New Deals: A gas station, auto glass repair business, and 3 other finds

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NEW DEALS

1/ Gas Station and Convenience Store with Property

📍 Location: Pennsylvania
💰 Asking Price: $3,600,000
💼 EBITDA: $825,000
📊 Revenue: $4,830,000
📅 Established: N/A

💭 My 2 Cents: Gas stations are great, stable, cash-flowing businesses. This particular high-volume gas station and convenience store generates revenue from fuel and store sales, the lottery, and ATM commissions. The 3.5-acre property includes a shovel-ready permit to build a larger store, car wash, and expanded fueling stations. One of my general concerns with gas stations is that there can be a challenge increasing revenue if they are already at full capacity, so it’s great that there is clear room for growth here. I also like the option of adding a car wash, as these are also proven cash cows. However, I’d need more detail on the property, including its appraised value, the condition of the current facilities and equipment, and the estimated cost and timeline for the possible expansions. I’d also want to look into how consistent their margins have been over time, the extent of local competition for both gas stations and car washes, and if there are any challenges with staffing. Finally, I’d want to check in on any environmental issues or contamination. Beyond the built-in appeal of a gas station, the multiple revenue streams in place and huge growth potential make this a very attractive option.

2/ Auto Glass Repair and Replacement Business

📍 Location: North Carolina
💰 Asking Price: $1,500,000
💼 EBITDA: $500,000
📊 Revenue: $1,000,000
📅 Established: 1991

💭 My 2 Cents: This decades-old auto glass repair and replacement business has long relationships with transportation and logistics companies, auto dealers, and all major insurance companies. I like that in their zip code there is only one other local competitor, although you will have to deal with the national supplier Safelite Auto Glass. However, If their excellent reputation and local client relationships guarantee that business comes their way, then Safelite shouldn’t be a problem. I’d need to better understand how their services and pricing compare to the local competitor and Safelite, who their key clients are and how they attract new business, how their pricing is structured for insurance claims versus direct customer payments, the condition of the equipment included in the sale, and the role of the owner. If that all checks out, their great margins and always in-demand niche make this a compelling deal.

3/ Plumbing Business

📍 Location: Virginia
💰 Asking Price: $1,499,999
💼 EBITDA: $561,000
📊 Revenue: $3,682,000
📅 Established: 2018

💭 My 2 Cents: For good reason, plumbing companies are one of the darlings of the SMB space as they marry an essential service with a basically recession-proof demand. This absentee-run plumbing business offers a full suite of construction, repair, and maintenance services for both residential and commercial clients. They currently have a staff of 30 that includes office personnel, technicians, and project managers, with the owner only handling payroll and purchasing decisions. I like their multiple revenue streams, while their remote operations model gives a new owner a lot of options on how to manage and grow the business. I also like that the seller is willing to provide financing and is ready to use their licenses to qualify the business for at least a year (and is open to going longer if needed). However, I’d need to get a handle on the revenue split between their different services, the levels of their current backlog and pipeline, how they source and win new jobs, whether there are any dedicated sales personnel, and the condition of their vehicles, other equipment, and facility.

4/ Marine Construction Business

📍 Location: Florida
💰 Asking Price: $1,400,000
💼 EBITDA: $800,000
📊 Revenue: $4,489,527
📅 Established: 2019

💭 My 2 Cents: This marine construction business specializes in seawalls, docks, and other waterfront structures for both residential and commercial clients. I like their niche expertise coupled with their Florida location, as there should be no shortage of need for their services given the extensive shoreline and waterfront property in the area. I also really like their six months of work in the pipeline and the massive amount of equipment, valued at $1M, included in the sale. Diligence will be needed to verify the real value and condition of this FF&E, but if it includes a lot of highly specialized equipment, this can create a really strong barrier to entry for potential competitors. As an additional plus, I like how the owner is willing to stay on indefinitely in a sales capacity, as it’s always a concern with smaller contractors how important the seller’s relationships are to generating business. I’d need to see their financials for the past five years to check on the consistency of their revenues and earnings. I’d also need to dig into how their standard contracts are structured, their typical profit margin per project, how they source new work, the qualifications and experience of their staff, and what would be involved in expanding beyond their current market. Ultimately, this deal almost sells itself, as in addition to the $1M in FF&E included in the price, they are being offered at a hard-to-beat 1.75x multiple.

5/ Custom Aluminum Fabricator

📍 Location: Florida
💰 Asking Price: $2,500,000
💼 EBITDA: $750,000
📊 Revenue: $5,000,000
📅 Established: 1996

💭 My 2 Cents: This is a business you don’t see every day. This custom aluminum fabricator focuses on the equestrian industry, offering primarily the manufacture and repair of horse stalls, gates, and trailers. I like their Florida location as they’re in an area with a lot of demand for high-end equestrian products and likely have an affluent and discerning clientele. Given their long history and stellar reputation, they’ve probaby developed a very high level of skill and expertise, providing a great barrier to competition as these can’t be replicated overnight. I also like that there are several key employees willing to stay on through a transition and that the seller is committed to providing as much training as needed for a new owner to thrive. I’d need to explore who their key customers are, their level of repeat business, if they face much competition in their local market, the roles and responsibilities of their staff, the nature and condition of the $500K in inventory included in the sale, and what possibilities might exist for extending their geographic reach. If that all checks out, this could be a great opportunity for someone really into horses.