New Deals - 15 Aug 2023

by SMB Deal Hunter

Author

Helen Guo
August 15, 2023

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Today’s Sponsor

Hello SMB Deal Hunters!

I’m excited to share 5 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.

1/ Comprehensive Vein Procedure Clinic

📍 Location: Central U.S.
💰 Asking Price: N/A
💼 EBITDA: $900,000
📊 Revenue: $1,900,000
📅 Established: N/A

💭 My 2 Cents: Did you know that Chronic Venous Insufficiency (CVI) is estimated to occur in 1 out of 3 adults over the age of 50?! This company is the largest and most comprehensive vein and vascular center in its region, providing diagnosis and treatment of vein disorders. The demand for vein condition treatments is further bolstered by the aging American population since vein conditions become more common with age. I like that sales (and profits) have grown consistently YoY, and that the EBITDA margins are nearly 50% (!).

Click Here To View The Listing »

2/ High Growth, In-Home Personal Care for Older Adults

📍 Location: Plano, TX
💰 Asking Price: $4,500,000
💼 Cash Flow: $1,213,528
📊 Revenue: $4,887,533
📅 Established: 2000

💭 My 2 Cents: The silver tsunami is here, and this business is riding the wave! Demand for home-based assisted living continues to grow with America‘s aging population and the fact that Medicare reimbursements are increasingly favoring value-based care. This two-location franchise business provides personalized in-home care for self-pay clients (85%) and veterans (15%). The 25% net profit margins are great to see, and the business comes with 10 office staff and 135 caregivers. I like that in-home care businesses thrive on word of mouth and referrals from medical facilities, which means free marketing!

Click Here To View The Listing »

3/ Dry Cleaner and Tux Rental In Wealthy Area

📍 Location: Fairfield County, CT
💰 Asking Price: $1,500,000
💼 Cash Flow: $555,516
📊 Revenue: $909,818
📅 Established: 1980

💭 My 2 Cents: This is a high-margin business that is both a dry cleaner and a tux rental business. I like that it comes with a manager and is located in a wealthy area (Fairfield County is where Greenwich is) with a lot of new developments. Tuxedo rental is a very high-margin business (I know the guys reading this have probably gone back and forth between renting or buying!). On the dry cleaning side, the facility has the capacity to take on more business, which is great because a key growth opportunity for this business is to run paid marketing to drive more traffic.

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 expertise and diversification.

A better option is to co-invest with a company like 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

4/ Established Auto Paint & Body Shop

📍 Location: Atlanta, GA
💰 Asking Price: $4,800,000
💼 EBITDA: $1,500,000
📊 Revenue: $4,400,000
📅 Established: 1997

💭 My 2 Cents: I like that this auto paint and body shop has a strong B2B focus. Its business clients include car rental companies from the Atlanta Airport and new and used car dealerships, clients that come with reoccurring revenue. The location is great — only 15 min from the Atlanta Airport and surrounding rental car centers. I also like that the reason for the sale is the owner is retiring and that it comes with a team of 10. Plus, metro Atlanta is growing in population, which means more cars on the road and need for repairs.

5/ High-End Event Furniture Rental Company

📍 Location: Southeast US
💰 Asking Price: N/A
💼 EBITDA: $1,107,000
📊 Revenue: $2,671,000
📅 Established: N/A

💭 My 2 Cents: This company rents out luxury furniture, dinnerware, décor, and more for events such as weddings, galas, and corporate & private events. The EBITDA margins are phenomenal (over 40%!), which is unsurprising given how expensive weddings are. While the end customers may be different with each event, I know that event planners like to use the same vendors over and over again if they have a good experience. I'd want to dig into how seasonal cash flows are and make sure I understand the seasonality of the business well.

Click Here To View The Listing »

🐦 The Best of SMB Twitter

A creative SMB deal sourcing strategy (link)

A good explanation of self-funded search vs traditional search vs independent sponsor model (plus, a hybrid model) (link)

How to use negotiating psychology when price re-trading is justified by QoE (link)

A business accounting cheat sheet (link)

How tons of SMB deals get done by non-MBA people that don’t speak “Working Capital” (link)

A business making $1.8M/year with a stupid simple business model (link)

🧠 Mastermind Announcement - Applications Now Open!

I know I’ve been teasing you guys for a while now, but I’m excited to finally open applications for the SMB Deal Hunter Mastermind!

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 on Thursday!

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. 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. Want in? Apply here.

3. Raising money for a deal under LOI and need introductions to investors? Reply “fundraise” for my help.

🤝 Advertise in SMB Deal Hunter

Want to promote your business to my community of 6,500+ 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):

  • 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

  • Early Bird Stock Market News — A daily email newsletter powered by MarketBeat that covers the top stories that will impact the stock market each day

  • The Breakthrough by Mark Manson — From the author of The Subtle Art of Not Giving a F*ck, receive one idea, one question, and one exercise each week that could spark your next breakthrough.

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