This Week In SMB PE | August 20th, 2024

A Weekly Recap of SMB Deal + Opportunities

Author

Dennis Unrein
August 20, 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. Equipment Rental and Dealers - Washington - | $1.2M Revenue | $520K Cashflow

Deal Summary:

  • $1.2M Revenue

  • $2.4M Ask Price

  • 4.6x Multiple

  • $520K Annual Cash Flow

What does the Company do?

  1. Rents equipment and machinery.

  2. Daily + long-term rentals

  3. Equipment sales for new purchase.

Highlights:

  1. 50+ years in operation.

  2. $1.9M in inventory.

  3. Limited competition in area.

Risks/ Concerns:

  1. Insurance and unknown liabilities

  2. Equipment fair value estimate.

  3. Regulatory compliance issues.

2. Cars & Golf Carts - Virginia - | $15.2M Revenue | $1.2M Cashflow

Deal Summary:

  • $15.2M Revenue

  • $2.9M Ask Price

  • 2.4x Multiple

  • $1.2M Cashflow

What Do They Do?

  1. New and used cars.

  2. Golf cart rental + sales.

  3. Retail and wholesale.

Highlights

  1. Established history, 20+ years in operations.

  2. Diverse revenue mix sales + rentals.

  3. Established supplier relationships.

Risks/ Concerns:

  1. Inventory management challenges.

  2. Market demand fluctuations.

  3. Owner listed no SBA loans.

3. Restoration & Softwash Business - Vermont - | $1.3M Revenue | $560K Cashflow

Deal Summary:

  • $1.3M Revenue

  • $2.9M Ask Price

  • 5.4x Multiple

  • $560K Cashflow

What Do They Do?

  1. Restoration services.

  2. Softwashing solutions.

  3. Exterior cleaning.

Highlights:

  1. 41+ years in operation.

  2. Established customer base.

  3. Minimal marketing to-date.

Risks/ Concerns:

  1. Seasonality of revenue.

  2. Competition in local market.

  3. Reliance on skilled labor.

4. Commercial Sign Company - Utah - | $6.1M Revenue | $939K Cashflow

Deal Summary:

  • $6.1M Revenue

  • $3.0M Ask Price

  • 3.2x Multiple

  • $939K Cashflow

What does the Company do?

  1. Custom signage solutions.

  2. Banner production.

  3. Installation services.

Highlights:

  1. 28+ years in operation.

  2. Opportunities for geographic expansion.

  3. Diversified client base.

Risks/ Concerns:

  1. Larger team, 42 people.

  2. Dependence on owner.

  3. Competition in industry.

5. Commercial Glass Installation - Texas - | $4.7M Revenue | $960K Cashflow

Deal Summary:

  • $4.7M Revenue

  • $3.4M Ask Price

  • 3.6x Multiple

  • $960K Cashflow

What does the Company do?

  1. Commercial glass installation.

  2. Storefront systems.

  3. Custom glass solutions.

Highlights:

  1. $7M+ in backlog.

  2. 85% repeat customer base (no residential clients).

  3. Experienced team in place.

Risks/ Concerns:

  1. Workforce retention.

  2. Materials & glass costs.

  3. Economic downturn impacts.

6. Accounting and Tax Services - Tennessee - | $613K Revenue | $544K Cashflow

Deal Summary:

  • $613K Revenue

  • $1.5M Ask Price

  • 2.8x Multiple

  • $544K Cashflow

What does the Company do?

  1. Accounting services firm.

  2. Payroll, bookkeeping, tax.

  3. Remote technology.

Highlights:

  1. 10+ year operating history.

  2. Stable, recurring revenue.

  3. Low multiple.

Risks/ Concerns:

  1. Owner dependency.

  2. Revenue quality.

  3. Client retention post-close.

7. Waste Removal Business - South Dakota - | $1.3M Revenue | $402K Cashflow

Deal Summary:

  • $1.3M Revenue

  • $1.5M Ask Price

  • 3.7x Multiple

  • $402K Cashflow

What does the Company do?

  1. Garbage removal business.

  2. Commercial + residential customers.

  3. Comprehensive waste management services.

Highlights:

  1. Consistent revenue + contracts.

  2. Includes $815K of equipment.

  3. Recession resistant.

Risks/ Concerns:

  1. Only 7 years old, why sell?.

  2. Maintaining operational aspects.

  3. Labor and talent retention.

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.

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)

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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