📢 Deal Alert - 5/23/24

Welcome to this week’s edition of Acquisition Alert!

Every Thursday morning you will get 5 of our favorite SMB deals from around the country.

🤝 To see more deals, please visit our website.

📋 For our exclusive, off-market company lists, click here.

-Harry & Carter

(P.S. Follow us on Twitter and Instagram for additional SMB info)

Table of Contents

• Waste Management & Recycling

• Genetic Testing Laboratory

• Fiber Cable Manufacturing Business

• Yacht Chartering Business

• Industrial Equipment Maintenance & Repair

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1. Waste Management & Recycling Business

• Location: Austin, TX

• Asking Price: $750,000

• EBITDA: $191,000

• Multiple: 3.93x

• Revenue: $1,692,000

• EBITDA Margin: 11% 

• Employees: 12

• List Date: 5/20/2024 

• Reason for selling: Retirement 

💬 Harry & Carter’s thoughts:

Waste management companies are near synonymous with the term ‘mission-critical’, which is why we like them. This business is relatively new (established in 2017) but boasts double-digit YoY growth. While the margins are a little thin (11%) for our liking, this is common for smaller, young companies that need to grow in order to spread out the overhead costs. We like that the business has 2 managers in place, as well as 10 employees who understand the day-to-day operations.

• 2 experienced managers in place

• Includes 4 trucks & 8 containers

• 2 revenue streams:

  • Junk removal services

  • Reselling of junk

• No known competitors in the area

❓️What is the current geographic footprint of the company?
❓️Does the business have long-term contracts in place?
❓️What is the percentage of customer concentration?

Inquire:

Link to listing here

Broker: US Businesses for Sale

Contact: NA

2. Genetic Testing Laboratory

• Location: Seattle, WA

• Asking Price: $1,100,000

• EBITDA: $250,000

• Multiple: 4.4x

• Revenue: $1,230,000

• EBITDA Margin: 20% 

• Employees: 10

• List Date: 5/17/2024 

• Reason for selling: Retirement

💬 Harry & Carter’s thoughts:

Since 1981, this genetic testing company has been operating out of Seattle and growing at a gradual pace. The laboratory comes fully equipped for molecular, genetic and pathology testing, and resides in a 4,000 sq ft space that rents for $10,000/month. They have contracts with many large health insurance providers (listing states exact companies). We would like to know more about these contracts and if they are providing consistent revenue to the lab.

• 10 employees

• CLIA & CAP certifications

• $550,000 down payment

• Seller financing available

❓️What is the customer concentration of the insurance contracts?
❓️What is the current owner’s involvement with the day-to-day operations?
❓️What are the specifics of these insurance contracts?

Inquire:

Link to listing here

Broker: Sasa Milosevic

Contact: 310-922-0936

3. Fiber Cable Manufacturing Business

• Location: Texas

• Asking Price: $1,650,000

• EBITDA: $276,000

• Multiple: 6.0x

• Revenue: $2,727,306

• EBITDA Margin: 10%

• Employees: 19

• List Date: 5/21/2024 

• Reason for selling: Retirement 

💬 Harry & Carter’s thoughts: 

For over 20 years, this specialty cable manufacturer has provided a wide range of fiber, copper, and optical cable products to trusted clients, indicating significant brand goodwill and a strong reputation. Their custom cable and optical assemblies follow ISO procedures, a gold standard in manufacturing. The company's quality controls are robust, with every fiber optic cable tested and serialized for traceability, and test data archived and included with all orders. As many of our readers know, we favor niche manufacturing businesses, and this one is exceptionally specialized.

• ISO complicit

• Niche manufacturing

• ‘Just-in-time’ manufacturing process

• FF&E: $1,016,146 (included in asking price)

❓️Are there any licenses required for the new owner?
❓️What is the product/service revenue breakdown?
❓️What is the owner’s role in the business?

Inquire:

Link to listing here

Broker: BusinessBroker.net

Contact: NA

4. Yacht Chartering Business

• Location: Miami, FL

• Asking Price: $2,700,000

• EBITDA: $840,000

• Multiple: 3.2x

• Revenue: $8,000,000

• EBITDA Margin: 11%

• Employees: 3 

• List Date: 5/20/24 

• Reason for selling: Moving

💬 Harry & Carter’s thoughts: 

Operating for 28 years, this yacht chartering business is one of only five commercial passenger boats permitted in Miami. The yacht is 92 feet long with a capacity of 137 people. It appears to have passed all inspections and is in good condition, though verification is recommended. One of the most appealing aspects of this deal is the owner's offer to finance over 80% of the purchase for 60 months at 0% interest. For the right buyer, this is a great opportunity.

• Clean books

• Seller financing available (80%!)

• 1 of 5 commercial passenger boats allowed to operate in Miami

• Low competition

❓️What is the value of the boat?
❓️What are maintenance costs associated with the boat?
❓️Do you have all the historical maintenance records?
❓️What is the owner’s role in the business?

Inquire:

Link to listing here

Broker: Eric Wayne (Businessbroker.net)

Contact: N/A

5. Industrial Equipment Maintenance & Repair

• Location: Louisville, KY

• Asking Price: $2,900,000 (RE Included)

• EBITDA: $273,027

• Multiple: 10.6x

• Revenue: 1,212,739

• EBITDA Margin: 23% 

• Employees: 11

• List Date: 5/20/24

• Reason for selling: Retirement 

💬 Harry & Carter’s thoughts: 

For over 40 years, this company has specialized in maintenance and repair services for industrial, agricultural, aviation, and construction equipment. They possess unique market expertise and face minimal competition. The listing highlights consistent repeat business and a self-sufficient staff, with the possibility for absentee ownership. Industrial equipment service companies are essential “mission critical” businesses especially with an independent and skilled team in place.

• Potential for absentee ownership

• Repeat/recurring revenue

• Bank pre-qualified

• Seller financing available

❓️How much is the real estate worth?
❓️Do you have contracts with clients or just relationship based?
❓️What is the value of the equipment?
❓️How long does this equipment last before it needs to be replaced?

Inquire:

Link to listing here

Broker: Business Brokers & Consultants

Contact: N/A

What We’re Reading

• Search Funds & Entrepreneurial Acquisitions by Jan Simon

Thanks for reading and don’t hesitate to reach out! - Harry & Carter

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