New Deals: An auto glass replacement company, contract manufacturer, and 3 other finds

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NEW DEALS

1/ Auto Glass Replacement Company

📍 Location: New York
💰 Asking Price: $9,950,000
💼 EBITDA: $2,081,321
📊 Revenue: $5,088,121
📅 Established: 1991

💭 My 2 Cents: You all know I like auto repair businesses as there is always demand for their services, especially as more cars are on the road every year. This company provides a wide range of auto glass repair and replacement services for both private and commercial clients. They basically prove my point about how lucrative auto repair can be, as they have an awesome level of cash flow and great margins. I like their 35-year history, diversified service offerings, cadre of highly trained technicians, and strong supplier and insurance company relationships. I’d want more detail on how they work with insurance companies and how important these are to referrals, how they otherwise bring in new business, the standard terms of their multi-year contracts with police and fire departments and other local government entities, the condition and lifespan of the equipment included in the sale, and possible opportunities for regional expansion. If, as I suspect, there is a lot of growth potential here, this deal could be a real winner.

2/ Contract Manufacturer

📍 Location: Utah
💰 Asking Price: $4,000,000
💼 EBITDA: $1,052,621
📊 Revenue: $9,260,469
📅 Established: 2017

💭 My 2 Cents: I’ve worked with a lot of co-manufacturers in the past and like their ability to scale to the needs of individual clients while diversifying their risks across multiple brands. And, as an added bonus, if one of their clients comes up with a new product that takes off, they see the benefit as well. This dietary supplement co-manufacturer specializes in capsules, chewable tablets, and powder drinks for both large and small brands. I really like that the global nutraceuticals market is expected to grow at a 7.8% CAGR through 2030, fueled by rising consumer health awareness, demand for plant-based supplements, and innovation in delivery formats. Other specific positives for this business include a reputation for quick market turnaround and innovative flavor formulations, an established staff of 50, and $500K of specialized equipment and $1M of inventory included in the sale. However, I’d need to check on whether any clients currently account for over 10% of revenue, what their level of repeat business is (should be high, especially considering their clients sell consumables), and how many shifts they’re currently running (to determine how much capacity they have remaining). I’d also dig into their client split between established brands vs. new startups, which can be riskier.

3/ E-Commerce Plant Nursery

📍 Location: Georgia
💰 Asking Price: $4,000,000
💼 EBITDA: $1,000,000
📊 Revenue: $3,023,517
📅 Established: 2008

💭 My 2 Cents: This Georgia plant nursery specializes in fruit and nut trees, berries, and bamboo, operating from a 32-acre property with a 7,200 sq ft warehouse and two greenhouses. This real estate, worth over $800K, and some $250K in FF&E and inventory are included in the purchase price, lowering the multiple to a reasonable 2.9x. This is a huge selling point, as they could provide real marketing leverage for a new owner wanting to pursue expansion. In thinking about growth, there is spare acreage on the property that could be turned into cultivation, and there is a long-term staff in place that can handle both ongoing operations and possible expansion plans. I’d need to better understand the risks involved in sourcing and growing specific plant varieties, customer repeat rate and lifetime value, how much it costs to acquire a new customer (and which marketing channels are working), how they handle seasonality (with February and March their busiest months), what would be involved in adding walk-in sales, and the level of investment needed to expand their acreage in use.

4/ Equipment Rental Company

📍 Location: Alabama
💰 Asking Price: $2,750,000
💼 EBITDA: $702,611
📊 Revenue: $1,900,000
📅 Established: 2005

💭 My 2 Cents: This equipment rental company serves industries like renewable energy, marine transport, and construction. In business for 20 years, they have built a reputation for reliability, environmentally friendly practices, and high-touch service, working with clients from project inception through completion. I’d want to look into how diversified their client base is across different industries, if there are any client concentration issues, their typical client lifetime value, and who their key competitors are. I’d also want to explore the current utilization rate of their rental equipment, how they handle maintenance and repairs, and their typical annual expenditure on new equipment. There seems to be a relatively low amount of equipment included in the FF&E, so I’d need to understand if this is all their stock for rental or if they otherwise source equipment for their clients. If that all checks out, then I really like how committed the seller is to the ongoing success of the business, as they are looking to retain 10% ownership, are offering $1.25M of financing to be paid back over 10 years, and are open to working as a consultant for the lifespan of the loan.

5/ Flooring Business

📍 Location: South Carolina
💰 Asking Price: $3,499,000
💼 EBITDA: $1,195,735
📊 Revenue: $3,000,991
📅 Established: 2017

💭 My 2 Cents: This award-winning flooring business offers custom solutions for both residential and commercial clients. I really like how their focus on premium materials and high-quality installations has led to a very nice cash flow with fabulous margins for their industry. They’ve clearly identified a profitable niche in the market where they’re very successfully marketing their services through multiple channels. I also like their prime location in the Charleston area, modern showroom, and strong online reviews indicating a loyal client base. I’d want to find out their revenue breakdown from residential versus commercial projects, how new projects are sourced and what percentage of their business comes from walk-in traffic, if they are involved in bidding on commercial contracts, who their main competitors are, and if they have any exclusive distribution agreements with suppliers. I’d also want to know how dependent they are on local economic conditions and how scalable they might be for regional or national expansion. While flooring is largely a project-based business, it still seems like a great opportunity given this company’s proven track record.