📡 SMB Signal: Cash-flowing deals, SBA changes and operating a porta potty business

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

Here are the latest SMB investment opportunities we’re tracking—real businesses, solid returns, and experienced operators at the helm. 👉 Sign up on Mainshares to access live deal details.

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.

🎥 Upcoming events

🗓️ Thursday, May 8
🕛 12 PM CT / 1 PM ET
👉 Register now

The equity raise is one of the most critical—and misunderstood—parts of any SMB acquisition. From structuring investor terms to running an efficient raise, getting this part right can make or break your deal.

This high-impact session will cover both the foundations of effective equity raising and the latest SBA changes forcing sponsors to adapt in real time.

We’ll dig into:

• How to run an equity raise process—from early interest to final close

• Preferred equity structures, step-ups, and return profiles that attract investors

• The new SBA SOP changes and how they impact deal funding

• How today’s macro capital environment is changing investor expectations

🔑 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. What are some initial questions to ask a seller?

A: (From Sam Domino) Hey Kelvin, the biggest goal is to get an understanding of the underlying operations prior to asking for too much information. You want to feel confident in your ability to come in and operate, and if the particular industry is one that fits your box.

Some high-level questions are:

• What is a typical day-to-day for the owner? Their current responsibilities?

• How do they acquire customers?

• What are the services and what is the split across revenue?

• Why is the owner selling?

• What is the current team structure like? Who is responsible for what?

• What has profit/revenue been for the last few years (if the owner is willing to provide)?

You’ll probably need to get an NDA signed to access financial data. Once you have one completed, I would get documents along the following lines:

1. P&Ls and Balance Sheets for the last 3 years

2. Customer mix and concentration

3. Asset list

You will 100% need those financials in order to make a determination on an LOI.

2. Should I reach out to brokers for deal flow?

A: (From Will Fry) Normally, I suggest using it when you’re reaching out about a specific listing (e.g., inquire via website and send a direct email follow-up with your profile).

From experience, general buyer intros don’t always stick—brokers are often laser-focused on sourcing and closing deals with sellers, so broad outreach can get lost in the shuffle.

That said, if you have a well-defined buy box or sector focus, it can be worth reaching out proactively. A thoughtful profile that matches their pipeline might help them move a seller forward, which ultimately helps everyone win.

3. How do you teach employees good judgment?

A: (From Kevin Cutright) Great question—and it came up in our recent session with Kevin Cutright, Associate Dean for Character Development at West Point.

Kevin’s take? Most companies over-index on rules and rewards—but under-invest in judgment. If you want to foster better decision-making, you have to give people the tools and trust to think for themselves.

Here’s how to start:

1. Introduce “commander’s intent.” Borrowed from the military, this means clearly communicating why a decision matters, not just what to do. Your team should understand the desired outcome—so if the situation changes, they can adapt.

2. Share real-world trade-offs. When employees ask what to do, walk them through your own decision process. “Here’s what I considered. Here’s why I chose X over Y.” They’ll learn how you think, not just what you think.

3. Give reps, not just rules. The best way to teach judgment is to let people practice it. Start with low-stakes calls, and use each one as a learning moment. Ask: “What would you have done differently?”

4. Reward reflection, not just results. Don’t only celebrate the right outcomes. Celebrate when someone makes a thoughtful decision—even if it didn’t work out. Over time, this builds a culture of ownership.

🔁 ICYMI

• Accounting Firm Acquisitions: Opportunities and Considerations (Industry Analysis)
  

• Understanding Personal Guarantees in Business Lending (Article)

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