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LockNLube sold a $30 grease coupler, while rivals priced theirs at $2 or $3. Jay Boren bought the New Hampshire company in 2017 for a little under $1 million, roughly 1x revenue, with the seller financing about 75% of the price. He sold it in 2024.
— THE LEAD
How Jay Boren Grew LockNLube From a Single Product to 250+ SKUs
LockNLube sells a locking grease coupler, the attachment at the end of a grease gun that connects to a Zerk fitting, a small valve used to lubricate machinery. Russell Barnes, a logger with more than 30 years of experience, founded the company in 2013 after growing frustrated with greasing the 75 fittings on his Rottne SMV harvester. He partnered with the coupler's South African inventor to distribute the product in North America and initially operated the business from his living room near Hanover, New Hampshire.
The coupler sold for about $30 when conventional alternatives cost $2 to $3. Barnes tested demand by selling 200 units directly to loggers from his Subaru, then ordered another 2,000. When Jay Boren joined as a summer intern from Dartmouth's Tuck School of Business, the company was generating a few hundred thousand dollars annually and had been profitable from the beginning. By the time Boren acquired it in March 2017, annual revenue had reached approximately $1 million.
A local accounting firm valued LockNLube at roughly 1x annual revenue, based partly on projected growth of 6% a year. Boren negotiated a lower purchase price, arguing that the business could also lose its primary supplier and fail. Barnes wanted to avoid outside investors and agreed to finance approximately 70% to 75% of the acquisition through a five-year seller note carrying 5% interest. Boren funded the remainder using a securities-backed line of credit at roughly 4% and negotiated a personal guarantee capped at 30% of the outstanding seller note.
The product served a broad market because standardized grease fittings are used on equipment ranging from riding mowers to bulldozers. LockNLube sold primarily to farmers, loggers, mechanics, and other equipment owners. Boren invested in Amazon, Google Ads, and Facebook advertising, while established tool manufacturers had relatively limited digital marketing. Early customer reviews helped the coupler stay in Amazon search results. Boren estimates it has led Amazon's greasing category for about a decade.
Customer conversations also guided the company's product expansion. Boren used recurring requests and complaints to develop grease guns, fittings, and related maintenance tools. Reinvested earnings helped the catalog grow from a handful of products to more than 250 SKUs. He acquired four or five small, single-product businesses for approximately $50,000 to $300,000 each, obtaining their products and intellectual property.
After the COVID-19 pandemic, LockNLube grew to about 20 employees, built a business-to-business sales operation, and introduced LockNFlate, a line of tire-inflation products. The company also moved into a 30,000-square-foot former newspaper printing facility, purchased with an SBA 504 loan and a 10% down payment. In August 2024, Boren sold LockNLube to Macnaught, an Australian family-owned manufacturer of lubrication equipment founded in 1948. He stayed on for about two years to support the integration.
— MIDWEEK TAPE EXTRA
New Jersey cargo van freight business asks $56K on $260K revenue
Asking price: | $56,000 |
Annual cash flow: | $155,000 |
Gross Revenue: | $260,000 |
Asking multiple: | 0.36x cash flow |
FF&E: | $55,000, included in price |
Seller Support: | Four weeks of hands-on training, plus four months of continued assistance |
The owner-operated freight transportation business is based in New Jersey and handles expedited deliveries nationwide for airports, ports, medical facilities, manufacturers, and warehouses. The sale includes a 2023 Ram ProMaster cargo van, freight-handling equipment, dispatch systems, and introductions to 35 active freight brokers. The business can operate from home and does not require a commercial driver's license. The owner is selling to move into oversized trucking.
Translation, if you own one: The $56,000 asking price is only $1,000 above the $55,000 value of the included equipment. Reported cash flow of $155,000 represents nearly 60% of revenue, an unusually high margin for a transportation business. At face value, the asking price is just 0.36x annual cash flow. However, the business is owner-operated, and the listing does not explain whether cash flow includes compensation for the owner's driving and dispatch work. A buyer should verify freight invoices, bank deposits, fuel expenses, insurance, maintenance, vehicle title, and outstanding debt. The 35 broker relationships also need scrutiny because introductions do not guarantee future loads. The buyer must establish what a replacement driver would cost before assuming the reported cash flow as profit.
COMING ON FRIDAY
Owners who delay price increases often end up needing to raise prices by 20% at once. Smaller, scheduled 5% increases can be easier for customers to plan for. This Friday, the SMB Manual explains how to introduce regular price increases and communicate them to customers.
