🆕 Kitchen Exhaust Cleaning... Makes Bank?!

Welcome Back! 

Today we have a great one for you. One of them even has more cash flow than its asking price 👀. Also, we have some free learnings that were just published. You heard that right, FREE! Show me someone who doesn’t like free stuff and I’ll show you a crazy person. We’ve created a course called “The Business Buying Overview” and are putting it up for free on the website. Read below for more details on where to go for it.

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

📈Update of the week: This week I went ahead and created the first course for The Corporate Pivot. It’s aimed at teaching why buying a business is more than just an idea, but something you should seriously consider. It’s not sugar coated to say it’s easy, but instead straight to the  point listing both the upsides and potential risks. Did I mention that it’s also completely FREE? Go check it out here at corppivot.com!

More to come on classes to help everyone learn the process, but to get started it’s important at to focus on the WHY. One you know that, you’ll be unstoppable. 

Tyler’s Perspective (Multiple Businesses Owned)

🚨 As I talked about in our last newsletter, my pool business is looking to expand. The beauty of owning a service business is that there are multiple ways to expand. Aside from growing your routes, often times you can grow through acquiring real estate (a “home-base” for operations) or acquiring other services and products that you use in your business (e.g., acquiring a pool supply business). We are currently looking to do both and hope we have more to report back soon!

💰 Deals < $500k

Business Name: Commercial Kitchen Exhaust System Cleaning Company
Revenue: $2,020,000
Asking Price: $405,000
Profit: $510,075 (Profit Multiple = 0.79)
Location: Cincinnati, Ohio
Established: 2009

✅Pros

• Recession Proof: Stable income due to legal mandates requiring regular cleaning services.

• Multiple Income Streams: Includes preventative maintenance and fire prevention solutions.

⚠️Cons

• High Dependency on Compliance: Business relies heavily on legal requirements for services.

📈Growth Opportunities

• Market Expansion: Potential to extend services to neighboring cities and states.

• Additional Services: Opportunity to introduce new related services, increasing revenue streams.

💰💰 Deals $500k - $2m

Business Name: Industrial Equipment Supplier with a 38 Year History
Revenue: $1,156,823
Asking Price: $1,000,000
Profit: $301,923 (Profit Multiple = 3.31)
Location: Minnesota
Established: 1986

✅Pros

• Impeccable Industry Reputation: Known for quality and reliability in the industrial equipment supply industry.

• Steady Growth: Revenue increased by 59% and cash flow by 191% between 2020 and 2023.

⚠️Cons

• High Dependency on Sales Engineers: Current growth relies heavily on the effectiveness and expansion of the sales team.

📈Growth Opportunities

• Hiring Additional Sales Engineers: Expanding the sales team can drive new customer growth and business expansion within current customers.

• Product Line Expansion: Introducing new products and services to existing clients can boost revenue.

💰💰💰Deals $2m-$10m

Business Name: Specialty Logistics for Hospitality Industry in Florida
Revenue: $4,273,402
Asking Price: $2,900,000
Profit: $1,051,366 (Profit Multiple = 2.76)
Location: Collier County, Florida
Established: 2011

✅Pros

• Preferred Vendor Status: Holds contracts with premium hospitality providers, ensuring steady and reliable revenue.

• Scalable Business Model: High potential for expansion across the state and country due to strong client demand.

⚠️Cons

• Owner’s Hesitation to Expand: The current owner’s desire to retire has limited growth opportunities.

📈Growth Opportunities

• Geographical Expansion: Clients are requesting service expansion to other regions, providing a clear path for growth.

• Diversified Revenue Streams: Potential to enhance income by offering additional services such as contracting, cleaning, and supplies.

The Lean Startup: Ch. 2 Part 1

Welcome back! and yes we are on Chapter 2 now. You’re getting so good at reading… I’m so proud of you <3. Look back to the previous few posts to get our rundown on Chapter 1 and remember to join our Discord channel to be a part of our chapter by chapter discussion!

Eric brings up an interesting observation…

Read more at corppivot.com!

Hope you enjoy this week's insights and happy deal hunting! Remember, if you find these updates helpful, share this newsletter with a friend!

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