Acquisitions Anonymous - #1 for business buying, selling and operating

We found an interesting deal in episode 332—a theatrical supply and construction company based in Wisconsin that’s been around since 1981. It’s 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.

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 ;) 

At A Glance

• Business Type: Theatrical supply and construction
• Location: Wisconsin
• Revenue: $28M (2024 projected)
• EBITDA: $1.3M (2024 projected)
• Employees: 74
• Established: 1981
• Customer Base: Theaters, casinos, schools, TV studios, and theme parks
• Owners: Two brothers, one ready to fully retire

What We Thought:

Red Flags

• Inconsistent EBITDA over the years—especially 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 it’s the right type of specialty contracting company, but there’s 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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In this week's episode of Acquisitions Anonymous, we’re looking at a content-based business listed on Quiet Light—a recipe site with six years of future content ready to go, pulling in over 50 million page views in the past year. Joining us today is Chelsea Wood from Acquisition Lab, who shares her expertise on the potential of this business. 

What We Thought:

Strong Metrics but Lacks Clarity on Revenue Sources

Heather pointed out the lack of clarity about how the business earns its revenue. Is it primarily through ads, affiliate marketing, or a mix of both? Since the website is recipe-focused, it’s unclear if it relies on affiliate marketing tied to ingredients or if it’s purely ad-driven. This information would significantly influence how sustainable its income is, especially in a competitive content market.

Why Sell Now?

Chelsea voiced an unusual concern—why is the owner selling if the business is so profitable? With six years of content ready and such high margins, the site could continue to generate strong earnings without much effort. The skepticism here lies in whether there’s something beneath the surface that’s motivating the sale.

Chelsea was also wary of the asking price. A nearly 5x multiple is steep for a content-based business, especially in an environment where many such businesses are struggling. That said, the evergreen nature of recipes makes it a little more reliable than other types of content, like travel blogs.

Red Flags

• Unclear Revenue Streams: We don’t have a solid breakdown of where the revenue comes from, which is crucial for evaluating long-term viability.
• Potential Personality Reliance: If the founder's identity is tied to the brand, there could be a drop in engagement after the transition.
• High Asking Multiple: At 4.91x, the multiple feels high, particularly given that content-based businesses are generally valued lower.
• Why Sell Now? The timing of the sale is suspicious, considering the potential for continued earnings.

Green Flags

• Strong Engagement Metrics: 50M page views, a 44% email open rate, and massive social media following all point to a loyal audience.
• Evergreen Content: Recipes don’t go out of style, giving the site a steady, long-term value proposition.
• Six Years of Content: With 2,000 recipes ready to publish, a new owner has a major asset in pre-produced content.
• Owner’s Low Time Commitment: The current owner only works 4-5 hours per week, making it a semi-passive income opportunity.

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In today’s episode of Acquisitions Anonymous, we take a deep dive into a unique business—a 100-year-old salad manufacturing company in Los Angeles County. Hosts Michael Girdley, Bill D'Alessandro, Mills Snell, Heather Endresen, and special guest Chelsea Wood from Acquisition Lab discuss the ins and outs of this $4.6 million deal. From potato salads to military contracts, this business has strong growth potential, but with a few possible red flags. The team explores potential buyer profiles, operational challenges, and whether this company is ready for a modern makeover.

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 ;) 

Key Points Discussed:

1. The Business Breakdown – Overview of the salad manufacturing company's performance, including its product mix and client base.

2. Growth Opportunities – How the business has grown from $6 million to $10.5 million in sales in four years and what potential lies ahead.

3. Operational Concerns – Challenges with scaling, customer concentration, and the company’s long-standing history.

4. The Real Estate Factor – How LA real estate could impact the business's profitability and future growth.

5. Diversification & Expansion – The possibilities of expanding the product line to healthier or more modern offerings.

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In this episode of Acquisitions Anonymous, hosts Bill D’Alessandro and Heather Endresen evaluate a private jet charter business with a $2 million EBITDA. They explore whether the company operates on an asset-light model by leasing jets or owns the aircraft, and how each model affects profitability. The discussion covers key aspects of FAA Part 135 certification, maintenance, and the growing demand for private jet services. With insights into corporate, government, and individual clientele, Bill and Heather dive deep into the complexities of the private aviation industry, including Bill's fascinating story about the origins of EBITDA.

Thanks to this week's sponsor:

CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.

Find out more at: https://cloudbookkeeping.com/

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For this episode we found a live lobster storage and seafood processing company in Nova Scotia that's up for sale. They are asking $8.9 million, and are making $55M in revenue, but it all comes with its own set of challenges. We chat about what it takes to succeed in this niche industry, and why this might be a dream deal for the right buyer (or a nightmare for others). If you're curious about the seafood business or just love interesting deals, tune in 

Thanks to this episode'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 ;)

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• 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.

For inquiries or suggestions, email us at [email protected]

In this episode, Bill and Heather talked about the key strategies for structuring an SBA loan for a seasonal eCommerce business. They also discussed the challenges of managing inventory and working capital and offered practical advice on how to approach lenders and structure your deal effectively. 

If you want to learn more about SBA Loan and Heather's work, visit her website Visocap.net 

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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.

For inquiries or suggestions, email us at [email protected]

Thinking about investing in a franchise but unsure if it’s worth it? In this episode, we analyze the pros and cons of franchise investments using a pet cremation business as our case study. We talked about what to consider before saying yes, like the importance of brand recognition, the support you can expect from the franchisor, and how to understand market demand in your area. 

Thanks to this episode's sponsor:

CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• 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.

For inquiries or suggestions, email us at [email protected]

In this episode, we look at a retail apparel business in the middle of Florida’s tourist hotspot, WaterSound. They’ve made the most of the busy Highway 30A traffic with three stores and an online shop. But is the $5 million asking price worth, especially with so few fixed assets? We talk about the pros and cons and whether this deal is a hidden gem or another tourist trap.

Thanks to this episode'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 ;)

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• 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.

For inquiries or suggestions, email us at [email protected]

Who should buy a data center business? In this episode, we check the details of this IT business making $14 million and who should be interested in buying it. We cover what makes it a good or bad fit for different buyers and why it might catch their eye. 

Thanks to this episode's sponsor:

CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• 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.

For inquiries or suggestions, email us at [email protected]

Today’s episode is one of our favorites. We checked this mobile accessories business that’s making $1.7M EBITDA. They sell phone cases and other cool stuff online, and they’re doing pretty well. But, as always, there’s more to the story. We’ll talk about the competition they’re up against and how much they depend on online sales to keep things going.

Listing: We found this one on Acquire.

Thanks to this episode'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 ;) 

Subscribe to our Newsletter

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• 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.

For inquiries or suggestions, email us at [email protected]