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Inside a High-Margin Payment Processing Business | Acquisitions Anonymous Episode 350
This week, Mills and Michael take a deep dive into a payment processing business thatâs both wildly profitable and incredibly niche. With $2.1 million in revenue, 81% EBITDA margins, and a foothold in state agency payment systems, this is the kind of deal that grabs your attention. But is it all itâs cracked up to be?
Hereâs what we cover:
- How it works: The nuts and bolts of processing payments for government agencies.
- The challenges: Long sales cycles, RFP-driven contracts, and slow adoption by municipalities.
- What makes it tick: Is their niche defensible, or just a fluke?
- Valuation speculation: Could this business fetch 10x EBITDA or more?
- Risks and rewards: Customer concentration, market saturation, and the ever-looming competition.
If youâre a strategic acquirer or someone in private equity, this oneâs worth paying attention to. First-time buyers? Maybe not so much.
Why This Episode Stands Out:
1. High-Profit Margins: Seriously, 81%.
2. Niche Market: Payment solutions for state agenciesâcould be genius or a total headache.
3. Growth Potential: Doubling revenue year-over-year is impressive, but is it sustainable?
4. Also, donât miss Mills and Michael sharing some of the best banter weâve had in a whileâthis oneâs as entertaining as it is insightful.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
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Exploring the Business of In-Home Senior Care | Acquisitions Anonymous Episode 349
In this episode of Acquisitions Anonymous, we dive into the world of in-home senior care franchises. Our guest, franchise consultant Connor Groce, joins us to dissect a $5M senior care business for sale, analyzing its strengths, risks, and growth potential.
đ Key Highlights:
- Franchise Insights: How being part of a national franchise network can help with client trust, recruitment, and government contracts.
- Financial Breakdown: $5M asking price, $5.7M revenue, and $1.2M cash flowâdoes this deal make sense?
- Growth Opportunities: The challenges of scaling within a defined franchise territory and exploring adjacent markets.
- Operational Complexity: Managing a people-intensive business while navigating regulatory hurdles and payer risks.
- We also discuss the pros and cons of government contracts, private pay relationships, and the nuanced dynamics of franchise territories.
đ Resources Mentioned:
Acquisition Lab: Accelerating your path to buying a business. Learn more at www.acquisitionlab.com.
VISO Business Capital: Find the best SBA loan for your business acquisition at www.visocap.net.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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Saknas det avsnitt?
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In Episode 348 of Acquisitions Anonymous, we dive into a fascinating e-commerce deal: an Amazon FBA health and wellness supplements business. This business generates over $1M in annual EBITDA while operating just 15 hours a week. With its concentrated revenue from three SKUs and heavy reliance on Amazon as a channel, we explore the risks and rewards of acquiring such a focused operation.
đ Key Highlights:
- Amazon Dependency: 96% of sales from Amazon, with one SKU accounting for 80% of revenue.
- Growth Opportunities: Potential to expand into retail (GNC interest) and other Amazon markets.
- Seller Financing: Why this business doesnât qualify for SBA financing and what that means for buyers.
đĄ Takeaways:
- The challenge of moving a brand off Amazon.
- The risks of concentration in SKUs and sales channels.
- How buyers can structure deals to mitigate these risks.
đ¨âđť Sponsors:
Acquisition Lab: Created by Walker Deibel, author of Buy Then Build, Acquisition Lab is the leading accelerator for serious buyers looking to acquire a business. Learn more at AcquisitionLab.com or email Chelsea Wood directly at [email protected].
HoldCo Conference 2025: The premier event for learning how to manage multiple businesses. Join us in Utah next spring at an all-inclusive mountain resort. Visit HoldCoConference.com.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, hosts Heather Endresen, Bill D'Alessandro, Michael Girdley, Mills Snell, and special guest Chelsea Wood from Acquisition Lab take on a unique dealâa Harley-Davidson dealership listed at $8.6 million with $2.1 million in EBITDA.
This episode is sponsored by Connor Groce â your go-to franchise consultant, helping prospective owners choose the right franchise and avoid common pitfalls. Connect with Connorâs team or attend his Gateway to Franchise Ownership workshop by visiting the link in the show notes. Visit https://www.connorgroce.com/ for more information.
