How Mario bought a $1.8M Texas party store for $25K out of pocket

Happy Monday, friends!

Today you're going to hear a story about Mario.

He was a 12-year veteran of the CPG industry, still working his W2 in Dallas, who had never heard of a "homecoming mom" before finding one for sale. Six months after getting serious about his search, he closed on a niche Texas craft and party supply store for $1.8M — putting just $25K of his own money on the table.

Before sharing Mario’s case study, here’s a success story from our Acquisition Ace community.

Kristie was a full-time photographer who didn't want to spend another 13 years building a second business from scratch.

So she bought a drop-in daycare with two locations for $485K using a HELOC, putting just $35K out of pocket.

The business was doing $225K in verifiable cash flow with a team already in place, and she kept her photography business running while the daycare operates with minimal involvement from her.

She’s now making over $100K annually from the daycare while working just a few hours per week, and didn’t have to start from zero.

👉 Ready to get the roadmap to buying your first cash-flowing business? Book a call with our team here.

Before the deal

Mario had been following my content for about two years before joining Acquisition Ace in July 2024 as a birthday present to himself.

His schedule made attending live calls nearly impossible, so he did things differently - listening to call recordings at the gym, on drives, and during a 19-hour road trip from Dallas to Southern California with his family half-asleep in the car.

By October, he was sending LOIs.

Finding the deal

The listing was for a homecoming mom store - a Texas-specific niche Mario had never encountered.

A homecoming mom is an elaborate corsage-like accessory worn by high school students at homecoming, and it’s a multi-million dollar industry unique to Texas.

The seller was 82 years old, deeply passionate about her team, and ready to retire.

The business was seasonal - roughly 90% of revenue came in during a four-month homecoming window from August through October.

Mario saw the antiquated systems, the loyal customer base, and his own retail background, and knew he could make it better.

The coaches reviewed it and gave him the green light.

(Inside Acquisition Ace, members get their deals reviewed by experienced coaches before submitting an LOI, so they never go into a deal blind. To see how Acquisition Ace could help you land your first business deal, book a call with our team here.)

The deal breakdown

Original asking price: ~$2M (included real estate)

Final purchase price: $1.8M

SDE: ~$300K annually

Seller note: $675K, 3-year full standby, balloon payment

SBA loan: Remainder on a 25-year term

Mario’s personal cash out of pocket: ~$25K

Projected year-one cash flow after debt service: $150-200K in distributions, plus $16K combined salary for Mario and his wife

Cash-on-cash return: Approximately 10x in year one

The deal nearly fell apart at the last minute when the seller got cold feet and pulled out.

Mario thanked the broker, asked if he could personally thank the seller, and took the high road.

The next morning, the broker called back - the seller wanted to talk again, and after they talked, they made a deal.

What he’s doing now

Mario is still working his W2 while spending about 15-20 hours a week on the business, including Saturdays on the floor.

In his first homecoming season, Mario is tracking approximately 40% above what the previous owner generated.

He’s built a social media presence from scratch: 4,300 Instagram followers and 2,400 on TikTok, starting from zero, and the store has been mentioned in the local newspaper twice.

With Party City out of business, he’s also expanding the balloon and party supply section to diversify revenue beyond the homecoming season, and he’s already in conversations about a second acquisition.

The key lesson

“Taking the risk was worth it. It’s paying off in multiples every single day.”

Mario had no acquisition experience and couldn’t make a single live call…

But he made it work through recordings, responsive coaches, and the willingness to stay patient when the deal almost died on the one-yard line.

Ready to find and close your first acquisition?

Join the Acquisition Ace community with 2,000+ members who are learning to find, finance, and close deals just like Mark.

👉 Book a call with our team here to see if it's a good fit