This Week In SMB PE | September 4th, 2024

A Weekly Recap of SMB Deal + Opportunities

Author

Dennis Unrein
September 04, 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. Self Storage Contract Service - New Jersey | $1.3M Revenue | $538K Cashflow

Deal Summary:

  • $1.3M Revenue

  • $2.5M Ask Price

  • 4.6x Multiple

  • $538K Cashflow

What Do They Do?

  1. Self-storage business.

  2. Established in 2011.

  3. Staff of 20 employees.

Highlights:

  1. Recurring revenue model.

  2. High multiple industry.

  3. Loyal customer base.

Risks/ Concerns:

  1. What is occupancy rate?

  2. What is the location/ site?

  3. What competitors around?

2. Cattle Auction | $4.7M Revenue | $2.0M Cashflow

Deal Summary:

  • $4.7M Revenue

  • $9.2M Ask Price

  • 4.6x Multiple

  • $2.0 Cashflow

What does the Company do?

  1. Livestock auctions.

  2. Diverse cattle selection.

  3. Family-built and family owned.

Highlights:

  1. Stockyard with modern facilities.

  2. Consistent customer base.

  3. Established business.

Risks/ Concerns:

  1. Livestock price market fluctuations.

  2. Regulations and compliance.

  3. Competition from other local auctioneers.

3. Document Binding Company - Texas | $550K Cashflow

Deal Summary:

  • $1.8M Ask Price

  • 3.3x Multiple

  • $550K Cashflow

What does the Company do?

  1. Document binding & finishing services.

  2. Binding comb, coil and wire.

  3. Laminators and large graphics.

Highlights:

  1. 25+ years in operation.

  2. Established brand + customers.

  3. Dated website and marketing.

Risks/ Concerns:

  1. Decline of the printing industry.

  2. Any recurring customers.

  3. Commercial vs one-time customers.

4. Car Wash Business - New York | $3M Revenue | $1.0M Cashflow

Deal Summary:

  • $3.0M Revenue

  • $7.7M Ask Price

  • 7.5x Multiple

  • $1.0M Cashflow

What does the Company do?

  1. Full-service car wash.

  2. Exterior cleaning, interior detailing.

  3. High traffic area on Long Island, NY.

Highlights:

  1. 27+ years in operation.

  2. Modern equipment ensuring reduction in water consumption.

  3. Full-time manager in place.

Risks/ Concerns:

  1. High multiple industry.

  2. Equipment fair value + maintenance costs.

  3. High competition market.

5. Exterior Cladding Specialist - New Hampshire | $4.5M Revenue | $1.3M Cashflow

Deal Summary:

  • $4.5M Revenue

  • $3.9M Ask Price

  • 3.0x Multiple

  • $1.3M Cashflow

What does the Company do?

  1. Exterior cladding.

  2. Installation + maintenance.

  3. Specialize complex projects.

Highlights:

  1. 90% commercial + 10% residential.

  2. Experienced core staff + team.

  3. Strong relationships w/ suppliers.

Risks/ Concerns:

  1. 75% revenue new construction.

  2. Recession risk.

  3. Regulatory + potential liabilities.

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)

  • 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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