$18M Metal Fabrication Business in Houston - what's the catch? (Acquisitions Anonymous)

Hi folks, Will here from the Acquisitions Anonymous team. Today's episode looked at a self-described "cash cow": a $4.5M cash-flowing metal fabrication business in Houston, Texas, going for $18M. It’s only been around since 2020 but boasts a whopping 30% EBITDA margin. Sounds like a dream, right? But is it too good to be true? This business operates in the heart of Harris County, serving the oil and energy sectors with specialized machinery and a 30-acre facility. Despite its impressive financials, the listing’s emphasis on being an "add-on" acquisition raises eyebrows. Are there hidden dependencies or risks? Takeaways - **High Margins:** A 30% EBITDA margin is enticing, but the business’s short history could mean it’s riding a wave of demand that might not last. - **Real Estate Unclear:** The real estate is included as an option, but is the EBITDA reflective of market rent if it’s not purchased? - **SBA Financing Issues:** Given the recent changes in SBA rules, could financing be a stumbling block? - **Cyclicality Concerns:** With its ties to the oil industry, how vulnerable is the business to market fluctuations? - **Due Diligence Required:** The price seems low for such a cash-rich business. What’s the real story? You can listen to the whole episode here: https://www.youtube.com/watch?v=cbWKgrzgnFg And check out the business listing direct: https://www.bizbuysell.com/business-opportunity/huge-cash-cow-metal-fabrication-business-w-strong-client-base/###-###-#### /