Acquiring Minds✓ Verified in SBA records

How To Buy A Seasonal Biz Buy Another For Low Season

with Andrew Harbin · Venango Awning

LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

Venango Awning

Industry

Awning sales, installation, and service

State

Purchase Price

$750K

Multiple (SDE)

3.0x

Year

2021

Revenue at Purchase

$1.0M

SDE at Purchase

$250K

Deal Source

bizbuysell

Strategic Rationale

Seeking a path to build wealth through acquisition and operational improvement, and subsequently acquiring a counter-cyclical fence franchise to address seasonal staffing challenges in the awning business.

Post-Acquisition Performance

Awning revenue grew from one million to 1.3 million in year one and 1.6 million in year two with 25-30% annual growth; fence franchise reached approximately 500K revenue run rate in first year despite rapid growth constraints.

Key Takeaways

1Buying a small business with growth potential allows rapid SDE expansion through operational improvements and marketing even without significant prior industry expertise.
2Seasonal businesses require creative solutions such as acquiring counter-cyclical ventures to retain trained staff and smooth cash flow rather than relying on temporary labor or customer shedding.
3Franchise acquisition can be a faster, less contentious path to entering a new industry compared to independent business purchase, offering access to supplier relationships, systems, and ongoing support in exchange for perpetual royalties.

Matched SBA Loan Records

SBA loan filings we matched to this deal

The Huntington National Bank95%

$1.9MP + 2.01%FY2011

The Huntington National Bank95%

$350KP + 2.01%FY2011

The Deal

Business

Venango Awning

Industry

Awning sales, installation, and service

State

Purchase Price

$750K

Multiple (SDE)

3.0x

Year

2021

Revenue at Purchase

$1.0M

SDE at Purchase

$250K

Deal Source

bizbuysell

Strategic Rationale

Post-Acquisition Performance

Key Takeaways

1Buying a small business with growth potential allows rapid SDE expansion through operational improvements and marketing even without significant prior industry expertise.

2Seasonal businesses require creative solutions such as acquiring counter-cyclical ventures to retain trained staff and smooth cash flow rather than relying on temporary labor or customer shedding.

3Franchise acquisition can be a faster, less contentious path to entering a new industry compared to independent business purchase, offering access to supplier relationships, systems, and ongoing support in exchange for perpetual royalties.