This Week In SMB PE | September 17th, 2024

A Weekly Recap of SMB Deal + Opportunities

Author

Dennis Unrein
September 17, 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. Full Service Septic Company - Florida | $6.3M Revenue | $681K Cashflow

Deal Summary:

  • $6.3M Revenue

  • $3.5M Ask Price

  • 5.2x Multiple

  • $681K Cashflow

What Do They Do?

  1. Full service septic company.

  2. Septic repair, service, installation.

  3. Emergency repair solutions.

Highlights:

  1. 25+ years in operation.

  2. Includes $1.3M FF&E + $300K RE.

  3. Property easily accessible from highway.

Risks/ Concerns:

  1. Insurance in Florida market.

  2. Fair value of equipment.

  3. Skilled labor shortages .

2. Artificial Turf Company - Texas | $2.9M Revenue | $689K Cashflow

Deal Summary:

  • $2.9M Revenue

  • $4.7M Ask Price

  • 6.9x Multiple

  • $689K Cashflow

What does the Company do?

  1. Design + build synthetic turf fields.

  2. Athletic fields football, baseball, soccer.

  3. Both indoor and outdoor facilities.

Highlights:

  1. Profitable, established business.

  2. Includes $1.4M FF&E + $1M Inventory.

  3. No company website, Facebook only.

Risks/ Concerns:

  1. Currently no leased space or land.

  2. Reliance on key customers.

  3. Project-based revenue model.

3. Children's Entertainment Center - California | $825K Revenue | $300K Cashflow

Deal Summary:

  • $825K Revenue

  • $1.1M Ask Price

  • 3.7x Multiple

  • $300K Cashflow

What does the Company do?

  1. Indoor play space and party center.

  2. Birthday party hosting.

  3. Established franchise location.

Highlights:

  1. 17+ years in operation.

  2. Diverse revenue streams.

  3. Located in high-traffic shopping mall.

Risks/ Concerns:

  1. High local competition.

  2. Liability and injury insurance.

  3. Limitations from franchise network.

4. 20+ Year Landscaping Company - New York | $2.0M Revenue | $1.2M Cashflow

Deal Summary:

  • $2.0M Revenue

  • $2.6M Ask Price

  • 2.1x Multiple

  • $1.2M Cashflow

What does the Company do?

  1. Lawn care and maintenance.

  2. Landscape design and installation.

  3. Seasonal services (snow removal, holiday lights).

Highlights:

  1. Established business w/ 450+ accounts.

  2. Outstanding reputation.

  3. Running 3x total landscape crews.

Risks/ Concerns:

  1. Labor shortages in the team.

  2. Seasonal fluctuations in demand.

  3. Price competition in market.

5. Pet Store Franchise - Texas | $5.4M Revenue | $1.3M Cashflow

Deal Summary:

  • $5.4M Revenue

  • $4.8M Ask Price

  • 3.5x Multiple

  • $1.3M Cashflow

What does the Company do?

  1. Puppy + dog related products.

  2. Sell dog food, accessories, toys.

  3. Top 5 store out of 200 locations.

Highlights:

  1. Established brand recognition.

  2. Located in busy shopping center.

  3. Strong staff and manager in place.

Risks/ Concerns:

  1. Business started in 2020, why sell?

  2. Reliance on franchise rules.

  3. Pet market saturation.

6. Traffic Management Firm - New York | $20.0M Revenue | $2.2M Cashflow

Deal Summary:

  • $20.0M Revenue

  • $11.0M Ask Price

  • 5.0x Multiple

  • $2.2M Cashflow

What does the Company do?

  1. Traffic management solutions.

  2. Ensure pedestrian safety.

  3. Trained + certified professionals.

Highlights:

  1. Consistent demand.

  2. Commercial customer base.

  3. Minimal marketing to-date.

Risks/ Concerns:

  1. Regulatory compliance challenges.

  2. Key personnel retention issues.

  3. Litigation risks and potential liabilities.

7. Pirate Ship Party Boat Tour - Mexico | $4.0M Revenue | $3.5M Cashflow

Deal Summary:

  • $4.0M Revenue

  • $2.9M Ask Price

  • 0.8x Multiple

  • $3.5M Cashflow

What does the Company do?

  1. Pirate ship party tours.

  2. Themed entertainment experiences.

  3. Alcohol + merchandise sales.

Highlights:

  1. Exclusive liquor license to sell off dock.

  2. Equipment: 2x large ships + 1x speed boat.

  3. Seller ran similar business 1990 - 2013, longtime operator.

Risks/ Concerns:

  1. Owner dependency risk.

  2. Vulnerability to Mexico tourism laws.

  3. Owner health issues/ fire sale.

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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