❇️ New Deals - 14 March 2024

An outdoor recreation and adventure business, collision repair company, and 3 other interesting finds.

Author

Helen Guo
March 14, 2024

Hello SMB Deal Hunters!

Thanks for all the great feedback from the deals I shared on Tuesday!

I’m excited to share 5 new deals worth checking out.

📣 Want me to help you find a business to buy in the next 90 days and handhold you through closing your first deal? Apply to work with me.

1/ Outdoor Recreation And Adventure Business

📍 Location: Washington
💰 Asking Price: $3,125,000
💼 EBITDA: $864,000
📊 Revenue: $2,775,000
📅 Established: 2000

💭 My 2 Cents: It’s not every day you come across an outdoor adventure business. And besides being unique, there are a number of reasons I like this industry. In our world of ever-present tech, people are craving authentic experiences even more, and this demand isn’t going anywhere. This business, with experiences for every season, is located in the Pacific Northwest, an area known for prizing outdoor recreation, adventure, and an intrepid spirit. They have been in operation for over 20 years, have 5000+ reviews on social media, and enjoy favorable media coverage. They also have been steadily growing for the last 3 years and have strong margins. The transition should be smooth, as they have 5 experienced managers and an owner who is willing to consult for up to 1-year post-sale. The seller is also open to offering some seller financing. It all adds up to a great opportunity for the more outdoorsy of you.

2/ Collision Repair Company

📍 Location: Arizona
💰 Asking Price: $4,800,000
💼 EBITDA: $1,246,795
📊 Revenue: $2,214,851
📅 Established: 2016

💭 My 2 Cents: Unfortunately, car accidents happen, and they are happening increasingly often. Enter this company, which helps to clean up after an accident through offerings like towing, automotive glass replacement, painting, detailing, and paintless dent repair. I like that they work 100% through insurance, as this ensures timely payment and basically makes them recession-resistant. There is steady cash flow as they work on three to five cars per week and have an average order value ranging from $13,000 to $15,000 per claim. Some 50% of business is repeat customers, while 20% are from Google reviews, and 30% are referrals. They have strong margins of over 50% net (!) and it seems like they’re well prepared for a sale, which is nice for due diligence, as the previous 3 years of financials have been audited by an accredited accounting firm. The owners are moving out of state, so I would want to understand how committed they are willing to be in a transition. Otherwise, this is a good boring business in one of the fastest-growing cities in Arizona.

3/ Non-Destructive Aerospace Testing Facility

📍 Location: Los Angeles, California
💰 Asking Price: $5,000,000
💼 EBITDA: $1,142,839
📊 Revenue: $3,232,631
📅 Established: 1992

💭 My 2 Cents: This is a non-destructive testing (NDT) facility for the aerospace industry. What they do is ensure the integrity and safety of aerospace components and structures without causing damage in the process. This is actually an essential service for the aerospace industry because of how stringent their safety and quality standards are, and because of these safety requirements, NDT services are legally required at regular intervals. This means there is constant demand for NDT services, which results in long-term contracts (some clients have been with them the entire 30 years!) and lots of recurring revenue. Thankfully, this party doesn’t look like it’s stopping anytime soon. Because of increases in air travel demand, military spending, and space exploration, the aerospace industry is projected to grow by 8.2% between 2023 and 2030, which means more opportunities for NDT businesses. Besides these industry tailwinds and regulatory requirements, I like that there’s a high barrier to entry because of the need for approvals and certifications, that there’s an experienced team in place, and that the seller is retiring. I also really like the very strong 30% net margins and the projected 15% increase in sales in 2024.

Want to 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 investing in. Reply “LP” and I’ll share more.

4/ Marketing Agency For Real Estate Investors and Home Service Businesses

📍 Location: Remote
💰 Asking Price: $800,000
💼 EBITDA: $254,077
📊 Revenue: $626,236
📅 Established: 2019

💭 My 2 Cents: I love marketing agencies that focus on unsaturated niches as this usually results in a stickier clientele and stronger retention rates. This specific PPC, SEO, and UX/UI design agency works with real estate investors and home services, which is nice because these folks don’t tend to be digital marketing experts and they constantly need new leads. I also like that they already have a remote offshore team set up and one of the two owners is willing to stay involved, which is rare for a marketing agency. As with all agencies, you need to find out how sticky the customers are. They have them on retainer, but how long are they here for? I’d also want to know if there are any client concentration issues. If the recurring clients stick around, then there’s definitely something to explore here, especially at this reasonable price.

5/ Commercial Lawn Service

📍 Location: Lee County, Florida
💰 Asking Price: $1,300,000
💼 EBITDA: $402,101
📊 Revenue: $1,825,086
📅 Established: 2015

💭 My 2 Cents: I like commercial landscapers like this one because commercial properties need regular maintenance to keep up appearances. This lawn service is SBA lender pre-qualified and benefits from the year-round demand you find in Florida, which results in tons of recurring revenue. It also has 32 commercial contracts in place, although I want to know how long they have been under contract and if there are any client concentration issues. If everything checks out ok, then this is a really good boring business listed at a reasonable price.

🐦 The Best of SMB Twitter (X)

The top 5 ways new SMB buyers get duped in their first deal (link)

5 quick and easy things you can do to make your business your most valuable asset (link)

7 ways joining a CEO peer group was life-changing (link)

5 ways to collect cash faster (link)

Things to consider if your product fizzles out (link)

4 money misconceptions to avoid (link)

The best retirement account for solo business owners (link)

10 cash KPIs to track in your business (link)

40 boring businesses (link)

🤝 Vendors and Lenders

I’m committed to helping the SMB Deal Hunter community close more deals, faster. Click on any of the links below and I will make a personal introduction to folks I trust.

SBA 7(a) Lender: The most common way to finance an acquisition up to $5M purchase price with 10% (give or take) down with the help of a government-backed loan. My preferred lender Elyse will help you out.

Non-SBA Lender: Best for smaller deals if you want to avoid the hassles of SBA. My preferred lender Grant and his team are the only private lenders I know who offer acquisition financing with long payback periods without any collateral requirements. Note: You must have great credit.

Quality of Earnings Provider: I always recommend conducting a QoE during due diligence to uncover any red flags. Get introduced to my preferred QoE provider that offers top-tier financial due diligence without breaking the bank.

Legal Counsel: A must-have on your team to help get a deal to the finish line. Get introduced to legal counsel with experience closing SMB deals that won’t rack up your legal bill.

See you next Tuesday!

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

1. Want me to help you find a business to buy in the next 90 days and handhold you through closing your first deal? Apply to work with me.

2. 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 investing in. Reply “LP” and I’ll share more.

3. Interested in selling your business? I’ll help you connect with buyers from the SMB Deal Hunter Community.

4. Want to promote your business to my community of 50,000+ entrepreneurs and investors? Advertise in SMB Deal Hunter

⏪ Catch Up On Recent SMB Deal Hunter Issues

How was today's newsletter?

Login or Subscribe to participate in polls.

Disclaimer

This publication is a newsletter only and the information provided herein is the opinion of our editors and writers only. Any transaction or opportunity of any kind is provided for information only; SMB Deal Hunter does not verify nor confirm information. SMB Deal Hunter is not making any offer to readers to participate in any transaction or opportunity described herein.