New Deals - 19 Sept 2023

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Hello SMB Deal Hunters!

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

Today’s issue is sponsored by Acquire.com, the largest startup acquisition marketplace for profitable Internet businesses.

1/ Kidney Health Infoproduct & E-Commerce Supplements Business

📍 Location: Remote
💰 Asking Price: $4,800,000
💼 TTM Profit: $852,000
📊 TTM Revenue: $1,900,000
📅 Established: 2009

💭 My 2 Cents: Did you know that 1 in 7 Americans are affected by kidney disease? This 14-year-old business offers an online program that teaches people how to potentially improve kidney function through diet, herbal medicine, nutritional medicine, meditation, exercise, and mindset practices. They also produce herbal supplements that are recommended in the program. I like that infoproducts have exceptionally high margins (and supplements aren‘t bad either). The business has grown an impressive 30% YoY, and I think there is an interesting subscription play here to generate recurring revenue that hasn’t been taken advantage of. The reason for the sale makes sense—the owners are a husband-wife team that recently divorced and want to move onto their own separate ventures.

Click Here To View The Listing »

2/ Hugely Profitable HVAC Company

📍 Location: Baltimore County, Maryland
💰 Asking Price: Best Possible Offer
💼 Cash Flow: $1,100,000
📊 Revenue: $2,100,000
📅 Established: 2015

💭 My 2 Cents: This is a decently sized HVAC business for sale from a retiring owner. I like that they have a mix of residential and commercial customers and many long-term relationships. I’d want to dig into what contracts come with the business. What's interesting is the business has grown from word-of-mouth with very little advertising. Getting paid advertising up and running as well as securing more commercial contracts with apartment buildings are interesting opportunities for a new buyer.

Click Here To View The Listing »

3/ Trucking Company Servicing The Vacuum Truck Market

📍 Location: South Central Texas
💰 Asking Price: $2,925,000
💼 Cash Flow: $750,000
📊 Revenue: $4,000,000
📅 Established: 10 years ago

💭 My 2 Cents: This business specializes in a very niche industry I never even knew existed: liquid transport services for the vacuum truck market. Vacuum trucks are used for tasks like cleaning sewer systems, emptying septic tanks, and removing industrial waste. What I love about the business is they have 80 master service agreements (MSAs) in place, which means you’re buying contracts and recurring revenue. I’d want to dig into how long they’ve worked with these 80 clients to understand how sticky these customers are. I like that the owner is selling the business for a legitimate reason: his partner is relocating.

Click Here To View The Listing »

4/ Software Development Agency With Blue Chip Clients

📍 Location: Florida (Relocatable)
💰 Asking Price: $4,000,000
💼 Cash Flow: $1,323,859
📊 Revenue: $5,210,569
📅 Established: 2011

💭 My 2 Cents: This software development agency builds advanced software platforms and services for innovative companies like Airbnb, Google, Uber, etc. What jumped out at me is that 80% of their profits come from repeat customers, which speaks to the quality of their work and customer satisfaction. Also impressive is the fact that they have grown without any outbound sales or digital advertising and have instead focused on SEO and referrals. This is a great opportunity for a buyer who has experience building out sales teams for marketing or development agencies.

Click Here To View The Listing »

5/ Pest Control E-Commerce Brand

📍 Location: Tampa, FL (Relocatable)
💰 Asking Price: $2,950,000
💼 Cash Flow: $1,349,717
📊 Revenue: $5,311,934
📅 Established: 2019

💭 My 2 Cents: This company sells eco-friendly pest control products (such as rodent repellent pouches). What jumped out to me is their high AOV of $140, which is much more than I would have expected. They sell in the US, Australia, Canada, and New Zealand both DTC and on Amazon. As with any e-Commerce brand, I’d want to dig into what their customer acquisition cost looks like, what % of their revenue they spend on marketing, and retention metrics like repurchase rates and LTV. I like that the business comes with 4 full-time team members, and I think there is an interesting opportunity here to launch new products to their existing customer base.

Click Here To View The Listing »

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See you on Thursday!

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

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📚 What I’m Reading

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• Sieva Kozinsky's Newsletter — The founder of Enduring Ventures shares weekly insights from his experience buying 17+ cash-flowing businesses.

• Frameworks & Finance by Kurtis Hanni — Join 25k+ business owners and leaders learning financial statements and growing their business every Thursday, for free.

• 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.

• Houck's Newsletter — Tactical advice every week from an a16z-backed founder on how to build, grow, and raise capital for your startup.

• SMB Scoop — Learn to find, buy, operate, and invest in profitable & cash flowing companies

⏪ Catch Up On Recent SMB Deal Hunter Issues

• September 14, 2023

• September 12, 2023

• September 7, 2023

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