New Deals: A fiberglass pool installation company, artificial turf business, and 3 other finds

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NEW DEALS

1/ Fiberglass Pool Installation Company

📍 Location: Florida
💰 Asking Price: $1,190,000
💼 EBITDA: $633,435
📊 Revenue: $2,954,104
📅 Established: 2007

💭 My 2 Cents: This company designs and installs high-quality fiberglass pools in Florida, where there’s a ton of demand. I really like how they differentiate themselves with features like built-in spas, swim jets, children’s splash areas, and tanning ledges. Relatedly, I also like that they have 32 exclusive design patents that protect their proprietary products and that they’ve been recognized with prestigious awards from the Association of Pool and Spa Professionals (APSP) and Aqua Magazine. I’d be curious as to who their primary customers are, whether they sell directly to homeowners or also work with developers and general contractors, what their sales and marketing process is like, and who their main competition is. I’m assuming they have a relatively steady workflow, but I’d want to check their performance over the past 5 years and I’d want to see what their current backlog for future projects is. Finally, I’d want to know the role of the design patents in their business, whether they subcontract any of their work, and what the owner’s day-to-day responsibilities are. Overall, though, with the owner willing to provide their license for a year until you get your own, this looks like a nice opportunity if you can further set yourself apart from the competition.

2/ Artificial Turf Business

📍 Location: Dallas, Texas
💰 Asking Price: $8,500,000
💼 EBITDA: $2,862,393
📊 Revenue: $4,875,812
📅 Established: 2017

💭 My 2 Cents: This company is in an industry that I really like, as artificial turf has a long lifespan, requires little upkeep, fits with the increasing demand for water conservation and low-maintenance landscaping, and stands to benefit from the growth in regulations promoting water-saving initiatives. I like how they serve a diverse range of clients, from residences to sports facilities, as this provides multiple revenue streams while leaving a lot of room for expansion. I also like their ability to work on small and large projects, their impressive margins, and their very minimal advertising, having only a Facebook page and no website, as this means there’s likely still room to grow with a real marketing effort. I’d want to know the breakdown in revenues between residential, commercial, and municipal clients, the terms of their standard customer contract, what their supplier relationships are like, whether there is any risk of cost increases going forward, if market rent is included in the cash flow, and what it would cost to find a suitable new facility in the area. I’d also want to get a handle on how they gain new business, if they are often involved in competitive bidding, how they differentiate themselves from competitors, and what the qualifications and experience levels of their staff are. If that all checks out, then this looks like a really good deal when you account for the $2.86M in FF&E and $1M in inventory included in the sale price.

3/ Solar and Electrical Business

📍 Location: California
💰 Asking Price: $2,999,000
💼 EBITDA: $605,321
📊 Revenue: $12,291,476
📅 Established: 2004

💭 My 2 Cents: This full-service solar and electrical business specializes in both residential and commercial solar energy solutions, including energy storage and EV charging. With 50 employees, they currently complete 100-150 projects per year and, promisingly, have the capacity to handle many more. One neat feature is that their office operates as an islanded microgrid, allowing them to use it as a demonstration of how commercial properties can be completely off-grid. I also like that about 10% of their revenue comes from electrical contracting jobs, which helps to diversify their operations and insulate them from a downturn in solar projects. On an industry level, I like that there are federal and state incentives driving long-term growth in the clean energy sector and, in their home state of California, increasing demand for renewable energy solutions to the very high local energy costs. On the downside, there is a lot of competition in California’s solar market, potential changes in government incentives and regulations could impact profitability, and rapid advancements in solar technology may require continuous investment in new equipment. So, I’d want to better understand how government incentives currently impact their revenue and cash flow numbers, how much of their business is residential versus commercial, who their main customers are, and how they distinguish themselves from their competitors. Staffing is key in a technical business like this, so I’d need to dig into the different capabilities of the staff and who is slated to remain post-transition. Finally, I’d want to know the condition of the equipment and inventory included in the sale.

4/ Residential HVAC Contractor

📍 Location: Arkansas
💰 Asking Price: $2,300,000
💼 EBITDA: $738,088
📊 Revenue: $1,893,458
📅 Established: 2002

💭 My 2 Cents: HVAC is the poster boy for boring businesses, as it's an essential service that’s always in demand and has solid margins. I like that this company has been in business for 22 years, generates strong cash flow, and has a diverse client base that is 90% residential and 10% commercial. I also like that they have stable recurring revenue with over 150 maintenance agreements and that their overhead is low due to an outsourced payroll system and flat-rate pricing model. And, with no CRM in place and only about 5% of revenue coming from new construction, a new owner could expand by bringing in market-standard sales processes or by picking up more new construction jobs. I’d want to dig into the split in their revenues between residential and commercial clients, the scope and terms of their 150+ maintenance agreements, how they acquire and retain clients, and what their competition is like. I’d also want to check on what equipment and inventory are included in the sale, what certifications and experience the staff have, and what will be involved in replacing the owner.

5/ Waste Management Company

📍 Location: Silver Spring, Maryland
💰 Asking Price: $1,500,000
💼 EBITDA: $465,220
📊 Revenue: $1,913,966
📅 Established: 1997

💭 My 2 Cents: This SBA-pre-qualified waste management company is an awesome unsexy business. It’s consistent, boring, and creates great cash flow. This particular company offers residential trash collection, commercial waste management, recycling programs, and specialized waste removal services. I really like that they have been in business for over 40 years, have strong net margins averaging nearly 25%, and generate over 80% of their sales from repeat customers. They’ve also built out a robust online platform that offers a user-friendly interface for scheduling services, managing accounts, and accessing valuable resources on waste management and sustainability. Waste management requires different equipment, so I’d need to know the value and condition of the equipment included in the sale. I’d also want to look into their breakdown in revenue from their different types of clients, standard contract terms and duration, client retention and churn rates, current marketing and sales strategy, and how they compete for new business. Finally, I would ask how they manage compliance with local and federal waste management regulations. With a growing emphasis on recycling and waste reduction, along with expanding urban areas and population growth, this should be a business with both steady cash flow and a lot of upside.