New Deals - 9 May 2023

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Welcome to the 357 of you who joined SMB Deal Hunter last week!

Here are 5 new deals (or 10 if you’re a premium subscriber) for you that are worth checking out.

1/ Commercial and Residential Roofing Contractor (Des Moines, IA)

Revenue: $12,955,252

Cash Flow: $2,168,871

Asking Price: $9,145,000

My 2 Cents: I like that this business is already set up to operate in 3 states ( Iowa, Illinois, and Florida) with an existing crew and sales reps in place. The roofing business is relatively recession resilient (a leaky roof is high up there in priorities!) and prime for a recurring revenue model given the need for repairs and maintenance. I would inquire about what regular maintenance contracts they have in place already.

Click Here To View The Listing »

2/ Largest Commercial Parking Lot Power Sweeping Contractor in the Southeast (Florida)

Revenue: $13,195,899

Cash Flow: $1,050,799

Asking Price: $3,200,000

My 2 Cents: I like that more than 80% of the business's revenues are recurring from large clients like Walmart and Costco. The business also already has a CEO who is willing to stay on. What struck me was that the business has a surprisingly low profit margin (the industry average can range from 10-25%), so this may be an interesting opportunity for a buyer to come in and improve efficiency.

For more info, contact Fernando Mello at Transworld Business Advisors

3/ Pool Service Company (San Jose, CA)

Revenue: $1,400,000

Cash Flow: $324,000

Asking Price: $990,000

My 2 Cents: Although this deal is on the smaller side, it has all the elements I like as a buyer (and I know several of you asked me to include some smaller deals!): An essential and established 28 year old business, a retiring owner, 12 existing employees, $90,000 in monthly recurring billing plus additional one-off maintenance income, and a reasonable asking price.

4/ Digital Marketing Agency with 70% Retainers (California)

Revenue: $1,527,690

SDE: $556,150

Asking Price: $1,200,000

My 2 Cents: I like that the revenues for this marketing agency are fairly diversified across its various offerings such as social media marketing, SEO, web development, content marketing, etc., and that revenues are split 50/50 between B2B and B2C clients. While the average monthly retainer is a solid $3,000, I’ll be curious what client retention looks like, as this tends to be a crucial challenge for marketing agencies.

5/ E-Commerce Forensic Technology Manufacturer (Nevada, Relocatable)

Revenue: $982,034

Cash Flow: $470,114

Asking Price: $1,900,000

My 2 Cents: Exceptional margins for an e-Commerce business, and I like the niche focus. The business has also been around for 22 years, which is rare in the e-Commerce world, and the employees are already remote so it’s easily relocatable. I also love that the customers are B2B, including police departments, universities, hospitals, etc.

Click Here To View The Listing »

If want to unlock 5 more handpicked deals instantly, upgrade to premium for just $9/month below. And if you’re already a premium subscriber (thanks!), just scroll down to see the rest of this week’s handpicked deals.

See you next week,

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