This Firewood Business Makes $375K... But Would You Buy It?

In this episode the hosts talk about a $1.2M Texas firewood delivery business that turns arborists’ unwanted logs into revenue with potentially near-free raw materials—but extreme seasonality, questionable inventory accounting, and financing challenges make the deal structure everything. Business Listing – https://www.bizbuysell.com/business-opportunity/profitable-35-year-old-firewood-business-dfw-texas-region/2485893/ Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them. Looking to build a professional website in minutes? Try Wix: https://wix.pxf.io/c/6898629/3115214/25616?trafcat=template HubSpot is the backbone for how businesses scale without chaos. Try them out here: https://go.try-hubspot.com/OeG9Vr Subscribe for more episodes: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1 Subscribe to our Newsletter: https://www.acquanon.com/newsletter What if the raw material for your business was basically free? In this episode of Acquisitions Anonymous, the crew breaks down a long-established firewood business serving the Dallas–Fort Worth, Texas market. The listing shows approximately $1.25M in revenue, $375K–$376K in seller discretionary earnings/cash flow, and a $1.2M asking price—roughly 3.2x earnings. The deal also includes a stated $80K of inventory and $315K of furniture, fixtures, and equipment, with seller financing potentially available. The fascinating part is the supply chain: arborists and tree-service companies may actually want somewhere to dump unwanted logs, potentially giving the firewood operator its core raw material for little or no cost. But free wood doesn't mean free profits. The business still has to process, split, season, store, move, and deliver a heavy product, while managing significant seasonality. The hosts also question how accurately the $80K of inventory is being measured, what condition that inventory is in, whether the business uses kiln drying, and how much value really exists in its customer and supplier relationships. The biggest debate is whether this is actually worth buying—or whether a landscaping or tree-service company should simply build the operation itself. The hosts discuss the financing difficulties of acquiring a highly seasonal business and explore creative seller-financing structures, including profit-sharing arrangements that could shift some of the seasonal risk back to the seller. Will McCurdy of Bedrock Quality of Earnings also joins the discussion to give an accounting perspective on inventory, cash flow, seasonality, and the financial diligence a buyer would need before closing. Sponsors: Quiet Light Brokerage specializes in helping entrepreneurs buy and sell businesses with experienced operators as brokers. They offer a free valuation clarity call to help owners understand what their business is worth and how to increase its value before selling. Learn more at https://quietlight.com/ Bedrock Quality of Earnings — Buying a business without verifying the financials can lead to expensive surprises. Bedrock Quality of Earnings combines experienced Big Four leadership, operator-backed expertise, and AI-powered analysis to help buyers validate earnings before closing. Learn more at https://girdley.com/bedrock. Key Highlights: - $1.2M asking price: Approximately $1.25M in revenue and $375K–$376K in seller discretionary earnings/cash flow, putting the asking price at roughly 3.2x. - Potentially free raw materials: Arborists and tree-service companies need somewhere to dispose of logs, creating a potentially valuable "trash-to-treasure" supply chain. - Inventory is a major diligence question: The listing claims $80K of inventory, but accurately valuing piles of firewood—and determining how much is properly seasoned and sellable—could be difficult. - Seasonality complicates financing: Revenue may fall dramatically during the off-season while payroll, insurance, utilities, storage, and other expenses continue. - Creative seller financing could unlock the deal: The hosts discuss profit-sharing structures where the seller receives a percentage of profits until reaching the agreed $1.2M purchase price. Subscribe to  weekly our Newsletter and get curated deals in your inbox Advertise with us by clicking hereDo you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.Do you enjoy our content? Rate our show!Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.For inquiries or suggestions, email us at contact@acquanon.com