Would You Pay $18M for a Metal Fab Biz That’s Only 5 Years Old?
Aug 12, 2025
The hosts dive into the intriguing case of a Houston-based metal fabrication business listed for a staggering $18 million. They explore its impressive $4.5 million EBITDA, boosted by its strategic positioning in the oil and energy sectors. The discussion also unpacks recent SBA loan rule changes that can impact acquisitions. Attention is given to the challenges of seller dependency and evaluating the viability of a relatively young business. Insights into market opportunities and operational strengths make for a captivating analysis for prospective buyers.
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volunteer_activism ADVICE
Rollover Equity Is Now Highly Constrained
Avoid relying on rollover equity for SBA loans because new rules make it impractical.
Expect seller personal guarantees and investor guarantees that will complicate deals.
volunteer_activism ADVICE
SBA Limits Seller Involvement To 12 Months
Don't expect sellers to remain involved past 12 months in SBA-financed deals.
For licensed businesses, plan to buy out sellers or arrange seller carry since SBA rules block long-term rehiring.
insights INSIGHT
Young Firm With Suspiciously Strong Financials
A five-year-old firm showing $4.5M cash flow and 30% margins raises questions about origin.
Rapid scale likely stems from prior relationships or significant upfront capital, not a typical organic ramp.
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In this episode, the hosts dissect a suspiciously high-margin $18M metal fabrication business in Houston and unpack the latest killer changes to SBA loan rules.
Business Listing – https://www.bizbuysell.com/business-opportunity/huge-cash-cow-metal-fabrication-business-w-strong-client-base/2382600/?utm_source=bizbuysell&utm_medium=emailsite&utm_campaign=shtmlbot&utm_content=button
Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them.
👥 This episode is sponsored by Capital Pad — the ultimate marketplace for acquisition entrepreneurs and small business investors. Looking to buy a business and need capital, or want to invest in deals with built-in governance and distribution structure? Go to https://www.capitalpad.com and tell them Acquanon sent you.
💼 Sponsored by Viso Business Capital — Get the right SBA loan tailored to your acquisition needs with Heather Endresen’s firm. Sign up for a free live Q&A on SBA loans at https://www.visocap.net and click “Zoom Sign Up” in the top-right corner.
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
Acquisitions Anonymous - #1 for business buying, selling and operating