Why Stress Testing This Deal Actually Makes It Bettersmart_display

This is a chimney sweeping and fireplace services business listed at $985,000, generating about $367,000 in cash flow on roughly $1 million in revenue.

The business has been operating for over 30 years and offers a mix of services including chimney sweeping, repairs, wood stove installs, and retail product sales. It also benefits from strong local reputation and repeat customers.

But there’s one important detail: the listing mentions rent of about $48,000 per year, which needs to be accounted for before trusting the numbers.

Deal Snapshot

Now let’s run the deal through a standard SBA financing scenario, including the rent adjustment.

SBA Scenario (Adjusted)

Even after adjusting for rent, the buyer is left with about $176K per year. That’s strong, especially for a sub-$1M deal.

What Stands Out

• High margins: Around 37%, well above industry averages.
• Strong post-debt income: Roughly $176K annually after financing.
• Excellent DSCR: About 2.2, providing real cushion.
• Fast payback: Down payment recovered in just over half a year.
• Long track record: Over 30 years in operation with strong reputation and referrals.
• Market position: One of the dominant providers in its regional area.

Potential Risks

• Real estate transition: Rent is favorable short-term but may increase after the first year.
• Owner transition: Business likely relies on relationships and expertise built over decades.
• Service mix complexity: Includes both service and retail components, which adds operational layers.
• Geographic concentration: Revenue tied to a defined regional market.
• Growth execution: Expansion opportunities exist but require active management.

BizHub Verdict

This deal scores a 7.5 / 10. Not because it’s perfect, but because even after correcting the assumptions, the numbers still hold up.

This is what you want to see. A deal that survives scrutiny instead of falling apart under it.

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Want to see the original listing? View it here →