Codie SanchezFounder @ Contrarian Thinking

Three Businesses I’m Looking To Buy (Part 2)

17 Sept 2024 · 1 min

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1:00

Codie Sanchez reviews three live business listings she is considering on Biz Scout: (1) a biohazard services and restoration firm quoted at a 3.1x profit multiple claiming 51% cash flow (~$800k) with total revenue ~ $1.5M, noting potential padding and that certifications may be state-dependent; (2) a full-service accounting firm with recurring revenue (taxes and bookkeeping), listed at ~$900k, with Codie estimating actual cash flow closer to $250k and noting the business has operated since 1980 and seller financing is likely; (3) a laundromat (operating since 2014) with newer machines and a reported high cash-flow margin (~$250k) which Codie recommends negotiating down; she characterizes laundromats as low-cost, entry-level acquisitions.

Chapters

What are three real businesses I'm looking at buying right now? First one Biohazard services and restoration firms. Look at the multiple on here. 3.1x profit at 51% cash flow at 800k is great, but again at a 1.5 million total revenue we got to dig in a little deeper. I bet there's some fluff. This type of business is both recession resistant and also you don't need certifications. Check your state. The number two listing I like here is a full service accounting firm. Recurring revenue either annual for taxes or monthly for bookkeeping. You get to also add on more products and services. I think the cash flow is too high. I'm guessing this makes closer to 250k so we can dive in off the 900k total. It's small enough where seller financing is likely on the table. This thing's been around since 1980. Great sign. Last one laundromat. This laundromat has been around since 2014. Machines look new. Love Laundromats as an entry level business. Not very expensive. 250k cash flow margin's pretty high there so we're going to negotiate this down a little. Those are three live right now on Biz Scout that I think are worth taking a look at.