?? New Deals - 11 Jan 2024

Hello SMB Deal Hunters!

Thanks for all the great feedback from the deals I shared on Tuesday!

?? Community Top Picks from the Last Issue:

#1: Non-destructive testing service provider with legally mandated work

#2: Youth entrepreneurship e-learning business with government contracts averaging $100,000

#3: Chain of dry cleaners that’s been in business for over 100 years

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

1/ Medical Spa with Membership Model

?? Location: Fairfax County, Virginia ?? Asking Price: $2,599,999 ?? EBITDA: $600,000 ?? Revenue: $2,000,000 ?? Established: 2010

?? My 2 Cents: As I’ve said before, botox is the new bitcoin. People these days really care about their appearance, so med spas like this one that offers services from botox to hair removal treatments are absolute cash cows, especially because these treatments require regular maintenance. It’s why the med spa market is expected to grow at a CAGR of 13.75% from 2022 to 2028 and why this particular business has more than 48,000 customers. Besides the sizable customer list, this med spa sets itself apart with its membership (aka subscription) business model. This provides stable and predictable recurring revenue, which separates it from other medspas out there. I’d want to see what customer churn and retention look like, but otherwise, this is a great business with tons of room to expand by either offering new services or even opening new locations.

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2/ Luxury Shoe Brand

?? Location: Tampa, Florida (Relocatable) ?? Asking Price: $2,975,000 ?? EBITDA: $849,963 ?? Revenue: $7,607,351 ?? Established: 2014

?? My 2 Cents: This is a luxury shoe brand that sells both through wholesalers and DTC through their website. The wholesale side of the business is really interesting to me. They have 200+ wholesale accounts (including legit retailers like Nordstrom and Bloomingdale’s) and have a wholesale AOV of $10k - $25k, which is great. However, the DTC wing is nothing to sneeze at either with a $114 AOV and 27% repurchase rate. What I like about this setup is that the retail presence naturally creates a flywheel effect for the DTC business because people who see products in stores often end up buying online, which ultimately lowers DTC marketing costs (the dream). Besides that, I also really like that the owner wants to roll equity and stay on and keep running the company in the hope of a second exit down the line. This perfectly aligns incentives, both derisking the transition and making it so you don’t have to be involved on a day-to-day basis. It really looks like an ideal situation, but before forking over any cash, I’d want to better understand what CAC and LTV look like on the DTC side and how in-store sales, wholesaler retention, and order frequency look like on the wholesale side.

View The Listing

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