They dig into the complexities of owning a franchise dealership, Harley-Davidsonâs brand challenges with shifting demographics, and whether this iconic brand can attract younger generations or if itâs a risky buy in a declining market.
Key Highlights:
- Generational Shift & Brand Image: The team explores Harleyâs struggle to maintain its appeal as younger generations show less interest in motorcycles, affecting dealership sales and longevity.
- Franchise Dealership Model: Michael explains the razor-and-blade model of franchise dealerships, where profits come more from service, parts, and financing rather than new bike sales.
- Buyer Beware: Chelsea warns about the risks for inexperienced buyers, emphasizing the importance of thorough due diligence and questioning why existing franchise owners havenât picked up this dealership.
- Industry Dynamics: Bill highlights market shifts in power sports and discusses whether Harley-Davidsonâs brand has long-term durability or is facing a âfalling knifeâ situation as sales decline.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode, the Acquisitions Anonymous team dives into the ins and outs of a $32 million waterworks utility contractor business in the Carolinas. With a strong cash flow of $2.3 million, this companyâs focus on installing and maintaining underground utilities for residential and commercial developments makes it a fascinating opportunity for strategic buyers.
Thanks to today's sponsor:
Connor Groce's expertise in product innovation and strategy has driven exceptional growth for numerous brands, both in scaling their presence and creating transformative customer experiences. With a proven track record of blending data-driven insights and creative approaches, Connor helps businesses thrive in competitive markets. Learn more about how Connor's strategic insights and innovative approach can empower your business to reach new heightsâvisit connorgroce.com.
Key Highlights:
Region-Specific Growth Potential: The Carolinas are experiencing strong population growth, making this a potentially lucrative investment. But with heavy dependence on development cycles, how sustainable is this market?
Growth Opportunities and Challenges: The business has a record backlog and is primed for expansion with the right infrastructure and talent. However, labor shortages in the industry and a lack of costing software raise questions about scaling potential.
Ideal Buyer Profile: This episode explores who could be the perfect buyerâpossibly a military veteran looking to leverage government diversity contracts or a strategic acquirer looking to expand their portfolio.
Risk Factors and Due Diligence: From client relationships to transferability of the business, our hosts discuss the potential risks involved in acquiring a contractor with network-based sales and key dependency on skilled personnel.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, Bill, Mills, Michael, Heather, and special guest Connor Groce dive into the deal of a $2.1 million EBITDA drug and alcohol addiction center in the Mountain West. With a 40% profit margin and revenue reaching $100,000 per patient, this addiction centerâs comprehensive care model offers unique insights for prospective buyers.
Our hosts break down the intricate aspects of this business, from the operational costs of running multiple sober houses to the regulatory challenges associated with the addiction treatment industry. With specialized programs like equine and sports therapy, as well as strategic contracts expanding its patient base, this episode explores what makes this center both a compassionate service and a high-revenue investment.
Thanks to this week's sponsor:
Acquisition Lab: Looking to buy a business but donât know where to start? Acquisition Lab, founded by Walker Deibel, author of Buy Then Build, offers a cohort-based, comprehensive education and support community to help you navigate the complexities of acquiring a business. Learn more at https://acquisitionlab.com/ or contact Chelsea Wood at [email protected] for a consultation.
And our additional sponsor:
Viso Business Capital: Looking for funding to fuel your acquisition? Viso Business Capital partners with 30+ lenders to secure the best financing options, fast and without friction. Sign up for a free Q&A session about SBA loans at https://visocap.net/.
Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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Welcome to Acquisitions Anonymous!
