📡 SMB Signal: $1M Capital Raise, 3 New Deals & Due Diligence Tips

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 12,000+ investors and operators staying sharp and deal-ready.

 🎉 Customer story

We love telling real stories from the frontlines of SMB acquisition. Here’s one from two operators who recently raised over $1M on Mainshares to acquire a mission-critical vertical SaaS business in the aging and insurance sector.

After over a decade building careers at Amazon, TikTok, and Alpha Wave Global, Ben Heah and J.Y. Chia decided they wanted to operate a business of their own. Rather than start from scratch, they took a different route: they went looking for a great business to buy.

Their search led them to Innovative Data Systems, a 30-year-old case management software company serving aging services and insurance providers. The business had everything they were looking for: sticky customers, mission-critical software, and long-term cash flow.

But to close the deal and build a long-term holdco, they needed capital.

To fund the acquisition, Ben and J.Y. took a modern approach of raising over $1 million from Mainshares investors to close the deal. Congrats to both on a successful acquisition!

🔍 What’s in the Deal Depot?

Property Rental Business

📈 Investment Opportunity
Location: California
Cash Flow: $698K
LTM Revenue: $1.6M

An experienced acquisition firm is acquiring a recession-resistant property management company with sticky recurring revenue, a seasoned ops team, and immediate EBITDA expansion potential. With over 425 doors under management, the business runs on scalable systems and generates the vast majority of its revenue from high-margin, repeatable services.

Why it’s interesting:

• Sticky revenue model: 85–90% of revenue comes from recurring fees tied to ongoing management and maintenance.

• Stable foundation: Backed by tenured staff and operational infrastructure that scales.

• Disciplined upside: Near-term EBITDA lift is possible through margin optimization, not risky projections.

Premium Firearms Retailer

🔑 Buyer Opportunity
Location: Parker, CO
Founded: 2017
Revenue (2024): $4.6M
SDE (2024): $621K

TLDR: This is a high-performing, independently owned firearms retailer with a loyal base of affluent customers and a strong foothold in the Colorado market. With a premium product mix and an exceptional customer service reputation, the business operates profitably from a prime retail location, despite having zero online presence. The owner is semi-passive, working ~20 hours/week. Extensive inventory, exclusive brands, and untapped digital growth channels make this a rare opportunity in a growing vertical.

Why is this interesting?

• Massive upside potential: Simple digital expansion: adding online sales, a basic website, and social media strategy.

• Diversified product mix: Across firearms (70%), ammo (20%), and accessories (10%), supported by premium sourcing relationships.

• Low owner involvement: Owner works part-time, primarily handling scheduling, large purchases, and banking.

• Prime retail location: Strong visibility and accessibility; 2,200 sq ft leased at $5,500/mo with renewal flexibility.

Large-Format Graphics & Installation Business

🔑Buyer Opportunity 
Location: Los Angeles, CA
Founded: 1993
Revenue (2024): $7.2M
SDE (2024): $1.1M

TLDR: This is a 30+ year-old, full-service large-format printing and installation company servicing marquee clients across sports, live events, retail, and corporate branding. With in-house design, production, and nationwide installation capabilities, the business produces high-impact signage, banners, vehicle wraps, and branded environments. Over 60% of revenue is recurring, and the company is well-positioned to capitalize on upcoming global events in LA, including the 2026 World Cup and 2028 Olympics.

Why is this interesting?

• Long operating history with brand equity — 30+ years serving national clients across industries with highly visible deliverables.

• Diverse, recurring client base — No single customer accounts for more than 15% of revenue; 60%+ of revenue is recurring.

• Full-service operation — Design, fabrication, and installation under one roof; 23,500 sq ft seller-owned facility offered for lease.

• Strong revenue growth — Revenue has grown to $7.3M with solid 7-figure cash flow despite limited digital investment.

Deal summaries above are for informational purposes only. Detailed financials and confidential information are shared only with vetted buyers under an executed NDA.

🎥 Upcoming events

🗓️ Thursday, August 14
👤Hosts: Sam Domino and Marco White, Buy With Mainshares
🕛 12 PM CT / 1 PM ET
👉Register now

Thinking about owning a business but not sure where to start? Join the Buy With Mainshares team for an open office hour session where they’ll dive into how to actually find a business to buy. From sourcing deals to spotting red flags and building relationships with sellers, they’ll share real-world tactics and stories to help you get unstuck and start taking action. Bring your questions for this tactical, interactive session.

👉Register now

🔑 Top questions asked this week

Every week, we pull real questions straight from Mainshares Network, 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.

Should I rush to submit an LOI?

Q: From the #AskSMB channel

A: Michael (Mainshares Network Member)

Thomas, there is a lot of competition for good listings. Does your gut tell you this listing will attract a lot of attention?

Taking everything at face value and assuming you are being told the truth, it sounds like if you don’t put forth a letter you have a 0% chance at getting the business.

If you do submit a letter, you either don’t get the business or earn the right to enter DD and find out more. You can always exit the process post LOI or renegotiate based on what you find.

There’s no major downside to you submitting a letter even if there isn’t competition. Just like if there was competition, you can always exit the process post-LOI or renegotiate based on what you find.

How can I avoid wasting time on bad deals?

Q: From the Buy vs. Build webinar

A: Will Fry (Founder and CEO, Mainshares)

We hear this one all the time—and it came up again in our recent webinar:

“How do you avoid spending months chasing a deal, only to find major issues that kill it?”

Whether it’s messy financials, unrealistic seller expectations, or a last-minute cold feet situation, it’s frustrating—and expensive—to walk away late in the process.

Here are a few tips Will shared that offer a solid framework for approaching due diligence:

1. Red flags are inevitable, but wasting time on obvious ones is avoidable.
   Start by quickly qualifying three key areas:

• Financials: Do margins make sense? Is revenue consistent? Will it pencil with debt?

• Owner expectations: Are they realistic on price and working capital?

• Transition plan: Will key staff stay? Any hidden costs, like rent spikes if the seller owns the real estate?

2. Run a 2-week pre-diligence sprint.
   Before spending money on QoE or legal, dig into QuickBooks or financial records yourself. If they stall or push back, consider it a red flag.

3. Be upfront—but tactful.
   Build rapport while setting clear expectations. Sellers (and brokers) appreciate professionalism. Outline your process, stay transparent, but remember you’re negotiating.

4. Keep your pipeline warm.
   Don’t bet everything on one deal. Some sellers will ghost or back out late. Having multiple conversations ensures one flake doesn’t derail your entire search.

5. Optional but powerful: shadow someone.
   Spend a day with a recent buyer to get a feel for what operating a business actually looks like. It’s one of the fastest ways to figure out if this path is right for you.

Got a question? Submit your question in the community!

📑 More Resources

• Buy vs. Build: Should you buy or start a plumbing business? 👉 Read the article

• Industry Deep Dive: A Guide to Acquiring a General Auto Repair Business 👉 Read the report

• What investors look for in small business searchers 👉 Read the article

• How to Buy a Business for $1 👉 Read the article

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