📡 SMB Signal: Manufacturing businesses, building in a shaky market and more on SBA loans

Hello, and welcome to 📡 SMB Signal by Mainshares! Each week, we spotlight high-quality small business deals, operator insights, and tactical playbooks for buying, running, or investing in Main Street businesses. Join 8,000+ investors and operators staying sharp and deal-ready.

🔍 Deal watch

Looking to invest? Here are the latest SMB investment opportunities on Mainshares.

1. Wire Harness Manufacturing Business

📈 Investment Opportunity
Location: California
Founded Year: 1998
Cash Flow: $2,598,649
LTM Revenue: $15,669,132

TLDR: A seasoned sponsor is acquiring a 27-year-old wire harness business in Southern California generating $2.6M+ in EBITDA. It serves OEMs in defense, security, and industrial automation—sectors where quality, speed, and trust matter more than price.

Why is this interesting?

• Sticky revenue. 95%+ of orders are repeat, with long-standing customer relationships baked in. This business is embedded in its customers’ supply chains.

• Operational edge. The sponsor brings hands-on experience in lean manufacturing, B2B sales, and enterprise tech—plus a detailed value creation plan from day one.

• Team continuity. With a tenured management bench in place—many with over a decade at the company—and a 6-month transition from the sellers, this deal balances stability with upside.

2. Email Marketing Company in B2B Niche

📈 Investment Opportunity
Location: New York
Founded Year: 2003
Cash Flow: $1,776,118
LTM Revenue: $3,141,862

TLDR: A repeat entrepreneur and former CMO is acquiring a B2B marketing tech & services company with $1.8M in EBITDA and a 90% client renewal rate. The firm provides high-margin, enterprise-grade support across email marketing automation, systems integration, HTML/CSS development, and campaign ops.

Why is this interesting?

• Sticky enterprise revenue. Clients are locked in on annual and multi-year contracts, with a 90% renewal rate and strong client tenure in sectors like associations and affiliate networks.

• Experienced operator. The sponsor brings 20+ years across tech, eCom, and media and is stepping in as full-time CEO post-close.

• Aligned seller. The founder is retiring but committed to a 12-month transition to preserve continuity and support key accounts.

Looking to acquire? Here are a few standout small businesses actively seeking an operator to take the reins. If you’re actively searching, fill out your Buyer Profile to unlock deal flow—or email us to learn more about a specific opportunity.

3. Precision Metal Component Manufacturer 

🔑 Buyer Opportunity
Location: Texas
Founded Year: ~2004
Cash Flow: $2,000,000+
LTM Revenue: $9,286,000 (2025 projected)

TLDR: A 20-year-old precision manufacturing and fabrication business in the DFW metroplex is available for purchase. The company specializes in highly essential, low-cost metal component parts used in HVAC, architectural, industrial, and electrical applications. With strong recurring revenue, skilled labor, and nearly $4MM in state-of-the-art machinery (mostly acquired in 2022), the company is poised for significant growth.

Why is this interesting?

• Recurring, essential revenue. Most revenue is repeat business from long-standing customers, with high demand for mission-critical but lower-cost metal components.

• Operational leverage. The team of 29 includes cross-trained machinists and 3 key personnel (engineering, quality, and production control), allowing the owner to work less than 25 hours per week.

• Significant growth runway. A $2.5MM order is locked in for 2025, a new $2MM order is under discussion, and a product launch may add $2MM–$4MM more—none of which are baked into current financials.

The deal is priced at 3.9x EBITDA, with transferable debt at just 4% interest. For a shop with modern machinery, stable operations, and a clear path to $10MM+ in revenue, this is a compelling opportunity.

4. Custom Welding and Metal Fabrication Shop

🔑 Buyer Opportunity
Location: Ohio
Founded Year: 1962
Cash Flow: $1,900,000
LTM Revenue: ~$6,000,000

TLDR:  A legacy metal fabrication business with over 60 years of operating history and a reputation for craftsmanship. The shop serves a broad customer base across manufacturing, construction, and retail with custom welding and laser-cutting services. All production is done in a single-shift, 25,500 sq ft facility—on 4.7 acres—owned by the sellers and available for purchase.

