New Deals: An aluminum enclosure company, commercial flooring business, and 3 other finds

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NEW DEALS

1/ Aluminum Enclosure Company

📍 Location: Brevard County, Florida
💰 Asking Price: $1,500,000
💼 EBITDA: $576,360
📊 Revenue: $1,429,314
📅 Established: 1981

💭 My 2 Cents: This company has provided high-quality aluminum construction services for over four decades. I really like their long track record as this suggests that over time they have built an excellent reputation and acquired a loyal client base with lots of repeat business and referrals. I also like their Florida location, as the ongoing growth and temperate climate mean consistent demand for their offerings. The business is housed in an ample-sized warehouse and operates with an experienced team that includes an estimator, so a new owner should be set up for a seamless transition. I’d want to review their financials for the past three years to see how revenues and earnings are distributed across their different type of projects, and I’d want to know more about who their main customers are, how they source new work, and their current and projected upcoming workload. I’d also need to check on the condition of the equipment included in the sale, the licenses and certifications required to operate the business and if these are transferable post-sale, and the extent of the current owner’s day-to-day involvement. If you’re able to expand the marketing effort and the workforce so you’re able to take on more projects, this business could be a real winner.

2/ Commercial Flooring Business

📍 Location: Maricopa County, Arizona
💰 Asking Price: $7,500,000
💼 EBITDA: $3,207,076
📊 Revenue: $17,017,404
📅 Established: 1989

💭 My 2 Cents: This high-end commercial flooring business serves clients from luxury hotels and corporate offices to upscale retail spaces. In business since 1989, they are known for their custom installations, sustainable materials, and innovative flooring solutions. It’s always good to see a company with this long a history in a competitive market, as it points to how they have maintained a strong reputation over many years, while their focus on sustainability helps differentiate them from their competitors. One thing that really stands out about this deal is their extremely high cash flow relative to their asking price. Given this, I’d need to dig into their numbers over the past five years to check on the consistency of their revenue and cash flow during Covid and other market fluctuations. I’d also want to know their current work in progress and contracted backlog, who their main competition is, how they win new clients, the qualifications and experience of their staff, the value and condition of any equipment or inventory included in the sale, and if there are any pending legal issues or liabilities. If that all checks out, then you could grow this business by adding an online presence and marketing plan, as they currently rely on ‘word of mouth’ referrals, or by expanding into new markets and service lines.

3/ Commercial Plumbing Business

📍 Location: Rochester, New York
💰 Asking Price: $4,000,000
💼 EBITDA: $1,000,000
📊 Revenue: $2,000,000
📅 Established: N/A

💭 My 2 Cents: As regular readers know, plumbing is always high on my list of boring businesses. And there’s a lot about this particular plumber that I like. To start, the owner has identified where the highest margin segment of the industry is in his area and focused all of his efforts there, with 75% of their revenue coming from commercial maintenance jobs. Add to this that the business has hundreds of 5-star reviews, a customer database of over 24,000 past clients, and an owner who is willing to stay on as an employee for up to three years post-sale, and things begin to look pretty good. While the owner has historically avoided new construction or retrofits, these could be low-hanging fruits for growth. I’d want to check on the consistency of their earnings and margins over the past three years, who their main clients are, their client churn rate and average lifetime value, their process for acquiring new clients, and the level of competition in their market. I’d also need more detail on the size and different roles of their staff, any equipment and inventory included in the sale, and the facility from which they operate. Finally, because they used to be a plumbing and HVAC business, I’d be curious why they dropped the HVAC and whether it’s worth adding back in.

4/ Moving Company

📍 Location: New Albany, Indiana
💰 Asking Price: $1,500,000
💼 EBITDA: $550,000
📊 Revenue: $2,500,000
📅 Established: 2016

💭 My 2 Cents: What’s not to like about this moving company? They have great margins, a fleet of 10 well-maintained and fully paid-off trucks, over 2,500 positive reviews, and an A+ rating from the Better Business Bureau. While they’re not in a very sexy space, movers are always needed and this company’s low overhead, given they’re home-based, means there’s a lot of opportunity for an aggressive new owner to scale. I also like that they have 16 different sources to capture new leads, so their marketing and sales are already poised to support further growth. In an industry with a lot of competition, I’d want to better understand their current lead sources and marketing strategy, who their key competitors are, if they are more of a low-cost or high-quality operation, who their clients tend to be, and if there is much repeat business. I’d also need to ask about any geographic limitations on their operations, the condition of their fleet and equipment, and if there are any challenges in finding or retaining staff (especially drivers). Ultimately, I think this business has serious growth potential, which is only enhanced by the owner’s willingness to stay on for up to two years to aid in the transition.

5/ Passenger Transportation Company

📍 Location: Franklin County, Ohio
💰 Asking Price: $14,000,000
💼 EBITDA: $4,000,000
📊 Revenue: $10,000,000
📅 Established: 2003

💭 My 2 Cents: This passenger transportation company has carved out a great niche offering charter bus services in 350 cities across Ohio and neighboring states. Boasting a 7,500 sq ft facility that includes a full mechanic shop and a fleet of approximately 50 vehicles, they serve a robust client base that includes hospitals, hotels, and businesses. I really appreciate the scale and scope of their operation, as they have been able to leverage their large fleet and strong client base into consistent growth in both revenues and profitability. I also like how there is substantial asset value in the fleet included in the sale and that they have an experienced management and skilled staff that includes drivers and mechanics, setting them up well for future growth, particularly through expanding into new markets or service lines. I’d need to get a handle on the condition of the fleet and any pending replacement issues, the extent and condition of the equipment in the mechanic shop, and which key staff would be staying on post-transition. I’d also want to look into the revenue breakdown between their different transportation services over the past three years, their client retention rate, any client concentration issues, if they face much competition, how they acquire new clients, and any licensing requirements. With the owner offering full training and support free of charge, this could be a rare chance for a new buyer to walk into an already high-performing company.