New Deals - 4 July 2023

Hello SMB Deal Hunters!

Here are 5 new deals for you that are worth checking out.

And before we get into it, I want to share some exciting news! Starting this week, I’ll be sharing another 5 deals (for free) every Thursday.

1/ Commercial Kitchen Exhaust Cleaning Company

📍 Location: Greater Richmond, Virginia (Relocatable)
💰 Asking Price: 1,650,000
💼 Cash Flow: $515,000
📊 Revenue: $1,000,000
📅 Established: N/A

💭 My 2 Cents: I just learned that all commercial kitchens are REQUIRED BY LAW to have their ventilation and exhaust systems cleaned regularly. This business has 180 recurring revenue accounts consisting of colleges, hospitals, the military, and corporations. Each account brings in on average $5000/year, and there’s a clear path to increasing this through upselling in-depth kitchen cleanings, a requested service that the business is currently routinely turning away. Who knew kitchen grease exhaust cleaning was such a recurring revenue machine?

Click Here To View The Listing »

2/ Central TX Rapidly Growing Veteran-Owned Specialty Art Manufacturer

📍 Location: Texas
💰 Asking Price: $5,200,000
💼 Cash Flow: $1,400,000
📊 Revenue: $3,200,000
📅 Established: N/A

💭 My 2 Cents: The veteran and patriot market is very loyal, and this niche business definitely benefits from it. You can’t miss the big fat 40%+ EBITDA margins, but what I like even more about this business is the cash conversion cycle: orders are paid in full in advance, and there’s a 4-6 month backlog. There’s been no paid advertising done so far, which is a large growth opportunity. Plus, the owner wants to roll over 20% equity, which is a great sign.

Click Here To View The Listing »

3/ Custom Label Designer and Distributor - Highly Profitable & Scalable

📍 Location: Overland Park, KS (Relocatable)
💰 Asking Price: $3,160,000
💼 Cash Flow: $767,006
📊 Revenue: $1,863,000
📅 Established: 1992

💭 My 2 Cents: This business designs and distributes custom labels and barcoding products (but all manufacturing is outsourced to trade-only manufacturers). I like that its clients are mostly recession-resistant manufacturers in food and healthcare. In these industries, customers have to place orders regularly, and that's why 97% of their clients are recurring. The business does very little marketing and relies on referrals and word of mouth (a great opportunity for a buyer from a sales and marketing background!). Plus, the seller is looking to retire, which is a good sign.

Click Here To View The Listing »

4/ Virtual Accounting Practice with 40% Margins + 30% Projected Growth

📍 Location: Oregon
💰 Asking Price: $1,500,000
💼 Cash Flow: $425,079
📊 Revenue: $829,951
📅 Established: N/A

💭 My 2 Cents: This business focuses on tax advisory services (annually or quarterly tax planning consulting) as well as client accounting services (which generates monthly recurring revenue). I’d want to understand the breakdown between the two services, as the tax advisory service alone would obviously make this business very seasonal. What I like about this business is the team is fully remote, which means lower overhead but also makes it more easily scalable.

Click Here To View The Listing »

5/ HVAC Company Near the Beach with Huge Profitability

📍 Location: Horry County, SC
💰 Asking Price: $1,885,000
💼 Cash Flow: $548,728
📊 Revenue: $2,624,761
📅 Established: N/A

💭 My 2 Cents: This HVAC company on the Carolina Coast has a great reputation with over 400 5-star ratings. HVAC companies are popular because they’re always high in demand, recession-proof, and often come with recurring revenue service contracts. What I like about this specific deal on top of its great reputation: the multiple is quite reasonable, the margins are great (over 20%), and the owner is retiring.

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.

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 3,200+ 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 Intelligence Age — AI and future development updates and insights written by professionals from NASA, Stanford, and Goldman Sachs.

• GPT Hacks — 10x your growth with AI: Pro tips, use cases, and examples for startup founders, entrepreneurs, and high performers.

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

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 ($29 value). In it, I’ve compiled 50+ questions business buyers should ask during seller interview calls when evaluating a business.