daycare, and grooming business that operates from two locations in California’s Central Valley, serving a market of approximately 300,000 residents. Their facilities are well-sized and well-equipped, featuring 206 kennel spaces, 13 outdoor runs, and specialized areas for different dog breeds and temperaments (one is for sale separately, the other is leased). I like their 20-year history, robust staff of 40, and established client base, as people tend to be very sticky with anything related to their pets. I’d want to dig into the revenue split between their different services, their level of repeat clients, the costs involved in maintaining their facilities, how they ensure safety and hygiene standards are maintained, how much competition they face, if they have an online presence (check reviews), and what a realistic transition plan could look like with the owner retiring.