Mainshares

Meet Kenneth Allen—the proud owner of Allen Barn, a wedding and special event venue in Fort Meade, Florida, now officially certified by Mainshares as a locally owned and operated business! By booking with Allen Barn, you’re not just getting a beautiful venue—you’re also strengthening your community and keeping hard-earned dollars local. Why local matters: 🤝 94% of customers prefer buying from a locally owned business 🔎 96% pay attention to whether a business is locally owned and operated 💡 78% say local ownership impacts their purchasing decisions Join us in celebrating Kenneth’s milestone. If you're a locally owned and operated business, let your community know by getting certified here 👉 https://lnkd.in/eEKn27s9

Members of our first FORGE cohort joined us at HQ in Austin, TX last week for three days of intensive learning, relationship building, and in-field experiences. FORGE members arrived with the grit and determination we seek in aspiring business owners and left ready to embark on their FORGE journey of navigating the challenges of acquisition and business ownership. Throughout the program, we'll be by their side, dissecting complex topics with experts, and supporting members through their candid search experience.

Latest Dividend edition just dropped 🔥 What's inside: - An operator's guide to financing their small business acquisition - Mainshares' and Search Fund Ventures Self-Funded Search Investing Report - Operator spotlights, new investment opportunities, and more! Read it here 👉 https://lnkd.in/eQ_W49bi

Andrew Finn is an experienced owner-operator, and co-founder at G64 Ventures. With a successful exit under his belt as an owner, and now a partner with the many independent sponsors and self-funded searchers he works with, Andrew has learned some of the do's and don'ts for investors in the SMB asset class. We asked Andrew the advice he would give himself as a new investor in the space. This is what he said 👇 - Write a smaller number of larger checks - Don't bet on explosive growth - Ask yourself, "Would I be happy as the operator of this business?" Listen to Andrew explain these pieces of advice 👇

We're thrilled to partner with Mainshares on the Self-funded Search Investing Report, designed to help investors and operators understand the self-funded search asset class by providing insights on market trends and deal structures. Here's why self-funded search matters: - With an estimated $7.4 trillion in small business assets held by Baby Boomers and another $6.8 trillion by Gen X, there is a consistent need for ambitious operators ready to guide the next generation of America’s small businesses. - The self-funded search model empowers motivated entrepreneurs to acquire established, cash-flowing businesses, while providing an opportunity for investors to support small business growth and potentially generate attractive returns. The report is broken into three main sections: 1) Overview and background on the self-funded search asset class 2) Summary of the self-funded search acquisition process 3) Key terms and concepts investors and operators should understand You can view and download the full report by following the link in the comments!

We’re excited to announce the release of the Self-Funded Search Investing Report in collaboration with Search Fund Ventures. Key highlights from the report 1. Market Overview and Growth: - The self-funded search model has seen substantial traction, fueled by SBA 7(a) loan programs that allow up to 90% loan-to-value (LTV). - This space reflects a compelling investment alternative to venture capital, which has experienced large swings in annual deal volume, while small business acquisitions remained steady at $38 billion in deal volume in 2024. 2. Investment Returns: - Historically, self-funded searches have offered impressive returns, with ~30% average IRRs—on par with traditional search funds. - Investors benefit from equity "step-ups," where they gain a larger share of the company’s equity as a multiple of their contributed capital (ie, “2x step-up). 3. Acquisition Targets: - Most targets have enterprise values between $4M and $12M and EBITDA ranges between $1M and $4M, providing a sweet spot for small-scale acquisitions. - Top industries include home services, B2B services, and manufacturing, with value-creation strategies centered on operational improvements and growth. 4. Investor Terms: - Preferred dividends range from 10% to 12%, offering attractive cash flow potential. - Investors typically account for 10%–30% of total capital, while searchers contribute less than 2% of equity. View our overview of the report and download the full version at the link in the comments 👇

