A 41-year brand. 35,000 installations. 75% net margins. One problem: those margins belong in a different industry entirely. We ran the numbers so you don't have to wonder.
The listing is for a Palm Beach County–based luxury retractable awning manufacturer and installer, founded in 1985. It operates out of a warehouse in Boynton Beach, serves an affluent residential base (think $800K–$1M median home values), and has racked up over 35,000 successful installations across South Florida.
The business runs lean: just 1 full-time employee and a subcontracted installation crew. The seller is retiring after four decades and is willing to finance up to 50% — which is either a sign of confidence in the business, or a sign they'd rather get paid over time than find out what a buyer's lender thinks. Probably both.
Strong brand and solid DSCR are real. The 75% net margin and 100% gross margin are not — at least not for a business classified in construction. The score reflects an opportunity worth investigating, not one worth rushing into at the asking price.
A 3.2 out of 10 sounds harsh for a business that's been running profitably for four decades. It's not a verdict on the business itself — it's a verdict on the deal as currently structured. There's a meaningful difference.
The AI score weighs the asking price against verified comps, flags anomalous margins, and models what a realistic post-close income looks like. When a construction business reports 100% gross margins and 75% net margins, it's not getting ignored. Those numbers mean something went into the calculator that doesn't match standard industry cost structures — and any buyer needs to find out what before signing anything.
Here's what was submitted into the OwnABiz analyzer. Read it carefully — especially the zeros.
| Line Item | Amount | Margin |
|---|---|---|
| Net Revenue | $933,626 | 100% |
| Total COGS | $0 | — |
| Gross Profit | $933,626 | 100.0% |
| Total Operating Expenses | $0 | — |
| EBIT | $933,626 | 100% |
| EBITDA | $357,287 | 38.3% |
| Net Income | $700,220 | 75.0% |
Zero COGS. Zero operating expenses. For a business that manufactures, assembles, and installs German-engineered awnings with proprietary aluminum bars and subcontracted labor. Either this is the most efficient awning company in human history, or the financials submitted represent owner's cash flow figures rather than a proper income statement — a common (and maddening) presentation quirk in small business listings. This is the first conversation to have with the broker.
At $1,299,000 against SDE of $357,287, the seller is asking for a 3.64× SDE multiple. The construction industry typically trades at 2–3× SDE. You're paying a 21–82% premium over where this deal should land.
At a fair 2.5× SDE multiple, this business is worth roughly $893,000. The asking price of $1,299,000 represents an estimated $300,000–$450,000 premium over market comps. The seller's 41-year brand has real value — but $300–450K worth? That's negotiating room, not a dealbreaker.
| Multiple | SDE-Based Value | vs. Asking Price |
|---|---|---|
| 2.0× (Low) | $714,574 | −$584,426 |
| 2.5× (Midpoint) | $893,218 | −$405,782 |
| 3.0× (Upper Range) | $1,071,861 | −$227,139 |
| 3.64× (Asking) | $1,299,000 | Asking Price |
Here's the part that keeps this deal from being a flat-out pass. Even at the full asking price with a 10% down payment, the math on debt service is legitimate.
A 119% cash-on-cash ROI and a sub-one-year payback period on a $134K down payment is genuinely eye-catching. If the earnings are real. That caveat does a lot of heavy lifting in this analysis.
"The cash flow math is compelling. The margin math is alarming. Those two facts can coexist — but only one of them is definitely real."
35,000+ installs is not marketing copy — it's a moat. In the luxury residential market, reputation compounds. This business has survived four decades of Florida weather and economic cycles. That's real.
Comfortably clears the SBA's 1.25× minimum. Even under financing, the business throws off $160K annually to the owner. That's a livable income on day one — if the numbers are accurate.
Households with $800K–$1M+ home values don't price-shop awnings. High average ticket, repeat referrals, and low price sensitivity is a margin-protective combination in any economy.
50% seller carry signals the owner has skin in the game post-close. It also gives a buyer negotiating leverage on price — if the seller wants their note paid, they need you to succeed.
Industry comps benchmark at 2–3×. You're being asked to pay a brand premium of roughly $300–450K. That's a negotiation, not a dealbreaker — but only if you make it one.
No cost of goods in a manufacturing and installation business is a five-alarm flag. Due diligence needs to reconstruct the full income statement from tax returns and bank statements before any offer.
Two employees, 41 years under one owner's watch. The relationship network, tribal product knowledge, and customer relationships likely walk out the door at retirement. How much of that $357K SDE is the owner's personal goodwill?
Construction businesses run 3–7% net. This listing reports 75%. Either something extraordinary is happening, or the expense side of the ledger hasn't made it into the presentation yet.
After debt service, taxes, and the QBI deduction — here's what the calculator estimates you'd take home if the reported SDE holds post-close.
| Line Item | Amount |
|---|---|
| SDE | $357,287 |
| Less: Annual Debt Service | ($196,590) |
| = Owner Cash Flow | $160,697 |
| Less: QBI Deduction (20%) | ($32,140) |
| = Taxable Owner Income | $128,558 |
| Less: Est. Personal Tax (30%) | ($38,567) |
| Estimated Annual Take-Home | $122,130 |
| Monthly Take-Home | $10,178 |
$10,178/month is a solid income for running what amounts to a two-person operation. But remember: that figure assumes the reported $357K SDE is real and survives the ownership transition. If normalized earnings are closer to $200–250K — which they might be once actual COGS and labor get added back in — the take-home picture looks materially different.
This is not a bad business. It's a potentially overpriced listing with genuinely suspicious financial presentation — and those are very different problems. A 41-year brand with 35,000 installations in an affluent market, seller financing on the table, and a DSCR that clears 1.82× is worth pursuing with the right number on the contract.
The opening ask is $1,299,000. The math says this business belongs somewhere in the $850,000–$1,050,000 range, depending on what full due diligence reveals about COGS, labor costs, and how much of the revenue is truly transferable without the current owner's personal relationships driving it. There's a deal here. It's just not at the asking price.
Before you sign an NDA, request three years of tax returns, bank statements, and a proper P&L with COGS broken out. If the seller won't provide them, that tells you everything you need to know. If they do, run those real numbers through OwnABiz and see what the score looks like with accurate data.
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