New Deals: A car wash, garage door and gate business, and 3 other finds

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NEW DEALS

1/ Car Wash

📍 Location: New York
💰 Asking Price: $3,500,000
💼 EBITDA: $675,000
📊 Revenue: $1,500,000
📅 Established: Over 40 years

💭 My 2 Cents: Car washes are typically great boring businesses. The average American washes their car 1-2 times per month (repeat revenue), and car washes are generally not impacted by economic fluctuations. This car wash, strategically located on a busy road in a densely populated area, has been going strong for over 40 years. I like their loyal customer base, solid staff of 20, 17,500 sq ft facility that can support future expansion, and great long-term lease that runs through 2046. I also see the potential to grow their earnings by adding express wash services. I’d need to review their financials for the past five years to check on the stability and consistency of their margins and profitability. I’d also want to get a handle on the FF&E included in the sale, if there are any pending capital expenditures, how much competition there is within five miles, the day-to-day role of the owner, and the costs associated with bringing on an express wash capabilities. Finally, I’d want to know if they offer any subscription services (if not, that’s another growth opportunity). Car washes have recently been trading at crazy multiples, so this looks like a strong buy at a reasonable asking price.

2/ Garage Door & Gate Business

📍 Location: Arizona
💰 Asking Price: $2,300,000
💼 EBITDA: $533,040
📊 Revenue: $1,411,073
📅 Established: 2014

💭 My 2 Cents: This business specializes in the installation, maintenance, and repair of custom garage doors and automated gates for both residential and commercial clients. I generally like companies like this as it’s an uncomplicated business with high margins that will have consistent demand driven by the maintenance and repair side. I also like their ability to offer energy-efficient options, as new technology in the industry can be expected to drive growth going forward as clients move to replace older systems with more ‘smart’ solutions and sustainable designs. I’d want to better understand the revenue breakdown between their different types of clients and services, if they carry any exclusive products, their level of repeat business (especially on the commercial side which I’m assuming deals with more wear and tear), if there are any seasonality issues, how they attract new clients, and the nature and condition of the $600K in FF&E and inventory included in the sale. Overall, this looks like a nicely profitable business poised to continue to thrive in an increasingly energy-efficiency-conscious future.

3/ Commercial & Industrial Plumbing and HVAC Business

📍 Location: New York
💰 Asking Price: $2,495,000
💼 EBITDA: $647,912
📊 Revenue: $3,134,930
📅 Established: 1989

💭 My 2 Cents: I like how this HVAC and plumbing business has carved out a niche with the size of client and job they generally handle. They look to take on commercial projects beyond the scope of competitors who cater to residents while still being able to serve clients too small for many of the commercial-only providers. As a result, they face only limited direct competition in their area. I also like that they have many recurring maintenance contracts, managers who will transfer with the business, and $140K of work-in-progress and $500K of backlogged projects, providing a new owner with a decent runway of guaranteed work post-transaction. I’d want more details on their maintenance contracts, including their standard terms and the percentage of the revenues they represent. I’d also want more info on their client retention rate, how they bring in new business, and the nature and condition of the equipment included in the sale.

4/ Commercial Glass and Door Company

📍 Location: Florida
💰 Asking Price: $2,250,000
💼 EBITDA: $1,600,000
📊 Revenue: $7,600,000
📅 Established: 2000

💭 My 2 Cents: This company specializes in commercial glass and door fabrication and installation, serving over 200 contractor clients across multiple industries. Providing what is basically an essential service (few buildings don’t need glass fronts and doors), they currently have an impressive $2.5M work backlog. They can handle this volume with their team of 25 as they have an innovative business model where they work with a staffing agency to utilize subcontractors for installation jobs. Because of this scale, they have direct relationships with suppliers and do not need distributors to source materials, providing them a clear advantage over competitors in pricing and lead times. I’d need a more detailed picture of their facility, including its size, equipment, current utilization rate, and capacity to handle additional business without new investment. I’d also want to know how they source new work, the qualifications and experience of their staff, and, with the owner largely hands-off, what would be required to replace him. This deal offers a proven revenue producer with solid margins, while their on-site fabrication capabilities should provide some scalability for a new owner looking to expand.

5/ Window Covering Company

📍 Location: Colorado
💰 Asking Price: $1,180,000
💼 EBITDA: $500,000
📊 Revenue: $1,340,000
📅 Established: 2009

💭 My 2 Cents: This is a relatively simple business in a small but affluent and growing market. They have a solid 15-year track record, becoming their community’s go-to supplier for the sale, installation, and maintenance of window coverings, serving residential, commercial, and new construction clients. I like their excellent reputation, knowledgeable staff, consistent earnings, and great margins. However, I’d want to get a handle on their revenue split between product sales and installation, their rate of repeat business, who their key local competitors are, if they face much competition from national brands, how they bring in new business, and how reliant they are on the current owner and what would be involved in replacing them. I’d also be curious about the opportunities to scale to a larger geographic area outside their current market. One tip: Check on the status of outstanding warranties as these represent potential future costs for repairs and replacements that you may inherit.