New Deals: A chimney company, collision repair company, and 3 other finds

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NEW DEALS

1/ Chimney Company

📍 Location: Portland, Oregon
💰 Asking Price: $3,450,000
💼 EBITDA: $780,000
📊 Revenue: $3,048,000
📅 Established: 1979

💭 My 2 Cents: Did you know chimneys are trending? 60% of new homes have a fireplace, up from 36% in the 1970s. And because of this, there is demand year-round for this business's cleaning, repair, and construction services. I like their mix of commercial and residential clients and how these complementary revenue streams support their significant cash flow and strong margins. Even better is that this business is currently absentee-owned with a well-trained team and updated systems and processes in place, so it should be an easy transition. However, I’m always wary of absentee-owner claims, so I’d want to really dig into the current owner’s role and who manages the day-to-day operations. I’d also be curious as to their breakdown between new builds vs maintenance, as well as commercial vs residential work. Finally, I’d want to dive into how they acquire new clients since lead generation is the lifeblood of any project-based business.

2/ Collision Repair Company

📍 Location: Arizona
💰 Asking Price: $4,800,000
💼 EBITDA: $1,301,363
📊 Revenue: $2,214,851
📅 Established: 2016

💭 My 2 Cents: In our car-filled world, there is always a need for collision repair work. This very profitable collision repair company focuses on higher-value repair jobs ($13K to $15K per claim) and works 100% through insurance companies for billing, so they don’t face payment issues. I like their variety of revenue sources, with 50% of their business from repeat customers, 20% from Google, and 30% from referrals. I also like their lean staffing and low overhead, that no special licensing or certification is required for their operation, and that they are one of the largest customers in the nation for their parts supplier, meaning they should have decent control over their cost inputs. I’d need to see their financials for the past five years to confirm the consistency of their revenues, earnings, and the number of jobs they routinely do. I’d also need to look into if there are ever any staffing challenges given their reliance on subcontractors, if there are any risks in working without formal contracts with insurance companies, how they set themselves apart from their competition, how involved the current owners are and what it would take to replace them, and what would be needed to support an expansion. Assuming everything checks out, this looks like a high-margin business with further growth potential.

3/ Copy Machine Company

📍 Location: Colorado
💰 Asking Price: $3,199,000
💼 EBITDA: $893,486
📊 Revenue: $5,009,361
📅 Established: 1993

💭 My 2 Cents: This company provides copier and office equipment sales, maintenance, and services for a loyal client base built over their 30+ years in operation. Some 99% of their clients are under recurring service agreements, which keeps them tightly connected to the business and likely drives future orders when they need new equipment. I like their multiple revenue streams, with the service agreements helping ensure a reliable cash flow, and that they are a longstanding authorized dealer for Kyocera, as this not only adds value to the business but positions them for future growth. I’d need to better understand their business model, including how they carry their inventory and the costs involved, the different options customers have in purchasing new equipment, if they are the exclusive dealer for Kyocera in their area, and what other products they carry. I’d also want to explore how they find new customers, who their key competitors are, their reliance on the owner, and what possibilities exist for expanding their offerings or market reach.

4/ Email Marketing Agency

📍 Location: Remote
💰 Asking Price: $5,999,999
💼 EBITDA: $1,819,262
📊 Revenue: $3,124,547
📅 Established: 2002

💭 My 2 Cents: There’s a good reason why marketing agencies are so hot: they’re high-margin, come with a lot of recurring revenue, are scalable, and are generally run remotely. This one is no different—it operates remotely with a staff of 8 and clients around the country. But what separates it is the business’s average client tenure of 6 years (with some clients that have been with the company for 10 to 20 years). This level of customer retention is really uncommon in the marketing agency space. On top of that, they currently do no outbound advertising, relying entirely on repeat business and referrals, so there is definitely room to grow for a motivated owner. There’s also room to expand service offerings (SMS marketing, SEO, PPC). I'd want to ask about the industries their clients represent (I bet they’re pretty niche given how sticky they are), any client concentration issues, and their different staff roles and responsibilities. The business is SBA pre-approved, so they should be able to show stability in their earnings over time, and the owner is willing to negotiate a prolonged work agreement post-sale. This should help ensure as smooth a transition as possible and points to the owner’s confidence in the ongoing success of the business.

5/ Harley-Davidson Dealership

📍 Location: N/A
💰 Asking Price: $8,650,000
💼 EBITDA: $2,100,000
📊 Revenue: $23,000,000
📅 Established: N/A

💭 My 2 Cents: If you have any interest in motorcycles, you know that a deal to buy a business like this doesn’t come along every day. This Harley-Davidson dealership is a dominant player in its market territory, selling approximately 800 new and used motorcycles each year, along with associated parts, accessories, and apparel. They boast an iconic brand name, a loyal customer base, a large and attractive facility well-equipped with all necessary fixtures and equipment, and a comprehensive service department. Being a franchisee, they also come with significant support from the corporate entity. At the same time, franchises are a different animal, as they come with less freedom and flexibility than a standalone company. I’d need to intimately understand the details of the franchise agreement here, including the sharing of revenues and costs, any requirements or restrictions on the franchisee, and any limits on competition or market territory. I’d also need to get a handle on the revenue split between their different sales and services, their inventory costs and average working capital, how they market to new customers, their staff’s qualifications and experience, the condition of their FF&E and inventory, and the day-to-day role of the owner. With their iconic brand name, significant cash flow, and substantial FF&E and inventory, this business could be a really interesting opportunity for the right buyer.