This Fencing Business Claims The Owner Works 2 Hours A Weeksmart_display

This Florida fencing business is interesting because the listing is not just selling cash flow.

It is selling systems, real estate, growth capacity, and a claim that the owner only works around two hours per week.

That is exactly the kind of claim buyers need to verify carefully, because if it is true, the business becomes much more attractive. If it is exaggerated, the valuation starts looking much weaker.

Deal Snapshot

Now let's run the deal through a standard SBA financing scenario.

SBA Scenario (10% Down)

After debt payments, the buyer is left with roughly $202K per year. That is solid cash flow for a deal of this size.

What Stands Out

• Real estate included: The included property helps justify part of the premium valuation.
• Strong debt coverage: A DSCR of 2.54 gives the buyer a healthy financing cushion.
• Low reported owner involvement: The listing claims the owner works as little as two hours per week.
• Self-funding working capital: Customer deposits of 50% to 90% upfront reduce cash strain.
• Growth infrastructure: The business reportedly has infrastructure for three crews but currently operates only one.
• Strong market tailwinds: The listing points to population growth, new housing, and pool fencing demand.

Potential Risks

• Premium valuation: At 3.97x cash flow, the business is priced well above the industry benchmark.
• High revenue multiple: A 0.90x revenue multiple is meaningfully above the industry average of 0.50x.
• Owner involvement claim: The two-hour-per-week claim needs to be verified hard during diligence.
• Unexecuted growth: The seller says the business can support three crews, but only one is currently operating.
• Seller motivation question: If the business makes $340K, requires little time, and has major upside, why sell for other business opportunities?
• Execution risk: Adding crews sounds simple, but labor quality, scheduling, permits, and customer service can break quickly.

BizHub Verdict

BizHub scores this deal a 6.9 / 10.

There is a lot to like here. The business has real cash flow, included real estate, strong debt coverage, and a potentially very low-owner-time operating model.

The problem is valuation. The seller is asking almost 4x cash flow in an industry where similar businesses often trade for less.

The premium may be justified if the owner truly only works two hours per week and the business can be scaled from one crew to three.

But those are not assumptions I would accept blindly.

My biggest question is not whether this is a good business. It is whether the owner involvement and growth story are actually as clean as the listing makes them sound.

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