This Week In SMB PE | September 10th, 2024

A Weekly Recap of SMB Deal + Opportunities

Author

Dennis Unrein
September 10, 2024

In partnership with

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.

This Week In SMB PE

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Prior Posts:

Interested In A Deal? Expanded information included below:

1. Scrap Metal Recycling & Disposal - Texas | $2.1M Revenue | $439K Cashflow

Deal Summary:

  • $2.1M Revenue

  • $1.7M Ask Price

  • 4.0x Multiple

  • $439K Cashflow

What Do They Do?

  1. Scrap metal recycling.

  2. Ferrous and non-ferrous services.

  3. Container management for clients.

Highlights:

  1. Established in DFW since 2004.

  2. Small team of 9 employees.

  3. Diverse revenue streams.

Risks/ Concerns:

  1. Owner dependency risk.

  2. Fluctuating metal prices.

  3. Regulatory compliance challenges.

2. Outdoor Adventures Business - Nevada | $1.7M Revenue | $588K Cashflow

Deal Summary:

  • $1.7M Revenue

  • $1.6M Ask Price

  • 2.9x Multiple

  • $588K Cashflow

What does the Company do?

  1. Outdoor Adventures.

  2. Rafting + Kayaking Rentals.

  3. Guided River + Hiking tours.

Highlights:

  1. Includes FF&E valued at $445K.

  2. Less 1 Hour From Las Vegas.

  3. Profitable business.

Risks/ Concerns:

  1. Seasonal fluctuations in tour demand.

  2. Local competitive landscape.

  3. Regulatory + permit regulations.

3. Art Transport & Installation Company - New York | $800K Cashflow

Deal Summary:

  • $3.5M Ask Price

  • 4.4x Multiple

  • $800K Cashflow

What does the Company do?

  1. Art installation, placement and transportation.

  2. Serves museums, galleries, private collections.

  3. 40 year old company.

Highlights:

  1. Established client base in NYC.

  2. Highly trained staff.

  3. State-of-the-art installations techniques and devices.

Risks/ Concerns:

  1. Owner dependency risk.

  2. Unknown liabilities and regulations.

  3. Anyone on staff as true president/ GM.

4. Wedding Venue & Event Planning - New York | $2.2M Revenue | $724K Cashflow

Deal Summary:

  • $2.2M Revenue

  • $2.9M Ask Price

  • 4.1x Multiple

  • $724K Cashflow

What does the Company do?

  1. Full service event planning services.

  2. Weddings, corporate and private events.

  3. Event planning fees + referral commissions.

Highlights:

  1. Exclusive venue with panoramic views.

  2. High-margin service offerings.

  3. Located 1:15 from NYC.

Risks/ Concerns:

  1. Competition in market for events.

  2. Recession uncertainty.

  3. Liability risks + unknown liabilities.

5. Janitorial Firm - Illinois | $3.8M Revenue | $557K Cashflow

Deal Summary:

  • $3.8M Revenue

  • $1.7M Ask Price

  • 3.1x Multiple

  • $557K Cashflow

What does the Company do?

  1. Janitorial services.

  2. Day time staff + night time staff.

  3. Routine cleaning for commercial spaces.

Highlights:

  1. Established client contracts.

  2. History of profitability.

  3. Recurring revenue.

Risks/ Concerns:

  1. Employee turnover.

  2. Operational day-to-day.

  3. Regulatory compliance/ cleaning licenses.

6. Luxury "Glamping" Business - | $2.4M Revenue | $631K Cashflow

Deal Summary:

  • $2.4M Revenue

  • $4.2M Ask Price

  • 6.7x Multiple

  • $631K Cashflow

What does the Company do?

  1. Designs custom "glamping" experiences.

  2. Glamping = Luxury Camping.

  3. Operates multi-state glamping sites.

Highlights:

  1. Diverse revenue (Events, Nightly Stays, Retreats).

  2. High demand for experiential travel.

  3. Caters to social media travelers seeking unique stays.

Risks/ Concerns:

  1. Liabilities and unknown past liabilities.

  2. Marketing spend + customer acquisition.

  3. Complexity of managing multiple glamping locations.

7. The Worm Farm - California | $2.5M Revenue | $1.4M Cashflow

Deal Summary:

  • $2.5M Revenue

  • $1.7M Ask Price

  • 1.2x Multiple

  • $1.4M Cashflow

What does the Company do?

  1. Sell fishing and composting worms.

  2. Supply landscaping + homeowners w/ soil.

  3. Worm castings, worms, fertilizers, nutrients.

Highlights:

  1. 30+ years in operation, established 1995.

  2. Diverse revenue streams.

  3. Owner retiring.

Risks/ Concerns:

  1. Owner dependency risk.

  2. Supply chain + distribution complexity.

  3. Customer concentration 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.

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.

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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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