In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill D’Alessandro, Heather Endresen, and Mills Snell discuss a unique business: a premier manufacturer of wooden roof and floor trusses. With over $5 million in EBITDA and $11 million in annual revenue, the group dives into the pros and cons of this construction product business located in the southeastern U.S. They explore the implications of the company’s geographic location, customer concentration, and reliance on the construction market. Plus, Mills shares insights from a similar business acquisition and how it relates to this deal.
Key Points Discussed:
- Geographically Moated Business: How location plays a significant role in the success of this truss manufacturing company.
- Customer Concentration: The risks and opportunities of working with building supply companies and contractors.
- Cyclical Industry: What happens to businesses like this one during economic downturns in the construction sector.
- Trusting the Trusses: The importance of high-quality, engineered trusses in modern construction and why they are in demand.
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