New Deals: An appliance repair business, express delivery courier, and 3 other finds

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NEW DEALS

1/ Appliance Repair Business

📍 Location: South Carolina
💰 Asking Price: $2,600,000
💼 EBITDA: $592,000
📊 Revenue: $2,854,940
📅 Established: 1999

💭 My 2 Cents: This 25-year-old appliance repair company has built a strong reputation with customers from homeowners to real estate developers. I really like how they effectively provide an essential service. If your dishwasher breaks, you need to get it fixed. End of story. If anything, a downturn could increase the demand for their services as more homeowners decide to repair and extend the life of their appliances as opposed to purchasing new ones. I’d be curious as to what appliances and brands they handle, the licensing and certification requirements needed to operate the business, and if there are any challenges in hiring or retaining skilled technicians. I’d also need to understand the owner’s role, the plan for replacing them, their revenue breakdown by customer type, how they source new business, who their main competition is, and the possibilities for expanding their services or geographic reach. Given their consistent revenue and very solid margins, this looks like a nice opportunity for someone looking to get into the appliance space.

2/ Express Delivery Courier

📍 Location: California
💰 Asking Price: $3,500,000
💼 EBITDA: $701,566
📊 Revenue: $3,076,858
📅 Established: 1988

💭 My 2 Cents: As you and your Amazon account know, the demand for delivery services has skyrocketed in recent years. This company offers courier and delivery services to customers throughout Southern California. A real positive is how they provide services from legal and medical deliveries to refrigerated transport, as this helps insulate them from a downturn in any specific sector of the economy. I also like that they have been in business for over 35 years. This indicates an established management team with the skill set and capabilities to run the business post-transition, giving a new owner a solid base from which to build. Add in the fact that they have a clear system in place for utilizing outside contractors, and you have a business designed to scale without significant capital investment. I’d want to dig into the revenue split between their different services, their levels of repeat and recurring business, the process for customers scheduling their services, and how much competition they face across their market. I’d also need to check on the value and condition of the fleet and equipment included in the sale and if there are any pending capital expenditures. Finally, I’d want to explore what additional resources might be needed to support their continued growth.

3/ Fencing Company

📍 Location: North Carolina
💰 Asking Price: $2,250,000
💼 EBITDA: $800,000
📊 Revenue: $2,256,000
📅 Established: 1986

💭 My 2 Cents: This fencing company has going for them an extremely long history, a simple operation with no W-2 employees, and strong margins. I especially like that they enjoy a long-standing relationship with a key manufacturer that allows them access to favorable pricing for materials and that they have a steady backlog of signed contracts worth approximately $500K. I also like that they have recently invested in revamping their website and SEO and are already seeing increased inbound leads, as consistent lead volume is critical to a project-based business like this one. Given that there are no W-2 employees, it is critical to understand the company’s staffing and business model. I’d need to pin down how they staff their jobs, their relationship with subcontractors, and their quality control measures. I’d also need to explore how much local competition they face, their average cost per lead through paid traffic, how their online reviews look, and what it will take to expand the geographic radius they serve (this is key to additional scale). Assuming everything checks out, this looks like a proven cash producer with growth potential.

4/ HVAC Business

📍 Location: Florida
💰 Asking Price: $2,900,000
💼 EBITDA: $750,000
📊 Revenue: $2,900,000
📅 Established: 2003

💭 My 2 Cents: It almost goes without saying that HVAC is indispensable to life in Florida. There is a huge amount of demand there, but also an awful lot of competition. This company has the long history, loyal clients, and stellar reputation needed to differentiate itself in the crowded Florida landscape. I like how they focus on residential projects, doing over 300 changeouts each year that bring in a very consistent revenue stream. They currently do very little advertising (less than $20,000 spent annually), so a new owner could invest in new marketing strategies to further boost earnings. They’re also basically turnkey, as their 14 experienced employees operate with minimal involvement from the current owner. I’d need to look into how their revenue is distributed between system replacements and maintenance/repairs, if there is much repeat business (many homeowners sign up for annual maintenance contracts with HVAC companies), how they acquire new clients, what employee(s) hold key licenses (and whether there is a redundancy), and the condition and projected lifespan of their fleet and equipment. Overall, this business looks ripe for expansion if a new owner can introduce some fresh marketing strategies.

5/ Commercial Interior Design Firm

📍 Location: New Jersey
💰 Asking Price: $2,070,000
💼 EBITDA: $770,000
📊 Revenue: $3,000,000
📅 Established: 1990

💭 My 2 Cents: This interior design and build company has been serving niche commercial clients for over 35 years. I really like their longevity, loyal client base, and high operating margins. It’ll be important to understand exactly what type of work they do and who their clients are, but if they have carved out a truly distinctive niche, this should mean they now have a great stable base of repeat revenue. I always appreciate when a business is able to stake out a unique corner for themselves and achieve expertise in what they do. While everything looks promising, I’d want to see their financials for the last five years to ensure the consistency of their revenue and earnings. I’d need detailed info on who their key clients are, what their average job looks like, if there is a current backlog or pipeline, how they source new business and if bidding is involved, and who their main competitors are. I’d also want to know the qualifications and experience of their staff, and the current owner’s level of involvement in the business. Considering that they are SBA-approved with $250K of assets included in the sale and the owner offering up to $400K in seller financing, this looks like a business that the sellers are very confident in succeeding going forward, which is always nice to see.