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

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Weekly Zeitgeist 337 (Best of 9/2/24-9/6/24)