In this retrospective episode, we take a deep dive into the unique business model of Smash My Trash. Our special guest, Connor Groce, a franchisee of Smash My Trash, joins us to break down the pros, cons, and surprising challenges of owning a franchise in the trash compaction industry. Discover what went right, what went wrong, and if this B2B sales-heavy model is right for you![Key Takeaways]
Why Connor decided to buy an existing Smash My Trash territoryThe unexpected challenges of working with haulers and navigating B2B salesInsights on franchise maturity and risks for new franchiseesFranchise Disclosure Document (FDD): what it is and what it reveals[Sponsors]
Acquisition Lab:
Thinking about buying a business? Acquisition Lab, founded by Walker Deibel, author of Buy Then Build, offers a cohort-based educational community designed for serious business buyers. Learn more at AcquisitionLab.com or email Chelsea Wood directly at [email protected].VISO Business Capital:
Need financing for a business acquisition? VISO Business Capital helps with SBA loans tailored for business acquisitions, offering over 30 different lenders to find you the best funding. Sign up for a free Q&A session at VisoCap.net, then click "Zoom Signup" at the top right.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this high-stakes episode of Acquisitions Anonymous, all four hosts tackle a controversial, intriguing listing: the bankruptcy assets of Infowars, the infamous media company led by Alex Jones. With humor and insight, the team dives into the unusual opportunity to acquire assets from this high-profile, politically charged brand, including intellectual property, production studios, a vast e-commerce business, and more. They discuss the potential risks, the wild history of Infowarsâ reach, and consider how someone might leverage these assets creativelyâor if itâs simply too toxic a deal.
This breakdown explores:
The business model of e-commerce for influencers and Infowarsâ strategyLegal implications of purchasing Infowars' assetsThe high-margin, supplement-heavy e-commerce store driving revenueThe fascinating idea of repurposing Infowars into a Museum of Conspiracy TheoriesThe potential liabilities and limitations of rebrandingCould there be a way to separate the assets from the controversial founder? Tune in to hear the teamâs perspectives on one of the wildest deals theyâve covered yet!
This episode is sponsored by Acquisition Lab, the accelerator helping aspiring business buyers with education, tools, and community support. Created by Walker Deibel, author of Buy Then Build, Acquisition Lab offers a vetted cohort-based experience for people ready to navigate the complexities of acquiring a business. Learn more at AcquisitionLab.com.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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Welcome back to another episode of Acquisitions Anonymous! This time, we dive into a fascinating online business for sale â a subscription-based eBook company in Tampa, Florida, with a claimed 35% net margin. The kicker? The owners say they only put in about an hour a week! đ˛
We're joined by special guest Kameron, a senior from the University of South Carolina, for fresh insights on evaluating deals as a young entrepreneur. Together, we discuss red flags, the subscription model, customer acquisition costs, and some eye-raising conversion rates. Could this business be a gold mine or a risky venture with hidden catches?
đ Whatâs Inside:
- Deal Overview: $1.5M asking price, $400K in cash flow
- Business model pros & cons
- Customer retention & acquisition analysis
- Kameronâs perspective on young entrepreneurship and the appeal of online businesses
- And⌠why we have our doubts about the â1-hour workweekâ claim!
Stay tuned to hear if we think this eBook venture is worth the investment or just another too-good-to-be-true pitch. Special thanks to Acquisition Lab for supporting todayâs episode!
đ Interested in Acquiring a Business? đ
Our sponsor, Acquisition Lab, provides a proven framework, tools, and community to help you go from business search to close with confidence. Founded by Walker Deibel, author of Buy Then Build, Acquisition Lab offers a vetted program for serious buyers. Check them out at acquisitionlab.com or contact Program Director Chelsea Wood at [email protected].Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, Mills and Heather dive into the intriguing world of a $3.2 million e-commerce business focused on drinking games. This business, operating primarily on Shopify and leveraging a massive TikTok following of over 800,000, is cash-flow positive and offers a high profit margin. The episode explores potential risks, growth opportunities, and the ideal buyer profile for such a niche business.
Key Points:
Business Model: This is a direct-to-consumer brand with products sold primarily through Shopify, Amazon FBA, Walmart, and TikTok.Financials: Generating $3.2 million in annual revenue with a $1.2 million profit, the business boasts a solid 40% profit margin.Challenges: Concerns about single-product dependency, TikTok-driven customer acquisition, and potential lack of repeat purchases pose risks.Buyer Suitability: The ideal buyer is likely a creative entrepreneur experienced in e-commerce or social media-driven businesses, or another e-commerce brand looking to expand into drinking games.Why You Should Listen: This episode provides valuable insights into assessing niche e-commerce businesses, understanding the risks of a trend-based product, and tips on evaluating acquisition targets with heavy social media reliance.
