This Week In SMB PE | September 24th, 2024

A Weekly Recap of SMB Deal + Opportunities

Author

Dennis Unrein
September 24, 2024

Welcome to This Week In SMB PE. Our weekly recap of deals in SMB M&A, Micro Private Equity and Self-Funded Search space.

In this newsletter we highlight interesting opportunities from this past week in SMB M&A, Micro Private Equity, and Search Funds.

We target cash-flowing companies under $10MM in acquisition value.

This Week In SMB PE

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Prior Posts:

Interested In A Deal? Expanded information included below:

1. 29+ Year Motorsport Race Track - California | $1.5M Revenue | $500K Cashflow

Deal Summary:

  • $1.5M Revenue

  • $2.1M Ask Price

  • 4.3x Multiple

  • $500K Cashflow

What Do They Do?

  1. Premier short track speedway.

  2. Racing events + experiences.

  3. Host car shows, concerts, festivals.

Highlights:

  1. Boasting $40M leasehold improvements.

  2. Multi-purpose entertainment hub.

  3. Established, 29+ years in operation.

Risks/ Concerns:

  1. Insurance and unknown liabilities.

  2. Status of lease agreement.

  3. Economic sensitivity in downturn.

2. 20+ Year Card Laundromat - New York | $1.0M Revenue | $591K Cashflow

Deal Summary:

  • $1.0M Revenue

  • $3.3M Ask Price

  • 5.6x Multiple

  • $591K Cashflow

What does the Company do?

  1. Self-service laundry services.

  2. Card-operated payment system.

  3. Speed Queen - 48 washers & 56 dryers.

Highlights:

  1. Surrounded by apartment buildings.

  2. 20 year lease stability.

  3. Equipment & machines only 2 years old.

Risks/ Concerns:

  1. Why is the Owner selling?

  2. Market competition.

  3. Employee retention.

3. 60+ Year Fire & Rescue Safety Equipment Distributor - Maryland | $12.4M Revenue | $1.1M Cashflow

Deal Summary:

  • $12.4M Revenue

  • $4.4M Ask Price* - (not provided on public listing)

  • 4.0x Multiple

  • $1.1M Cashflow

What does the Company do?

  1. Fire safety equipment distribution.

  2. Personal protective equipment (PPE).

  3. Inspection, cleaning, repair and alteration of PPE.

Highlights:

  1. Founded in 1961, 60+ years in niche market.

  2. Established customer relationships + employees.

  3. Essential services, recession resistant business.

Risks/ Concerns:

  1. Regulatory compliance and standards.

  2. Workforce retention, 15+ year staff.

  3. Customer concentration risk.

4. Golf Cart Sales & Maintenance - Texas | $3.6M Revenue | $631K Cashflow

Deal Summary:

  • $3.6M Revenue

  • $2.7M Ask Price

  • 4.3x Multiple

  • $631K Cashflow

What does the Company do?

  1. Golf cart sales.

  2. Service and maintenance.

  3. Supplemental parts and accessories.

Highlights:

  1. Located in year-round golf Texas.

  2. History of profitability and established clients.

  3. Owner retiring.

Risks/ Concerns:

  1. When was the business established?

  2. Commercial % vs. retail % breakdown.

  3. Changing consumer preferences.

5. Aircraft Transport Company - Oklahoma | $2.7M Revenue | $1.1M Cashflow

Deal Summary:

  • $2.7M Revenue

  • $5.5M Ask Price

  • 4.9x Multiple

  • $1.1M Cashflow

What does the Company do?

  1. Air cargo transport.

  2. Charter flight services.

  3. Hazardous materials handling.

Highlights:

  1. Certified for nationwide charters.

  2. 24/7 operational capability.

  3. All three aircraft in great condition.

Risks/ Concerns:

  1. Regulatory compliance challenges with FAA.

  2. High operational cost.

  3. Customer concentration risks.

6. 20+ Year Water Treatment Co. - Arizona | $2.9M Revenue | $783K Cashflow

Deal Summary:

  • $2.9M Revenue

  • $2.3M Ask Price

  • 3.0x Multiple

  • $783K Cashflow

What does the Company do?

  1. High-quality water treatment solutions.

  2. Diverse product line.

  3. Water softeners, house filtration, UV sterilization.

Highlights:

  1. 20+ years in operations.

  2. Serve residential & commercial clients.

  3. Experience and knowledgeable staff.

Risks/ Concerns:

  1. Stringent federal and state regulations.

  2. Customer concentration risk.

  3. Potential environmental liabilities.

7. "The Tahoe Gal" Event Cruises - California | $1.6M Revenue | $600K Cashflow

Deal Summary:

  • $1.6M Revenue

  • $2.5M Ask Price

  • 4.2x Multiple

  • $600K Cashflow

What does the Company do?

  1. Sightseeing cruise vessel + full bar.

  2. Event hosting services.

  3. Accommodates up to 120 guests.

Highlights:

  1. Established brand reputation est. 1977.

  2. Owner looking to retire.

  3. Diverse - daily and specialty cruises.

Risks/ Concerns:

  1. What capex needed? Latest boat est. 1994.

  2. Local competition on the Lake.

  3. Customer acquisition costs.

SMB PE 101 M&A Resources

Interested in learning more about Business Buying and if it is right for you?

We have received inquiries about resources to find, locate and underwrite potential SMBs potential acquisition targets. Please find below.

If interested in following for free - check out our weekly newsletter or boring business deal database.

For those interested in paid options - check out our paid community or one-time Search databases available for sale.

3) SMB PE Accelerator: $99/ Month - Hosted via Skool

We are designing the Skool to provide M&A Advisory to individuals looking at buying companies and how to buy a company.

The average course is $2,000 in the market, so we priced our monthly community at $99. The average Search can take 12 - 24+ Months making us competitive with those in market for educational products.

  • SMB Marketplaces Database ($49): List of 60+ marketplaces + brokerages search for SMBs. (Link)

  • Due Diligence Volume I Database ($49): List of 111 questions to consider during due diligence. (Link)

  • Business Brokers Database ($149): List of 1,000+ business brokers to contact to increase deal flow. (Link)

  • How to scale to 90K followers in 90 days on Instagram ($999): Formula for posting social media on Instagram that we used to grow to 90,000 followers over 90 days (Link)

Please reach out with any questions or recommendations for the newsletter. We will do our best to incorporate.

SMB PE Disclaimer

For informational and illustrative purposes only. This communication does not constitute an offer to sell, a solicitation of an offer to buy or a recommendation of any security or any other product or service by SMB PE LLC. Prior to making any further decisions, investors should seek individual advice from their personal financial, tax, legal or other profession advisors to take into account the risks associated with their own specific situation.

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