A $3mm profit a year water delivery business! - Acquisitions Anonymous episode 155

Want to receive this listing in your inbox? Signup for our weekly newsletter:https://www.getrevue.co/profile/acquanon-----Michael Girdley (@Girdley), and Mills Snell (@thegeneralmills) talk about a deal we liked: A Drinking Water Delivery Service based in Texas.We dig into how this business operates, potential challenges on the customer side, head & tail winds, and Location based risks.How do Power Law returns work for PE and our day-to-day? What are our thoughts on the Capital Expenditure budget for this company? Learn more about this deal as you listen to this episode.Company: Drinking Water Delivery ServiceLocation:TXStated Financials:$3M - SDE   |   $5M - FF&E   |   $6.5M Gross RevenueAsking Price:$18M-----Thanks to our sponsors!CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.-----Show Notes:(00:00) - Introduction(01:17) - Our Sponsor is CloudBookkeeping(02:44) - Catch up with Mike and Mills(03:52) - Deal & financials: TX Drinking Water Delivery Service - $3M SDE(07:02) - What does this company do?(08:26) - What is the customer base risk associated with this deal?(10:54) - How do we think about CapEx for this business?(13:32) - What is the catch with Oil Field companies?(15:32) - How do Power Law return work for PE and our day-to-day?(21:05) - What is the location risk associated with this deal?(22:58) - What’s so interesting about the cemetery business?(23:47) - We’re looking for $3 to $5M in SDE/EBITDA businesses, send ‘em over!(26:21) - How stable can this business be on a day-to-day basis?-----Additional episodes you might enjoy:#153 - Will Bill buy this company for Girdley’s Christmas present?#152 - Should we buy this Ambulance company?#151 - Should we buy this Pot Business Credit Card Processor?#150 - Let’s buy a medical staffing business#149 - Is this car spinner business a good side hustle?#148 - Growth Marketing explained: Shopify Superfood Greens Brand with 40% subscription rate w/ Baller Jesse PujjiSubscribe to  weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking hereDo you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.Do you enjoy our content? Rate our show!Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.For inquiries or suggestions, email us at [email protected]