Why is this interesting?

• Established relationships & legacy. Multi-decade customer relationships across diverse end markets. Top customer accounts for just ~14% of sales.

• Growth capacity with no sales team. All sales are currently handled by one owner. There’s no dedicated salesperson or outbound marketing, despite recent $6MM+ revenue performance.

• Operational expansion potential. Facility supports up to $7MM in output without changes, plus capacity for physical expansion with additional equipment and hiring.

🎥 Upcoming events

🗓️ Friday, May 16
🕛 12 PM CT / 1 PM ET
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What does it really take to build a small business that’s profitable, durable, and worth something?

Join us for a tactical conversation with Alex Caruso, founder of POM Industries (makers of POM pepper spray), who grew his manufacturing business from a $30K startup to over $5M in revenue.

In this Q&A session, he’ll open up about the realities of starting and scaling a manufacturing business, and share 3 principles of building a valuable SMB. Expect practical insights, an honest look at the road to success, and time at the end for Q&A.

🔑 Top questions asked this week

Every week, we pull real questions straight from the Mainshares community, where small business buyers, investors, and operators swap notes, deals, and advice in real time. Here are some of the top insights from the week.

1. How should you approach initial intro calls with sellers?

A: From James Barrett, Community Member

I try take these intro calls very informally, depending of course on the sellers demeanor. This is a first impression to show your human side, and quickly get across your ability, versatility, and leadership qualities (among others).

I start with an intro for myself (<5min) and then kick it over to them to explain their journey. From there, I try to build casual rapport and make connections to their background, inserting as many natural questions based on how they respond.

Things I like to walk away with:

• Why are you selling

• What is important to seller

• Family/personal obligations/wants/needs

• Who are the key employees and why

• General understanding of their day to day

• What kind of buyer are they looking for (phrased appropriately)

• What kind of risks do they see with someone like me stepping in

• Agreement to execute on MNDA to share financials, start evaluation, and meet again with some more detailed/thorough questions

People like to say to treat the first call like a first date. Don’t get too serious, you’re not walking down the aisle yet.

2. What should you consider when evaluating a franchise opportunity?

A: From Rohan Kakar, Community Member

I have a friend who operates over 70 franchise units, and I picked up a few key lessons from their experience:

1. Exit Clause – Be sure to read this carefully. Some franchisors impose unrealistic requirements that make it difficult to exit the business. In my friend's case this lead to costly and stressful legal battles.

2. Recurring Fees – Understand the structure of ongoing fees like royalties and marketing contributions. Also, clarify whether the franchisor has the authority to adjust these fees unilaterally.

3. Brand Risk – Since this is a newer brand, investing in it is essentially a bet on the management team’s ability to build brand awareness, negotiate favorable master agreements, and manage capital effectively.

4. Local Marketing Responsibility – If driving local business falls on you, be prepared to invest heavily in marketing—think community events, first-time customer discounts, etc. It’s worth negotiating some initial marketing support or budget contribution from the franchisor.

3. What is the impact of a spouse on an SBA loan?

A: From Sam Domino, Buy With Mainshares Advisor

Usually, if your spouse isn’t going to be on the loan (or less than 20% ownership in the business), their credit will not impact the SBA loan. They will be looking at you specifically. As long as the line of credit is in their name, and they aren’t co-owning or signing, you should be okay.

That said, if you both have joint debt, that can impact your DTI ratio when analyzing personal liquidity. Large household debt could hurt the financing process slightly.

🔁 ICYMI

• Raoul Kouamou Acquires $9M Infrastructure Business with Mainshares (Case Study)

• Raising Equity in SBA-Financed Deals: Strategy, Structures & New Rules (Virtual Event)

• Taking over the Family Pool Demolition Business with Bob Frisch of Frisch & Sons (SMB15 Interview)

🎙️ Latest podcast episode

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