New Deals - 30 Aug 2023

by SMB Deal Hunter

Author

Helen Guo
August 30, 2023

Today’s Sponsor

Hello SMB Deal Hunters!

Didn’t expect me to email you today, huh? 😅 I'm testing a bonus 3rd issue this week since many of you asked me to share more deals.

I’m excited to share 3 new deals worth checking out.

Today’s issue is sponsored by Onfolio ($ONFO), a publicly traded portfolio of ∼20 Internet businesses started by Dom Wells who has been buying and growing online businesses since 2014.

Want to promote your business to my community of 9,500+ entrepreneurs and investors? Reply “advertise” and I’ll share my media kit.

1/ 4 Wingstop Franchise Locations

📍 Location: Fort Wayne, IN
💰 Asking Price: $3,650,000
💼 Cash Flow: $809,089
📊 Revenue: $4,756,091
📅 Established: 2017

💭 My 2 Cents: Did you know the rapper Rick Ross owns close to 30 Wingstop locations? Maybe you can’t rap, but this is an interesting opportunity to acquire 4 successful Wingstop locations. I like that Wingstop is an established franchise with over 1,400 restaurants across the US and overseas. All 4 locations for sale are in busy retail areas with high visibility from the street and ample parking. Stores are all surrounded by national retailers (i.e. Target, Lowes, TJ Maxx, Best Buy, Dicks Sporting Goods, etc.). This could be the perfect opportunity for someone who wants to make additional Wingstop acquisitions and build their own Wingstop empire. Brownie points if you love wings!

Click Here To View The Listing »

2/ SBA Pre-Approved HVAC Business

📍 Location: Michigan
💰 Asking Price: $1,510,000
💼 Cash Flow: $562,999
📊 Revenue: $2,288,545
📅 Established: 1976

💭 My 2 Cents: This is an SBA pre-approved HVAC business that is selling for a very reasonable multiple. Located on the Eastern shoreline of Lake Michigan, the company offers specialized HVAC installations, geothermal services, annual maintenance, and repairs to residential consumers (85%) and light commercial businesses (15%) within the county. I'd want to dig into what service contracts come with the business to understand how much recurring revenue it comes with. I like that the owner is selling because he’s retiring, and that the business comes with 10 non-union employees.

Click Here To View The Listing »

In Partnership With Onfolio

Invest in Online Businesses Alongside a Partner with a Killer Track Record

Online businesses are a lucrative investment that can yield 20-30% returns.

The problem is, you need operational expertise to run them. And ideally, diversification across different industry verticals.

An option that gets you both is co-investing with Onfolio ($ONFO).

Onfolio is a publicly traded portfolio of ∼20 Internet businesses started by Dom Wells who has been buying and growing online businesses since 2014.

In the next couple of weeks Onfolio will re-open their Preferred Shares, and they’re offering SMB Deal Hunter readers early access.

Onfolio’s Preferred Shares yield 12% annually and pay dividends quarterly.

They first issued these shares in Dec 2020 and have a 100% track record of timely payments over 10 consecutive quarters.

While the yield will be lower since you co-own the businesses, it will be diversified and passive.

One of their early pref shareholders bought $200k worth and has been paid $6k per quarter ever since!

Get Early Access

3/ Military & Patriotic Focused eCommerce Brand

📍 Location: Remote
💰 Asking Price: $5,900,000
💼 Cash Flow: $1,219,877
📊 Revenue: $6,317,924
📅 Established: 2020

💭 My 2 Cents: The patriotic and military community is very devoted, and this business carries 60 branded SKUs such as water bottles, resistance bands, apparel, etc. targeting this loyal community on Amazon and DTC (Shopify). I like that they have over 86,000 subscribers to their YouTube channel, something I rarely see that is a very powerful organic marketing channel. The business has grown an impressive 53% YoY and maintains a $73 AOV, which is decent with room to improve. The key growth opportunity that I’ve seen for businesses like this is putting together a very robust product launch calendar, which can boost AOV and LTV.

🐦 The Best of SMB Twitter (X)

Strategic finance fundamentals to maximize the long-term value of your business (link)

Let’s talk about covenants, agreements, and stipulations when acquiring a small business (link)

10 favorite follows with <10K followers (link)

How to turn $30,000 to over $3,250,000 in 10 years from purchasing a successful small business (link)

The macro state of PE based on new data. Is PE “so back”? (link)

Your business needs a brand guarantee (link)

Insider info: One thing you should know about SMB deals (link)

Pros and cons of personally guaranteeing a seller note (link)

Financial statements are nice but incomplete. Here’s the setup you should have (link)

How to grow a business via boring franchises (link)

🧠 Join the SMB Deal Hunter Mastermind

I’ve just reviewed the first round of applications this past weekend (if you applied, I’ll be in touch soon!).

If you missed it, you can apply here to join the waitlist.

As a reminder, this will be an active community for serious acquisition entrepreneurs and investors.

We'll share insights, ask questions, and collaborate in bi-weekly Zoom calls and a Slack channel.

Spots are limited and will be released on a first-come, first-served basis to qualified applicants.

See you tomorrow!

P.S. Whenever you’re ready, here are a few 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. Join the SMB Deal Hunters Mastermind, a community for serious acquisition entrepreneurs and investors where we share insights, ask questions, and collaborate in bi-weekly calls and a Slack channel. Want in? Apply here.

3. Interested in selling your business? Get an offer from me.

4. Know someone ready to sell their business? Scout a deal for me and I'll make it worth your while! I pay finders fees of $25,000 to $200,000+, all you have to do is make the introduction.

🤝 Advertise in SMB Deal Hunter

Want to promote your business to my community of 9,500+ entrepreneurs and investors? 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 (all 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.

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

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

  • The PyQuant Newsletter — Join traders & quants from Goldman Sachs & JPMorgan. Real Python code for algo trading & market data analysis twice weekly. Read in 5 minutes or less.

  • SMB Scoop — Curated SMB content for SMB owners and those aspiring to acquire through the entrepreneurship through acquisition (ETA) model

⏪ Catch Up On Recent SMB Deal Hunter Issues

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