New Deals - 11 July 2023

Hello SMB Deal Hunters!

Here are 5 new deals worth checking out.

1/ Shenandoah Valley VA CPA Practice for Sale

📍 Location: Virginia
💰 Asking Price: $1,650,000
💼 Cash Flow: $647,000
📊 Revenue: $1,350,000
📅 Established: N/A

💭 My 2 Cents: One common issue with CPA firms is seasonality heavily concentrated on Q1 during tax season, which is why I like that this CPA firm comes with year-round cash flow from its mix of services, including tax (48%), accounting (32%), and other (20%). Although the owner is retiring, this practice comes with a team of existing staff. This business screams, “Take me home, country roads 🎶.”

Click Here To View The Listing »

2/ CMS SaaS Company With Recurring Revenue

📍 Location: Southeast US
💰 Asking Price: N/A
💼 EBITDA: $1,105,000 
📊 Revenue: $2,108,000
📅 Established: N/A

💭 My 2 Cents: This B2B SaaS business offers contract management solutions (similar to a Docusign or Pandadoc). Its growth has been impressive, with revenue growing at a CAGR of 44.6% from 2020 through the trailing-twelve months (TTM) ending May 31, 2023. I also love that 95% of the company’s customer base is on yearly auto-renewing contracts. That being said, I’m curious to understand how the product is differentiated from other existing solutions.

Click Here To View The Listing »

3/ 95% Retainer-Based Social Media & SEM Agency

📍 Location: Australia & UK
💰 Asking Price: AUD $7,000,000
💼 EBITDA: AUD $1,275,889
📊 Revenue: $14,743,935
📅 Established: 2013

💭 My 2 Cents: This is a B2C performance digital marketing agency focused on e-Commerce businesses. I like that its average retainers are high ($4000) and that it has a solid number of active clients (250). Its geographic focus on the APAC and UK markets might make it a great acquisition for a US-based marketing agency looking to expand. What jumped out as an opportunity is that their profit margins are lower than average for a marketing agency, which might indicate there are some cost-cutting initiatives (i.e. offshoring) that could be implemented.

Click Here To View The Listing »

4/ Enterprise Tech Executive Platform & Conference

📍 Location: New York, NY
💰 Asking Price: $1,950,000
💼 Cash Flow: $560,000
📊 Revenue: $500,000
📅 Established: N/A

💭 My 2 Cents: This company brings together hundreds of large enterprise tech executives that hold hundreds of millions of annual IT spend budgets. The company hosts exclusive events and has relationships with many large tech companies. Conferences are a highly lucrative industry, and there’s a large opportunity to find sponsors willing to pay top dollar to reach this audience of decision-makers. In fact, I just spoke to 5 B2B SaaS companies last week who would die to get in front of this audience! There’s probably also an opportunity to launch a newsletter and generate paid newsletter sponsorships as well.

Click Here To View The Listing »

5/ 8+ Yr Old eCommerce Electronics Brand w/ YOY Growth

📍 Location: Kansas
💰 Asking Price: $5,150,000
💼 Cash Flow: $1,142,080
📊 Revenue: $9,171,330
📅 Established: 2015

💭 My 2 Cents: This is a super interesting business with solid margins that purchases commercial-grade electronic name-brand return products at a deep discount from large distributors and resells them to commercial and consumer end users via eCommerce platforms (eBay, Amazon, and DTC). They also have a small brick-and-mortar location in Kansas that generates 3.5% of revenue. I like that the business already comes with a full team of 22 FT employees, and I think there are two interesting opportunities: 1) Add more SKUs, and 2) Expand onto Walmart.com, a rapidly growing marketplace.

Click Here To View The Listing »

See you on Thursday!

Helen Guo

P.S. Whenever you’re ready, here are 3 ways for us to work together:

1. Invest with me in cash-flowing SMB deals. I’m bringing on a select few investors from this community into businesses I’m buying and operating. Reply “LP” and I’ll share more.

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3. Want to reach my community of 4,000+ entrepreneurs and investors with your message? Reply “advertise” and I’ll share my media kit.

📚 What I’m Reading This Week

Everyone always asks how I stay up-to-date, so here are a few of my favorite newsletters:

• The Sweaty Startup — “Boring business” entrepreneur Nick Huber who sold his 7-figure service business and now runs a self-storage portfolio shares actionable insights with entrepreneurs and investors.

• The Average Joe — New market trends and ideas read by 100,000+ investors (always interesting and focused articles).

• The Yellowbrick Road — An AI that reads and summarizes hundreds of articles a day to find the best trade ideas to help you make more money in the stock market.

  Houck’s Newsletter — Tactical advice to build, grow, and raise capital from Michael Houck, an a16z-backed founder.

• Dinner Table Discussions — Financial news for parents who want to keep their kids informed on the financial world around them and teach them financial literacy.

All free, all quality. Check ‘em out.

If you refer 1 friend to my newsletter, I’ll also send you The Comprehensive Seller Interview Question Bank I’ve put together for free ($99 value). In it, I’ve compiled 50+ questions business buyers should ask during seller interview calls when evaluating a business.