New Deals: A physical security systems company, window and door company, and 3 other finds

Sign Up | Podcast | Sell Your Business | Work With Me

NEW DEALS

1/ Physical Security Systems Company

📍 Location: New Jersey
💰 Asking Price: N/A
💼 EBITDA: $1,200,000
📊 Revenue: $6,200,000
📅 Established: 1925

💭 My 2 Cents: It’s hard to overstate the importance of the physical security industry, as every time you lock a front door or install a camera, you are using their products or services. This company, which has been in business for almost 100 years, has separate electronic and mechanical security divisions that support clients in New York, New Jersey, and Pennsylvania. In addition to their long history and established client base, I like how their electronic division offers hosted monitoring services that generate a solid stream of recurring revenue, while their mechanical division includes a full-service locksmith that responds to thousands of calls annually. There should also be some nice growth potential here, as their broad market reach positions them to take advantage of strong tailwinds in the space (the US market is expected to grow at a CAGR of 5.7% from 2024 to 2030). I’d want to better understand the revenue split between their two divisions, their levels of repeat business and recurring revenue, how they acquire new clients, how much competition they face, and the roles and responsibilities of their 21 employees. I’d also want to look into what specific opportunities exist for expanding their offerings or geographic areas. Ultimately, their extraordinary track record and diverse capabilities make this a deal absolutely worth digging into.

2/ Window and Door Company

📍 Location: Florida
💰 Asking Price: $3,500,000
💼 EBITDA: $921,278
📊 Revenue: $4,580,681
📅 Established: 1981

💭 My 2 Cents: This award-winning company specializes in high-impact resistant doors and windows for residential and commercial clients. I love their Florida location, as their products and services are especially necessary in an area prone to hurricanes and other strong weather. Other real positives are their excellent reputation earned over 40+ years in business and their facilities that include a showroom, service production area, storage area, and garage. This real estate, valued at $900K, is included in the sale, along with $400K of FF&E, meaning you are acquiring tangible assets worth almost 40% of the asking price. However, I’d need to check on the condition of the real estate and the FF&E, particularly any vehicles or equipment in the fabrication shop. I’d also need to get a handle on the revenue breakdown between their residential and commercial clients, if there is any seasonality to the business, how they source new clients (since project-based businesses live and die by how strong their lead generation is), who their main competition is and how their reviews and pricing compare, and the qualifications and experience of the staff. This company already has steady cash flow, so a new owner could look to leverage this base for further growth given the ongoing commercial and residential development in their area.

3/ B2B Promotional Products Business

📍 Location: Indiana
💰 Asking Price: $6,700,000
💼 EBITDA: $724,514
📊 Revenue: $12,405,303
📅 Established: 1995

💭 My 2 Cents: This B2B business makes custom promotional products for a wide range of clients. In an industry with a lot of competition, they stand out with a streamlined production process that lets clients easily design and approve their desired products. Another strength is that the owner has worked remotely for 8 years, so the staff is already in place to ensure the company’s smooth operation under a new owner. I also like that their sale includes some $1.5M of real estate and FF&E, so you are acquiring significant assets needed for the business’s continued success. I’d want to review their financials for the last five years to see the revenue breakdown among their different product lines and the consistency of their earnings over time. I’d also want to dig into who their key customers are, if there are any concentration issues, if they have much repeat business or recurring revenue, how they source new work, the condition and projected lifespan of the FF&E, and the responsibilities of the owner such as client relations that would need replacing.

4/ Luxury Party Rental Company

📍 Location: California
💰 Asking Price: $2,995,000
💼 EBITDA: $863,305
📊 Revenue: $2,656,594
📅 Established: N/A

💭 My 2 Cents: This upscale rental business is a one-stop shop for luxury events in the Los Angeles area, offering everything from furniture to decor. I like their over 25 years of experience working with diverse clients and their stellar reputation for high-quality items and service. There can be a lot of competition in this space, so a well-established reputation can go a long way, especially with event planners who care deeply about working with vendors they know they can trust. A huge part of the value of this company is in the inventory, so it will be extremely important to understand what it is truly worth, how it stacks up to those of other companies, its current condition, and the capital expenditures involved in keeping it up to date. I’d also want to know who their clients typically are, what seasonality looks like (which is going to be heavily tied to how much of their business is from weddings), and what relationships they have with event planners and other referral sources. Finally, even though the luxury event business tends to be less sensitive to economic conditions, I’d want to confirm the stability of their earnings over time. Assuming this checks out, this should be a solid, boring cash producer.

5/ Commercial Roofing Contractor

📍 Location: Virginia
💰 Asking Price: $1,250,000
💼 EBITDA: $675,000
📊 Revenue: $4,850,000
📅 Established: 2005

💭 My 2 Cents: This contractor focuses on budget-conscious roofing solutions for commercial clients, avoiding large complex projects and instead concentrating on smaller high-turnover contracts. I like their business model with its emphasis on agility and adaptability, steady cash flow, and flexibility to pursue additional growth by expanding to re-roofing services or bidding on smaller federal projects. I’d want to know more about the process for obtaining federal contracts, if they currently are involved in bidding on projects, and what resources would be needed to expand their operations. I’d also want to ask about their revenue split between new installation and repair, how they routinely bring in new business, the qualifications and experience of their staff, who holds licenses in the business, what is included in the FF&E, and what would be involved in replacing the current owner. Overall, this is a necessary business in a large market, making this an interesting opportunity offered at a reasonable purchase price.