Most deals fall apart when you adjust the numbers. This one doesn’t—and that’s what makes it interesting.
This is a chimney sweeping and fireplace services business listed at $985,000, generating about $367,000 in cash flow on roughly $1 million in revenue.
The business has been operating for over 30 years and offers a mix of services including chimney sweeping, repairs, wood stove installs, and retail product sales. It also benefits from strong local reputation and repeat customers.
But there’s one important detail: the listing mentions rent of about $48,000 per year, which needs to be accounted for before trusting the numbers.
Deal Snapshot
Now let’s run the deal through a standard SBA financing scenario, including the rent adjustment.
SBA Scenario (Adjusted)
Even after adjusting for rent, the buyer is left with about $176K per year. That’s strong, especially for a sub-$1M deal.
What Stands Out
- High margins: Around 37%, well above industry averages.
- Strong post-debt income: Roughly $176K annually after financing.
- Excellent DSCR: About 2.2, providing real cushion.
- Fast payback: Down payment recovered in just over half a year.
- Long track record: Over 30 years in operation with strong reputation and referrals.
- Market position: One of the dominant providers in its regional area.
Potential Risks
- Real estate transition: Rent is favorable short-term but may increase after the first year.
- Owner transition: Business likely relies on relationships and expertise built over decades.
- Service mix complexity: Includes both service and retail components, which adds operational layers.
- Geographic concentration: Revenue tied to a defined regional market.
- Growth execution: Expansion opportunities exist but require active management.
BizHub Verdict
This deal scores a 7.5 / 10. Not because it’s perfect, but because even after correcting the assumptions, the numbers still hold up.
This is what you want to see. A deal that survives scrutiny instead of falling apart under it.
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