🆕Steel Business w/ Insane Numbers📈

Welcome Back!

As always, we're here to help you navigate the uncharted waters of buying a business. The process can be complicated, but that’s why we’re here! While others may use big words and make things confusing, we focus on keeping it simple. Simplify, simplify, simplify—that’s our mantra. If we're not doing a good job explaining these topics, head over to our Discord and let us know. We're dedicated to helping you on your journey to pivot away from corporate life and reclaim your time, just as our team is doing alongside you.

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕Status Update: I’m currently developing a due diligence checklist to compile all the valuable tips I’ve gathered from brokers and sellers throughout this process. This checklist aims to help you uncover the real reasons behind why people are selling and ensure that what you’re buying is truly what you’re getting. Unlike many generic lists you find online, this one will provide clear explanations and relatable analogies for first-timers like me. It will also include resource links to empower you to conduct your own thorough due diligence.

💡Boring Business In The Wild: Recently, a nearby car wash was taken over by a new owner who immediately introduced some impressive upgrades. This once self-serve-only car wash, which saw little business, has now transformed into a bustling semi-automated gold mine. They've introduced a monthly membership with four levels of wash, and the best upgrade by far—the drive-through tunnel. Every time I pass by, I can’t help but think, "Why didn't I do that?" Turning something ordinary into something extraordinary by automating and adding value—that’s the real game changer.

Tyler’s Perspective (Multiple Businesses Owned)

🚨Tip of the Week: Narrowing down leads can be difficult. Often times it can be beneficial to choose 3-5 industries (e.g., home services, financial services, food & beverage, etc.) to help sort through the leads. We have narrowed it down to roughly 2 industries that are tied to our experience and existing contacts. Both of these factors are crucial to the success of a new business owner and should be considered when you are reviewing businesses to acquire. 

💰 Deals < $500k

Business Name: O&G Training and Compliance Services Business
Revenue: $682,906
Asking Price: $500,000
Profit: $251,745 (Profit Multiple = 1.99)
Location: Harris County, Texas
Established: 2000

✅Pros

• Well-established brand: Over two decades of experience in the O&G measurement market.

• High client retention: Strong track record with more than 2000 trained professionals and SOPs for over 20 operators.

⚠️Cons

• Limited financing options: Buyers need cash due to the business being a division of a larger organization.

📈Growth Opportunities

• Owner-operator potential: Significant room for growth with focused attention and management.

• Synergistic opportunities: Potential for continued synergy with the parent company's software subsidiaries.

💰💰 Deals $500k - $2m

Business Name: Niche-Steel Fabrication Co.
Revenue: $3,721,458
Asking Price: $1,250,000
Profit: $1,195,139 (Seller's Discretionary Earnings)
Location: North Texas
Established: 1994

✅Pros

• Well-established: Over 35 years of industry presence and a solid reputation.

• Diverse capabilities: Ability to fabricate various metals and perform multiple services including wet painting and welding.

⚠️Cons

• Recent financial downturn: 2022 and 2023 numbers are significantly down, and the business is currently not profitable.

📈Growth Opportunities

• Market expansion: Significant potential for growth with marketing efforts, as the business currently relies on word of mouth.

• Industry demand: Positioned well to capitalize on the growing North Texas construction industry and the push for more distribution centers.

💰💰💰Deals $2m+

Business Name: Full Service Tree Removal, Maintenance
Revenue: $4,005,402
Asking Price: $4,900,000
Profit: $2,250,000 (Seller's Discretionary Earnings)
Location: Rhode Island
Established: Over 30 years

✅Pros

• Experienced staff: Fully trained, dedicated, and loyal employees.

• Established reputation: Over 30 years in business with a strong customer base and excellent service quality.

⚠️Cons

• Underutilized equipment: Potential for better utilization and increased efficiency under new ownership.

📈Growth Opportunities

• Service expansion: Opportunity to add additional services and increase operational hours.

• Geographic expansion: Potential to expand the service area to reach more customers.

The Lean Startup: Ch. 3 Part 1

Welcome back! You’ve made it through two whole chapters… and I bet if you can read you can count, so you know we are on Chapter 3! Over the next 2 weeks we will be diving into the chapter about LEARNING. 

Have you ever asked yourself as an entrepreneur (or an intraprenuer), whether or not you were bringing a product to market that anyone would actually want? You are not alone! We at Corporate Pivot have thought the same thing, and you know what, we are hopefully bringing value to our subscribers by providing insight for business to buy & these chapter walkthroughs! Providing value to your customers will lead you towards progressing into creating a successful business. 

To provide value you must…

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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