5 New Deals - 24 April 2023

Author

Helen Guo
April 25, 2023

Welcome to SMB Deal Hunter!

Here are 5 new deals for you this week.

1/ 14 Year DTC eCommerce Medical Compression & Orthopedic Support Brand

Revenue: $13,708,397

EBITDA: $1,500,503

Asking Price: $6,300,000

My 2 Cents: This business claims a very solid 45% repeat customer rate and $130 LTV. I also like that new customers are profitable with their current CAC, which is around 33% of LTV ($43). They operate their own warehouse with warehouse managers and office space for customer service, which makes me want to investigate if moving to a 3PL and offshoring some CS and can bring costs down.

2/ Specialty Med Spa in Fort Worth, TX

Revenue: $1,885,660

EBITDA: $528,523

Asking Price: $2,300,000

My 2 Cents: The global med spa market is expected to expand at a compound annual growth rate (CAGR) of 14.97% from 2023 to 20301 , and this business is 100% turnkey with existing staff in place so new owners can focus on growth. I also like that this business has been around for a while (10 years).

For more info, contact Sunbelt Business Brokers at [email protected] or 612-455-0880

3/ Superfood & Supplements eCommerce Business

Revenue: $2,358,838

EBITDA: $555,658

Asking Price: $1,700,000

My 2 Cents: I like that this business has an omni-channel presence (DTC, Amazon, Wholesale) with strong margins. One of my concerns is how commoditized the SKUs may be (they list coconut oil as a product). The sales breakdown across the various sales channel and repurchase rates on DTC/Amazon will be important to dig into.

4/ 1.6 Million Subscriber YouTube Channel

Revenue: $1,958,241

EBITDA: $1,485,884

Asking Price: $8,000,000

My 2 Cents: YouTube channels are rarely for sale, and certainly not ones of this size. What will be really important is understanding the content creation process from ideation to posting and ensuring that there isn’t one “face” behind all the videos. I’d also want to know the breakdown of sales (is it mostly ad driven or through the digital products they mention in the listing?).

For more info, contact Adam Beebe (Latona's) at [email protected]

5/ Assisted Living Facility in California

Revenue: $2,800,000

EBITDA: $1,176,837

Asking Price: $9,750,000

My 2 Cents: I like the strong tailwinds here as the geriatric population is both growing due to increased life expectancy and increasingly seeking ALS services to improve their quality of life. On top of that, the assisted living facility market is expected to grow at a CAGR of 5.53% from 2023 to 2030.2 PI also like that this business has been around for 20 years.

For more info, contact AJ Rana (Lemara Commercial) at [email protected]

That’s all for today!

See you next week,

Helen Guo

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