12 Aug Acquisitions Anonymous: Would You Pay $18M for a Metal Fab Biz That’s Only 5 Years Old?
This episode features a deep dive into a $4.5M cash-flowing metal fabrication business in Houston listed for $18M. Founded in 2020, the business boasts a 30% EBITDA margin, 17 employees, and owns a 30-acre facility with specialized bays and modern machinery. It serves the oil and energy sectors, with long-standing contractor relationships and the real estate optionally bundled in.
Key Highlights:
– Asking price: $18M with $4.5M in cash flow (3.8x multiple)
– Located in Harris County, TX (Houston); real estate optionally included
– 30% EBITDA margins; founded just 5 years ago in 2020
– New SBA rules may kill deals involving licensed businesses and rollover equity
– Potential red flags: add-on-only language, possible reliance on prior business relationships
