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- #37 - For Sale: Service business with 56% Profit Margins
#37 - For Sale: Service business with 56% Profit Margins
👋 Hey fam!
Welcome to the 106 new people who have joined this week!
In this week’s issue:
🕵🏼♀️ Service - 2 listings
🛒 eCommerce - 1 listing
🗄️ Traditional business - 3 listings
🛒 eCommerce - 1 listing
☁️ SaaS - 1 listing
Alright, Let’s explore!
Estimated Reading Time = 5 minutes
🚀 Startup Spotlight
Discover profitable online and traditional businesses.
💰 Asking Price: $3,750,000
Fitness Franchise Marketing agency, with strong operations, healthy margins, and 175+ clients across 300+ franchise locations.
Type: Service Business
✅ Key Highlights
$1,856,952 in Revenue
$86,953 in monthly profit
56% Profit Margins
175 Clients
300+ Franchise locations
🚀 Growth Opportunities
Service Offerings: Founder hasn’t mentioned the average retainer size of the clients. But first focus would be to figure increase service offerings for exisiting clients to increase the retainer size. Offerings such has graphic design, landing page design or even marketing on different platforms can help increase retainer size.
🚩Cons
Client concentration risk: If a significant portion of the agency's revenue comes from a small number of clients, there is a risk of client concentration. The loss of a major client could have a significant impact on revenue and profitability.
💰 Asking Price: $1,395,000
Family owned and operated for 15 years. The business is well optimized with an incredibly dense route of approximately 350 higher-end accounts at a 90% / 10% split of residential to commercial.
Type: Service Business
✅ Key Highlights
$1,583,660 in Gross Revenue
$341,423 in Cash Flow
90% of accounts are residential
10% are commercial
FF&E: $200,000
🚀 Growth Opportunities
Digital Marketing: Implement local search engine optimization (SEO) to improve online rankings. Start finding ways to dominate the local market for the regions majority of your clients are in.
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Feel free to book a call with Alonzo here
💰 Asking Price: $7,000,000
Profitable eCommerce with $9,750,000 in TTM revenue and $1,800,000 in TTM profit that is a well-established and reputable supplements business dedicated to providing high-quality dietary supplements and wellness products.
With a commitment to health and wellness, the business offers a wide range of natural and scientifically formulated supplements to support various aspects of a healthy lifestyle. Products are sold primarily on Amazon; the business also has a presence on its own Shopify site, Walmart.com and a small B2B business.
Type: eCom
✅ Key Highlights
$9,750,000 in TTM revenue
$1,800,000 in TTM profit
$625,000 in revenue last month
$101,000 in profit last month
🚀 Growth Opportunities
Product expansion: Introducing new product variations or complementary products can increase the average order value and cater to a broader customer base. Consider researching trends in the supplement industry to identify potential gaps in the market.
Wholesale expansion: With the product being in Walmart there’s a huge oppporuntity to go ahead and win more business in the wholesale space while having Walmart on your portfolio.
🚩Cons
Debt: Listing mentions there’s some debt in the business. Would be good to find the amount and figure out what it was used for.

🤌🏼 Thread Of The Week
Great plug & play template on how to raise capital for SMB acquirers.
FREE financial model we use to raise capital for SMB acquirers. Sharing it so you can:
➡️Plug & play with your current deals.
➡️Understand a real-life scenario.
➡️Includes IRR, COC, GP/LP returns, DSCR, etc.Please like, retweet, follow, and complete the form below:👇👇
— SMB Kapital (@SMBkapital)
6:00 PM • Mar 8, 2023

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