New Deals - 20 July 2023

Hello SMB Deal Hunters!

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

Today’s issue is sponsored by Lando, the Google for business buying 🔍

1/ Profitable HVAC Company with 47 years of Loyal Business

📍 Location: Hillsborough County. FL
💰 Asking Price: $700,000
💼 EBITDA: $520,000
📊 Revenue: $1,364,551
📅 Established: 1976

💭 My 2 Cents: No, that’s not a typo. This retiring owner is selling his 47-year-old HVAC business for 1.38x EBITDA! The business serves residential and commercial clients in a prime location that allows for servicing Hillsborough, Polk, and Pasco counties. Their existing reputation gets them inbound business organically. The business does no marketing or advertising, which is a low-hanging fruit of an opportunity for a new owner.

Click Here To View The Listing »

2/ EBITDA @ $800K! Franchised Indoor Trampoline Park. Rising Sales @ 17%

📍 Location: Cobb County, GA
💰 Asking Price: $3,800,000
💼 EBITDA: $800,000
📊 Revenue: $2,339,235
📅 Established: 2018

💭 My 2 Cents: If you’ve ever been to a trampoline park, you’ll know how crowded they are. Trampoline parks are forecasted to grow at a very healthy CAGR of 16.3% between 2022 and 2032, and this location has certainly been no exception. The EBITDA margins of the business are nearly 35%, which is incredible for a retail business. Since the equipment will go through wear and tear, I’d want to dig into what kind of expenses are required for maintenance.

Click Here To View The Listing »

3/ Revenue Cycle Management

📍 Location: Texas
💰 Asking Price: N/A
💼 Cash Flow: $660,000
📊 Revenue: $1,360,000
📅 Established: 1998

💭 My 2 Cents: If you aren’t familiar with the medical billing business, you are in for a treat. These businesses provide services that facilitate the billing process between healthcare providers (in this case, long-term care/nursing homes) and insurance companies. This process involves a lot of paperwork and meticulous data management, which is why many healthcare providers choose to outsource this task to specialized businesses. It’s an incredibly high-margin business because they charge a % of collected revenue and can offshore a lot of the billing and coding work.

Click Here To View The Listing »

4/ Scaling Manufacturer & Designer of Patented, High Performance Cookware – DTC eCommerce & Wholesale (B2B) Sales Channels – 19 Patents & 10 TMs

📍 Location: Australia/USA (Remote)
💰 Asking Price: $7,900,000
💼 Cash Flow: $1,574,000
📊 Revenue: $4,609,000
📅 Established: 2014

💭 My 2 Cents: This CPG brand in the cookware space is 2/3 DTC and 1/3 B2B wholesale. The profit margins are phenomenal for a DTC brand, and they’re already in over 130 retail locations in Australia. What’s interesting to me is they’ve successfully launched over 35 Kickstarters, which shows me they’ve really nailed their product launch formula (and have found a way to improve their cash conversion cycle). I’d want to make sure the product launch/product development pipeline can be sustained since that is key to the business’s success.

Click Here To View The Listing »

5/ SBA Pre-Qual (Pending): Sleep Aid eCommerce w/ Strong Brand & Growth Ops, YoY Rev +35%, SDE +125%

📍 Location: N/A (Remote)
💰 Asking Price: $1,570,000 + Inventory
💼 EBITDA: $628,438
📊 Revenue: $1,826,537
📅 Established: 2020

💭 My 2 Cents: This eCommerce business sells a handheld, portable sleep aid and stress management device that emits calming pulses to help users manage symptoms of insomnia, sleep irregularity, anxiety, and addiction. Unlike other solutions, it’s both non-invasive and non-addictive (similar to the weighted blanket). This business isn’t fully reliant on paid social, which I like to see. Specifically, what’s interesting to me is the business sells 44% through its own affiliate network, which most businesses find a tough time scaling. They’ve also been able to crack influencer marketing, which is impressive.

Click Here To View The Listing »

See you next Tuesday!

-Helen Guo
Find Me On Twitter 
Find Me On LinkedIn

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.

2. I'm launching an exclusive SMB Deal Hunters Mastermind for serious acquisition entrepreneurs and investors in a few weeks. We'll share insights, ask questions, and collaborate in bi-weekly calls and a Slack channel. Reply "mastermind" to join the waitlist.

3. Want to reach my community of 4,800+ entrepreneurs and investors with your message? Reply “advertise” and I’ll share my media kit.

📚 What I’m Reading

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

• Frameworks & Finance by Kurtis Hanni - Kurtis decodes business finances for SMB owners and leaders (i.e. how to track and manage cash flow). I took one of his courses a few months back and learned a lot.

• The Bootstrapped Founder — Proven tactics to help you launch, build, and grow your business based on the experiences of Arvid Kahl, author of Zero to Sold and founder of FeedbackPanda.

• The Curiosity Chronicle — Renowned investor, entrepreneur, and writer Sahil Bloom provides actional, tactical insights on personal development, growth, productivity, wealth creation, and business.

• 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 Growth Newsletter — 3-4 actionable growth tactics each week from the smart folks at Y-Combinator backed Demand Curve.

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.

⏪ Catch Up On Recent SMB Deal Hunter Issues

• July 18, 2023 

• July 13, 2023