This Week In SMB PE | August 27th, 2024

A Weekly Recap of SMB Deal + Opportunities

Author

Dennis Unrein
August 27, 2024

In partnership with

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.

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This Week In SMB PE

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Prior Posts:

Interested In A Deal? Expanded information included below:

1. Helicopter Flight School - Maine | $856K Revenue | $538K Cashflow

Deal Summary:

  • $856K Revenue

  • $1.3M Ask Price

  • 2.5x Multiple

  • $538K Cashflow

What Do They Do?

  1. Certified flight instructor (CFI) for Helicopters.

  2. Training Part 61 and Part 141.

  3. Also Helicopter Sales + Tourism Flights.

Highlights:

  1. 21+ years in operation.

  2. Diverse revenue streams.

  3. Includes $700K equipment.

Risks/ Concerns:

  1. Exact location not provided.

  2. Skilled labor for teaching.

  3. Compliance with aviation regulations.

2. Asphalt Paving Company - North Carolina | $1.3M Revenue | $531K Cashflow

Deal Summary:

  • $1.3M Revenue

  • $2.0M Ask Price

  • 3.8x Multiple

  • $531K Cashflow

What does the Company do?

  1. Asphalt paving roads, parking lots, driveways.

  2. Commercial + residential markets.

  3. Resurfacing, sealcoating + pothole repair.

Highlights:

  1. 25+ year reputation, established 1995.

  2. History of strong profitability.

  3. Repeating customer base.

Risks/ Concerns:

  1. New construction vs. maintenance.

  2. Seasonality.

  3. Unknown environmental liabilities.

3. Commercial Driving School - Wyoming | $706K Revenue | $206K Cashflow

Deal Summary:

  • $706K Revenue

  • $950K Ask Price

  • 4.6x Multiple

  • $206K Cashflow

What does the Company do?

  1. Commercial driving school.

  2. Proprietary training course.

  3. Defensive driving + continuing education.

Highlights:

  1. 20 years in operation.

  2. 3 month waiting list.

  3. Includes $244K equipment.

Risks/ Concerns:

  1. Dependence on qualified instructors.

  2. Equipment fair values.

  3. Significant 2023 growth (+41%).

4. IT Managed Service Provider - Wisconsin | $2.6M Revenue | $620K Cashflow

Deal Summary:

  • $2.6MRevenue

  • $2.5M Ask Price

  • 4.0x Multiple

  • $620K Cashflow

What does the Company do?

  1. IT managed services provider.

  2. Education + professional service customers.

  3. Husband + Wife team.

Highlights:

  1. Recurring revenue model.

  2. Established client base.

  3. 75% clients on “refresh schedule”.

Risks/ Concerns:

  1. Owner(s) dependency.

  2. Top 5 clients 50% of revenue.

  3. Competitive market landscape.

5. 30-Year Old Roofing Company - West Virginia | $2.1M Revenue | $1.0M Cashflow

Deal Summary:

  • $2.1M Revenue

  • $5.0M Ask Price

  • 5.0x Multiple

  • $1.0M Cashflow

What does the Company do?

  1. Full service roofing.

  2. Commercial + residential customers.

  3. Installation, re-roofing + repairs.

Highlights:

  1. 32+ years in operation.

  2. Loyal customer base.

  3. Dedicated team of 7.

Risks/ Concerns:

  1. Highly competitive industry.

  2. Seasonality + weather related issues.

  3. Owner-dependency risk.

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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