How This Sneeze Guard Business Earns 66% Margins

October 11, 2024
32
 MIN
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How This Sneeze Guard Business Earns 66% Margins
October 11, 2024
32
 MIN

How This Sneeze Guard Business Earns 66% Margins

In today’s episode of Acquisitions Anonymous, hosts Michael Girdley and Heather Endresen analyze a unique niche business—a high-margin sneeze guard manufacturing company based in California.

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In today’s episode of Acquisitions Anonymous, hosts Michael Girdley and Heather Endresen analyze a unique niche business—a high-margin sneeze guard manufacturing company based in California. With an asking price of $1.25 million and an impressive 66% margin, this company specializes in sneeze guards and shower doors, with customers across all 50 states. The hosts break down the numbers, explore the e-commerce-driven business model, and examine the challenges of operating out of high-cost real estate. Tune in to find out if this sneeze guard business is worth the price or just a niche oddity.

Key Points Discussed:

1. Business Overview – A sneeze guard manufacturing company with $750,000 in gross revenue and $500,000 EBITDA.

2. High Margins, Low Sales – The puzzling combination of high margins and relatively low sales volume.

3. Growth Potential – How online sales and proprietary software could fuel future growth.
Real Estate Dilemma – The complications of operating in an expensive California market with low rental income.

4. Niche Market Analysis – How COVID-19 impacted the sneeze guard business and whether it's a sustainable investment.

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Episode Transcript