Deal Flow: Garage Door Retailer & Installer
Tap Into a Booming Industry with Strong Revenue, SBA Financing, and Growth Opportunities
Okay, imagine this: you’re looking for a business to buy, right? Not just any business, but one that taps into the world of home improvement—a sector that, let’s face it, isn’t going anywhere. Enter this garage door retailer and installer (what else would I find after listening about the $200m Garage biz roll-up!) in Suffolk County, NY. It’s like walking into a candy store, but the candy is cash flow. We're talking $720,000 in cash flow. That’s right—almost three-quarters of a million dollars in profit!
Now, I know what you’re thinking: “Is this for me?” Well, here's the kicker. Not only does this business have a solid customer base, but there’s a serious demand for its services. There’s also an SBA financing option available, meaning you can step into this business with a relatively low upfront investment. That’s like getting the keys to a house with a down payment so small, you might wonder if you’re dreaming.
But wait, there’s more! The business has room to grow, which is great news for you. You can crank up the marketing, hire more people (who doesn’t want more staff?), and even expand the service area. Picture this: a whole empire of garage doors stretching across New York. And then getting bought out by Guild.
Of course, don’t rush in just yet. The location is prime, the workforce is experienced, and the numbers look good. But—because there’s always a “but” in the world of business—you’ll need to pay careful attention to the lease terms and the competitive landscape. Are there other garage door guys lurking around? And what about inventory and staff continuity? You don’t want your new shiny business to fall apart because the supply chain is shaky or your employees are out the door.
So, if you’re the type who has a knack for growing things, managing operations, and can navigate the risks, this could be your golden ticket. You’ve got a solid business with plenty of potential, and the question now is: what’s your next move?
Let’s take a look at the listing:
Business Overview
Asking Price: $1,990,000
Cash Flow: $720,000
Gross Revenue: $3,847,990
EBITDA: N/A
FF&E (Furniture, Fixtures, and Equipment): $100,000 (included in the asking price)
Inventory: $150,000 (not included in the asking price)
Rent: $7,083.33 per month
Employees: 9
Established: 1969
Real Estate: Leased (9,000 sq. ft. showroom and warehouse)
Lease Expiration: 12/31/2024
Location: Suffolk County, NY (high-traffic street, easy customer access)
SBA Financing: Pre-approved for up to $1.9 million
Reason for Selling: Retirement (Yay!)
Support & Training: 3 weeks of training from the seller
Key Metrics & Valuation
Cash Flow to Asking Price Ratio: The business generates $720,000 in cash flow on an asking price of $1,990,000, giving a cash flow multiple of 2.8x. This is a relatively low multiple, and looks like the business is priced attractively for a profitable, long-established operation.
Revenue and Profitability: With $3,847,990 in gross revenue, the business generates a cash flow margin of approximately 18.7% ($720,000 cash flow ÷ $3,847,990 in revenue). This appears to be a healthy margin.
FF&E and Inventory: The $100,000 in FF&E includes essential equipment for operations, such as tools and machinery for installations, along with showroom displays. Inventory worth $150,000 is not included in the asking price.
Business Model and Operations
Product and Service Offering: The business specializes in the retail and installation of garage doors. It serves both residential and commercial clients, which provides diversification in its revenue streams. The company offers a variety of products, including custom-designed doors, standard models, and related services such as installation and repairs.
High Demand Market: The business operates in the home improvement industry, which has experienced strong demand, particularly due to more people working from home. Garage doors are essential for homes and businesses, and this demand is expected to remain steady, if not grow, particularly in suburban areas.
Location: The business operates from a 9,000 square foot leased facility located on a busily trafficked street in Suffolk County. This location is advantageous, as it provides good visibility and easy access for customers. The showroom, warehouse, and overhead garage door access make it an ideal setup for retail and installation services.
Experienced Staff: The business employs 9 staff members, and many of them have been with the company for over 10 years, indicating a strong, experienced workforce that should remain with the business after the sale. This continuity is a key asset for ensuring a smooth transition for the new owner.
Lease Terms: The current lease expires in December 2024, but the landlord is willing to provide a new lease to a qualified buyer.
Strengths
Established and Profitable Business: The business has been operating since 1969, with a strong reputation in the community and an established customer base. The business has shown resilience, rebounding strongly post-pandemic with growing sales and profits over the past two years.
Healthy Cash Flow and Profit Margins: With $720,000 in cash flow, the business is financially healthy and generates a strong return on revenue. This level of profitability is attractive, particularly those looking for a stable business with room for expansion.
SBA Financing: The business is SBA pre-approved, with financing of up to $1.9 million available to a qualified buyer.
Experienced Workforce: The business has a team of seasoned professionals with over 10 years of experience, which ensures continuity and operational stability post-sale. This is a critical asset, as it reduces the risk of disruption during the ownership transition.
High-Demand Industry: The home improvement industry continues to see strong demand, particularly for essential services like garage door installation and repairs. The business is well-positioned to continue benefiting from this trend.
Scalability and Growth Potential: The business has significant growth potential, including the ability to scale by expanding the workforce, increasing marketing efforts (e.g., SEO, SEM), or expanding into new markets or service offerings. The demand for garage doors in residential and commercial sectors is expected to continue, providing an opportunity to capture a larger market share.
Risks & Considerations
Lease Expiration: The business's current lease expires at the end of 2024, and while the landlord is willing to provide a new lease, you should carefully review the lease terms and negotiate for favorable terms, including rent increases, renewal options, and any potential changes in the space that could affect operations.
Competitive Market: While the garage door industry is in demand, there may be local competition from other installers and retailers. You’ll need to assess the competitive landscape and determine how to differentiate the business through superior customer service, marketing, or unique offerings.
Inventory Valuation: The inventory of $150,000 is not included in the asking price, so you’ll need to separately negotiate the value of the inventory. This inventory is a significant part of the business and should be thoroughly reviewed to make sure it is in good condition and aligned with current demand.
Dependency on the Seller: While the business has an experienced team, the seller’s involvement in the business should be clarified.
Management of Growth: As the business grows, you’ll need to manage the potential hiring of more staff, investment in marketing, and possible expansion into new markets or services. This growth will require strategic planning for continued operational efficiency and profitability.
MARKET OUTLOOK
Segment Breakdown:
Installation Services: The U.S. garage door installation segment was estimated at USD 458.4 million in 2024, showing a growth rate of 7.0% over the past five years.
(Source: IBISWorld)
Repair Services: The global garage door repair services market was valued at approximately USD 2.5 billion in 2023, with projections reaching around USD 4.2 billion by 2032, indicating a CAGR of 6.1%. (Source: DataIntelo)
What do you think? Check it out and let me know!
About: Silverwave Deal Flow combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed.
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