Sponsors:
Acquisition Lab: An accelerator designed for aspiring business buyers. Created by Walker Deibel, author of Buy Then Build, Acquisition Lab offers a cohort-based program with a proven framework, tools, and resources that guide buyers from search to close. To learn more, visit AcquisitionLab.com or email Chelsea Wood at [email protected] Business Capital: Specializing in SBA loan solutions for business acquisitions, Viso Business Capital helps secure the best loan structure to fit each buyerâs needs, focusing on speed, low friction, and access to over 30 different lenders. For a free Q&A on SBA loans, visit VisoCap.net.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, co-hosts Mills Snell and Heather Endresen take a deep dive into an intriguing real estate development opportunityâan exotic car storage facility near the Homestead-Miami Speedway in Florida. From analyzing the projectâs $16 million price tag to debating the pros and cons of buying a partially constructed property, this episode covers the ins and outs of this unique opportunity.
Mills and Heather discuss the broader real estate market in Florida, share insights about repurposing properties for high-end storage, and ask the million-dollar question: Why is this development up for sale before it's even completed? Plus, they tackle key concerns about cash flow, market demand, and potential pitfalls.
If youâve ever wondered about the intersection of luxury cars, real estate development, and high-stakes investing, this episode is for you. Stick around until the end for valuable tips on navigating deals like these and a quick shoutout to our sponsor, Acquisition Lab.
CTA: Learn more about buying businesses with our partner, Acquisition Lab: www.acquisitionlab.com
Get your tickets to HoldCo Conference 2025: www.holdcoconference.comSubscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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This episode of Acquisitions Anonymous features a rerun of one of the podcastâs most interesting interviews with The Wolf of Franchises. The hosts explore common misconceptions about franchising, shedding light on the intricacies of franchise ownership, investment, and growth.
Episode Highlight:
The Wolf of Franchises discusses the benefits and challenges of owning franchises, emphasizing how this can be a lucrative path for those not interested in starting from scratch.Key takeaways include how large multi-unit franchise owners scale their businesses and live off cash flow or profits from sales.Key Points:
Who is the Guest?The Wolf of Franchises is a well-known Twitter personality and expert in the franchising space. With seven years of experience in the industry, he worked for a multi-unit owner group and then transitioned to a franchise investment firm.Main Topic - Franchising as a Business Model:Franchising offers an entry point for those interested in business ownership without building a company from the ground up.There's transparency in franchise financials, thanks to disclosure documents, but the industry is often misunderstood.Challenges and Misconceptions:Not all franchises are equally profitable; there's a distinction between the top-performing ones (e.g., McDonald's, Orange Theory) and lower-tier brands (e.g., Subway, Curves).The scalability of franchises offers opportunities for those interested in owning multiple locations, but there are risks involved, including potential long payback periods for mediocre brands.Franchising Success Tips:Due diligence is essential when selecting a franchise. There are over 3,000 brands, but only a small percentage are highly profitable.Multi-unit ownership is often the key to generating life-changing income. Starting with one franchise and scaling over time is a proven strategy.Why You Should Listen:This episode is packed with insights for aspiring entrepreneurs or investors curious about the franchise model. Whether you're considering opening a franchise or investing in one, the episode offers valuable advice on how to assess potential opportunities and avoid pitfalls.
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In todayâs episode of Acquisitions Anonymous, hosts Michael Girdley and Heather Endresen analyze a unique niche businessâa high-margin sneeze guard manufacturing company based in California. With an asking price of $1.25 million and an impressive 66% margin, this company specializes in sneeze guards and shower doors, with customers across all 50 states. The hosts break down the numbers, explore the e-commerce-driven business model, and examine the challenges of operating out of high-cost real estate. Tune in to find out if this sneeze guard business is worth the price or just a niche oddity.
Key Points Discussed:
1. Business Overview â A sneeze guard manufacturing company with $750,000 in gross revenue and $500,000 EBITDA.
2. High Margins, Low Sales â The puzzling combination of high margins and relatively low sales volume.
3. Growth Potential â How online sales and proprietary software could fuel future growth.
Real Estate Dilemma â The complications of operating in an expensive California market with low rental income.