🚨 We're launching the official Operator Network community today. What is the Operator Network? The Mainshares Operator Network (ON) is a community of aspiring and current owner-operators with the American grit to navigate the highs and lows of ownership and keep small businesses in the hands of local communities. What do operators receive as members of the community? - SMB 101 Modules: Learn critical skills to prepare for your ownership journey. Live workshops and office hours: Ask your specific questions to Operator Network (ON) Advisors and SMB experts. - Connect with Operators: Meet serious operators and experienced SMB owners. Best practices and accountability is what will ensure you put your best food forward. - Access to investors: ON members can leverage Mainshares’ pool of SMB-focused investors for acquisition opportunities. - Deal Matching: Get access to deal flow and get matched to businesses through our relationships with current owners and brokers. ⚡️ Founding members of the Operator Network will receive 50% off their membership rate. ⚡️ Members who apply for the Operator Network are granted a two-week free trial of the membership community. Application link is in the comments 👇

Travis McAshan is the Founder and CEO of GLIDE®, Austin-based B Corp web design and development agency. We recently caught up with Travis to ask him questions about his experience as an operator over the past twenty years, including what most people misunderstand about the lure of entrepreneurship and why empowering others to take ownership is the only way to build a successful business. Hear what he had to say 👇

Independent sponsor vs self-funded search: which path is right for you? If you're considering entrepreneurship through acquisition, there are two common paths today: 1️⃣ Independent Sponsor ◦ Operator's Role: Focused on sourcing deals and managing investor relationships, often hiring a management team to run the business. ◦ Deal Economics: Sponsors share significant equity with investors, but can earn upside through deal fees and carried interest. ◦ Capital Relationships: Sponsored deals are typically larger, relying heavily on building strong networks with investors to fund acquisitions. 2️⃣ Self-Funded Search ◦ Operator's Role: You’re fully hands-on, often stepping in as the CEO to lead the business post-acquisition. ◦Deal Economics: Searchers are required to personally-guarantee SBA debt, but are able to retain most or all of the equity. ◦Capital Relationships: Deal sizes are smaller, and searchers will use a combination of SBA debt and preferred equity from investors for the acquisition. "Independent sponsors are basically deal-sourcers. They help finance a transaction and then serve in an advisory-like role versus a buyer running a self-funded search. The self-funded searchers are boots on the ground. They are going to be hands-on operators of these businesses." - Mainshares' Head of Capital Markets, Judd Goodrich. Both paths offer acquisition entrepreneurs a unique opportunity to lead Main Street businesses as the next generation of owners. Get the full breakdown at the link in the comments 🔗

Ready to roll up your sleeves and make your acquisition dreams a reality? Mainshares' Operator Network team has been supporting acquisition entrepreneurs just like yourself through the complexities of buying a business for several months now. Next week, our team is excited to launch our official membership community for serious operators. On January 20th, the Operator Network (ON) officially launches—a community built for those who don’t just dream of ownership but are committed to doing the hard work it takes to get there. We know entrepreneurship takes grit, resilience, and a willingness to navigate the highs and lows of challenges you'll face. That’s why we’ve created a community of doers—a place where like-minded operators can share insights, learn, and grow together. Here’s what you’ll get as an ON member: 🔗 Community: - Join a network of serious operators navigating the challenges of acquisition and ownership together. - Access ON, our mobile app for real-time chats, workshops, and community focused on all things SMB and ETA. - Participate in exclusive live workshops, office hours, and member-only events tailored to SMB ownership. 💰 Capital: - Tap into Mainshares’ pool of SMB-focused investors to unlock acquisition opportunities. - Connect directly with experienced investors and gain insights from our team, which vets thousands of deals annually. - Use our platform for post-acquisition investor communication and quarterly distributions. 📚 SMB Expertise: - Leverage advice from SMB Advisors with decades of operating experience. - Master the toughest SMB topics, from deal sourcing to investor pitching to leadership transitions. - Save time with referrals to top-tier pros (CPA, IT, marketing firms) and software tools. The Operator Network is not for everyone 🚫 ON is built for operators who embody hard work, thoughtfulness, and grit. If this is you, apply today to secure your spot as a founding member. 🚀 Founding members will receive 50% off their membership. Two-week free trials are provided for any operator who signs up for the January 20th launch. It’s time to stop talking about owning and start doing. Are you in? #EntrepreneurshipThroughAcquisition #SMBOwnership #HardWork #Grit