This was a GREAT week for online businesses hitting the market.

Personally I am currently hanging out in Queenstown New Zealand, where I’ll be for the next month enjoying the mountain biking. My Airbnb house is up on a cliff overlooking a lake with mountains, it is a really KILLER view you can see on my Instagram where I am typing this email from (this is my personal profile, as someone self-employed for 15 years I do not do Linkedin stuff). I am continuing to work on transitioning my lead gen brands to a pay-per-call model... And grow this newsletter while shopping for acquisitions!

Let’s jump into the deals!

Drop Shipping Branded Drones At a 2.41 Multiple

• 💰 Asking Price: $500,000

• 💼 EBITDA: $207,327

• 📊 Revenue: $871,669

• 📅 Established: 2019

This business sells branded 'professionals' drones which are delivered from the supplier in 5-8 days. The listing is sparse on details but the numbers look good. Established for 4-5 years, 23.7% margin and carved out niche (implied by 'professional').

I'd be curious to know niche of market they're targeting. The drone space is notoriously competitive, with big marketing budgets, and fast moving innovation, but they could've carved themselves into a market that is not served by the mainstream drone companies. They're doing something right with this cashflow!

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952k/yr Proprietary Wiring & Parts For RVs / Trailers

• 💰 Asking Price: $3,800,000

• 💼 EBITDA: $952,390

• 📊 Revenue: $6,773,315

• 📅 Established: 2008

I love the market this business is in because it will never become overrun with internet marketers trying to sell the same products. Selling specific wiring and parts would be tricky for anyone to source and then put in the learning/time to compile and ecommerce site. I'd never venture down that road, but buying it -- well I'd like to, hence this listing in my email.

Aside from the market there's a lot to like about this business. Proprietary products. 14% margins (decent). 952k cashflow. Wide array of sales channels. 14 years in business.

Inventory/fulfillment isn't mentioned in the listing, but the listing give as a 'NA'. With a business of this size it is reasonable to assume some kind of inventory will be held somewhere though.

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Agriculture… SAAS Or Community

• 💰 Asking Price: $2,800,000

• 💼 EBITDA: $646,304

• 📊 Revenue: $1,728,468

• 📅 Established: 2019

A thriving SaaS agriculture platform that goes beyond profits, championing self-sufficiency since its inception in 2019. Offering a blend of educational courses, networking opportunities, and essential supplies, this platform has carved a niche in empowering individuals to embrace sustainable living. With two subscription models boasting an impressive 95% retention rate and a substantial email subscriber base of over 159,000, the business stands as a testament to its enduring appeal.

Supported by an efficient operational model that requires only 15-20 hours weekly from its owners and a dedicated team of four contractors, the platform is primed for continued growth. Positioned to tap into the burgeoning market for off-grid living, it promises not just financial returns, but also a chance to make a meaningful impact. With lucrative margins of 37% and minimal variable costs, this venture offers investors an enticing opportunity to be part of a community-driven movement towards sustainability.

At 4x valuation it’s fairly price for an engaged community. Recall we seen a similar community style platform in a recent week ‘Community App That Solves Pain Point’ which was hardly 2 years old asking 4.6x.

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Gardening Content Site Thriving Amongst The Google Slaughter

• 💰 Asking Price: $130,807

• 💼 EBITDA: $41,304

• 📅 Established: 2016

This is essentially a blog. I love to own content websites (blog), but I don't like the thought of buying them as they are so susceptible to platform risk (google search algorithm changes). This one however has been around for 8 years and has a strong traffic/revenue has growth trend through the last 2 years when Google has been whacking content sites down hard.

Given concerns regarding platform risks inherent in content sites, coupled with the perceived valuation being on the higher end, strategic recalibration may be prudent. Additionally, maximizing the underutilized email list for direct affiliate revenue could be a focal point for future growth and revenue diversification.

At 38x monthly multiple the price seems a little steep. If negotiating the price down below 30x (in my opinion) this could be a worthy acquisition for someone established in the content/affiliate marketing space or gardening industry.

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24 Year Old Freight Brokerage

• 💰 Asking Price: $350,000

• 💼 EBITDA: $194,546

• 📊 Revenue: $1,649,000

• 📅 Established: 1998

This is a business that fundamentally is not an ‘online business’ but rather a virtual service — a brokerage. The owner could be anywhere in the world.

I recently ran across one of these doing $47 million per year in revenue with just a small team. This one is much small however, and priced accordingly. At 194k in cashflow and 350k asking price you’re paying less than 2x for an aged book of business. The seller is retiring, but for continued success of the business you would certainly want to know what the sellers relationship is with the clients… will they leave when the seller is gone? As the seller has been in business for a while and is retiring I’m optimistic (I wouldn’t be optimistic with a 5 year old business selling for ‘retirement’.

If I acquired the business I would look to have remote virtual assistant run the business, and figure out how I could leverage the value of the 24 year old MC#. And of course, crank lead gen ads because that’s my forte.

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