4. Niche Market Analysis â How COVID-19 impacted the sneeze guard business and whether it's a sustainable investment.
Sponsor: Acquisition Lab
If youâre serious about buying a business, check out the Acquisition Lab. Itâs the leading community for searchers seeking to buy small businesses. Gain access to tools, resources, and a community of fellow searchers to help you through your journey. Whether youâre a first-time buyer or an experienced entrepreneur, the Acquisition Lab can help. Visit Acquisition Lab to learn more.Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill DâAlessandro, Heather Endresen, and Mills Snell discuss a unique business: a premier manufacturer of wooden roof and floor trusses. With over $5 million in EBITDA and $11 million in annual revenue, the group dives into the pros and cons of this construction product business located in the southeastern U.S. They explore the implications of the companyâs geographic location, customer concentration, and reliance on the construction market. Plus, Mills shares insights from a similar business acquisition and how it relates to this deal.
Key Points Discussed:
- Geographically Moated Business: How location plays a significant role in the success of this truss manufacturing company.
- Customer Concentration: The risks and opportunities of working with building supply companies and contractors.
- Cyclical Industry: What happens to businesses like this one during economic downturns in the construction sector.
- Trusting the Trusses: The importance of high-quality, engineered trusses in modern construction and why they are in demand.
Thanks to this weekâs sponsor:
Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at [email protected] and mention us ;)Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill DâAlessandro, Heather Endresen, and Mills Snell dive into the sale of a sleep disorder and attention deficit disorder medical practice based in Detroit, Michigan. With an asking price of $5 million and a net cash flow of $1.8 million, the team discusses the complexities of owning a medical practice, the revenue potential from sleep apnea treatments, and whether an owner needs to be a licensed physician. They explore the practiceâs payer mix, potential technological disruptions, and whether owning the CPAP distribution side of the business is key to profitability.
Key Points Discussed:
- Payer Mix and Margins: How the mix of private insurance, Medicare, and Medicaid impacts the clinicâs value.
- Physician Ownership: Whether a non-physician can own this practice through an MSO (Medical Service Organization).
- CPAP Business Model: Understanding whether the clinic profits from the sales and maintenance of CPAP machines.
- Market Trends: The increasing prevalence of sleep disorders and the residual income potential from repeat visits and equipment servicing.
Thanks to this weekâs sponsor:
Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at [email protected] and mention us ;)Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill DâAlessandro, Heather Endresen, and Mills Snell evaluate a nationwide refrigerated and dry freight trucking company with $4.7 million in EBITDA. The discussion touches on the challenges of owning a trucking business in a volatile freight industry, the risks associated with owning 35 trucks, and the pros and cons of doubling fleet size to 60 trucks. They also explore the cyclical nature of the trucking industry and whether selling trucks and focusing on freight booking could increase profitability.
Key Points Discussed:
⢠Asset-Heavy vs. Asset-Light: The risks of owning trucks and the benefits of shifting to a more asset-light model.
⢠Cyclical Industry Risks: The impact of the freight marketâs cyclicality and how businesses handle booms and busts.
⢠Growth Through Expansion: Why expanding the fleet might not be the best strategy in a saturated market.
⢠Logistics and Dispatch: The role of 24/7 dispatch teams and owner-operators in managing the logistics nightmare of trucking.
Thanks to this weekâs sponsor:
Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at [email protected] and mention us ;)Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, hosts Michael Girdley and Heather Endresen evaluate a metal recycling business for sale in Pennsylvania. With $1.1 million in cash flow and $20 million in annual revenue, the conversation explores the businessâs asset value, including $2 million in inventory and $2.5 million in equipment. Heather and Michael also dig into key factors like the potential impact of commodity price fluctuations, the importance of owning the real estate, and the environmental concerns tied to the businessâs location.
Key Points Discussed:
- Inventory & Pricing Risk: The challenge of managing $2 million in inventory and how commodity pricing impacts profitability.
- Environmental Concerns: Why itâs critical to understand the environmental state of a property in a recycling business.
- Location Dependence: The importance of owning real estate in a business heavily tied to its physical location.
- Low Margins: How operating at a 5% net margin presents risk and the challenges of maintaining profitability in a low-margin industry.
âď¸ Subscribe to our Newsletter and get more deals like this every week**: https://www.acquanon.com/newsletter
đ§ Listen to our full episodes on your favorite podcast platforms**: https://www.acquanon.com/episodes
Thanks to this weekâs sponsor:
Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at [email protected] and mention us ;)Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode of Acquisitions Anonymous, hosts Bill DâAlessandro and Michael Girdley dive into a unique opportunity: a youth residential treatment facility with a $750,000 cash flow, up for sale at $5.5 million. The conversation explores key challenges, including recruitment difficulties and staff-to-youth ratios that impact the facilityâs ability to operate at full capacity. They discuss whether the rural Utah location enhances the value due to outdoor programs or limits it due to labor shortages.
Key Points Discussed:
- Staffing Challenges: How recruitment issues affect profitability and capacity in residential treatment centers.
- Real Estate Considerations: Whether the $2.7 million in real estate valuation is justified and how owning the property factors into the deal.
- Mission-Driven Work: The pros and cons of running a business that changes lives but can be emotionally taxing.
- Baumolâs Cost Disease: A deeper dive into how rising wages in one sector affect staffing costs in others.
âď¸ Subscribe to our Newsletter and get more deals like this every week**: https://www.acquanon.com/newsletter
đ§ Listen to our full episodes on your favorite podcast platforms**: https://www.acquanon.com/episodes
Thanks to this weekâs sponsor:
Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at [email protected] and mention us ;)Subscribe to weekly our Newsletter and get curated deals in your inbox
Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
Advertise with us by clicking hereFor inquiries or suggestions, email us at [email protected]
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In this episode, we reviewed a $4.5M plumbing and HVAC business with a strong focus on repair and replacement services in the Northeast US. With 1.4M EBITDA and 2,500 active accounts, it has a balanced revenue stream, recurring income, and no exposure to new construction. The big question is whether the impressive 33% margins are sustainable as the business scales.
Thanks to this week's sponsor:
Acquisition Lab and their team have been longtime supporters of the pod.
Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood, [email protected] and mention us ;)
Business At A Glance
Revenue: $4.5M (2023)
EBITDA: $1.4M
Customer Base: 2,500 active accounts
Location: Northeast US
Revenue Mix: 60% plumbing, 40% HVAC
Team: 23 employees
Focus: Repair & replacement only
What We Thought
Customer Base Questions
John raised concerns about the definition of "active" accounts. If the 2,500 accounts are truly recent, it's impressive. Otherwise, it could indicate a weaker client base than advertised.
Multi-Trade Challenges
At $4M, managing both plumbing and HVAC might hurt focus. John thinks focusing on one service would improve margins.
Northeast Market Strength
The business benefits from higher ticket prices in the region due to hydronic heating systems, but unionization could pose a challenge depending on location.Subscribe to weekly our Newsletter and get curated deals in your inbox
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We found an interesting deal in episode 332âa theatrical supply and construction company based in Wisconsin thatâs been around since 1981. Itâs a niche player in stage setup and lighting for venues like theaters, casinos, and schools. The company is projected to hit $28M in revenue for 2024 with $1.3M in EBITDA. The two brothers running it are looking to exit, though one may stay on for a transition.
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Business Type: Theatrical supply and constructionLocation: WisconsinRevenue: $28M (2024 projected)EBITDA: $1.3M (2024 projected)Employees: 74Established: 1981Customer Base: Theaters, casinos, schools, TV studios, and theme parksOwners: Two brothers, one ready to fully retireWhat We Thought:
Red Flags
Inconsistent EBITDA over the yearsâespecially the 2020 peak during COVID.Margins are razor thin for a business with $28M revenue.Large employee headcount could be a drag on profitability.Owners possibly running personal expenses through the business.Inventory management could be difficult with old or obsolete equipment.Green Flags
Strong, diversified customer base, from casinos to schools and theme parks.The business is rebounding after COVID, with steady revenue projections.Potential for growth with AV companies needing high-end lighting and rigging.One owner is open to staying on for a smooth transition.The Verdict
Michael likes the business and thinks itâs the right type of specialty contracting company, but thereâs likely something odd under the hood. The inconsistencies in EBITDA and odd financial behavior raise red flags. Heather gives it a thumbs down, particularly from a lender's perspective, as the unpredictable margins and unclear financials would make financing a nightmare.
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Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
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- Visa fler
