2024.01.04 - Online Biz Acquisition Opps

Happy Saturday peeps!

No podcast yet. I’m too busy working on accounting CPE stuff. One of the big things on the upcoming agenda is cold email outreach to sell course membership to accounting firms and finance departments.

Here’s the deals I’ve for today:

1/ Automotive Ceramic Coating Brand - $150K SDE - 2x

2/ Language Interpretation & Translation Service - $550K SDE - 2.7x

🔫 Gun to my head question:

If I had to write a check for one of the businesses in this email, with no other details which one would it be?

Read this carefully… the Automotive Ceramic Coating brand seems like a business that would be ‘great to own, but not to buy’. It’s making easy money for someone, but I feel like their is some platform risk, and could be increased competition as I’m sure someone could private label and compete in this market easily. That said… it has been working for 8 years.

The Language Interpretation & Translation business on the other hand has carved itself into a market that seems hard to crack, and is embedded in high value / stakes activities. 12 years year old, 550k of SDE, and operating remote; there’s a lot to like here.

1/ Automotive Ceramic Coating Brand - $150K SDE - 2x

Overview:
This 8-year-old e-commerce brand specializes in premium automotive ceramic coating products, generating $257,666 in revenue and $150,248 in seller discretionary earnings (SDE) over the last 12 months. With a 58% profit margin and small, easy-to-ship products, this business is positioned as a trusted name in the automotive detailing industry.

The brand operates through Amazon and Shopify, leveraging optimized listings and excellent customer reviews to drive consistent sales. Fulfillment is currently managed by the seller, but transitioning to a third-party logistics (3PL) provider could streamline operations, making this business more scalable. The seller, ready to focus on new ventures, offers three months of training and ongoing support to ensure a smooth handover.

Corey's Take:
This opportunity stands out for its healthy 58% margins and simple logistics, with products that are lightweight and easy to ship. Priced at a 2x multiple ($300,000), it’s a compelling valuation for an established 8-year-old business in a growing niche.

That said, the revenue split between Amazon and Shopify needs closer examination. If nearly all sales are from Amazon, the bear case is a potential decline in Amazon sales, whether due to increased competition or platform changes.

On the flip side, the bull case is the potential to profitably run ads on other platforms like Google or Facebook, given the strong margins. This could drive growth on Shopify and diversify revenue streams, reducing reliance on Amazon. Expanding into additional e-commerce platforms or new product lines could further boost sales.

View Listing

2/ Language Interpretation & Translation Service - $550K SDE - 2.7x

Overview:
This 12-year-old professional service business specializes in high-stakes translation and interpretation across 200 languages, generating $1 million in annual revenue and $550,000 in seller discretionary earnings (SDE). With over 75% of revenue coming from recurring clients, including government agencies, NGOs, and businesses, this company has carved out a trusted niche where accountability and precision are paramount.

Operating virtually, the business employs a lean team of six (four full-time contractors and two part-time employees), providing flexibility to relocate operations anywhere. The seller offers a robust database of vetted contractors worldwide, ensuring scalability and reliability. The firm supports live and virtual events, multilingual conferences, and critical negotiations, offering a service that AI solutions can’t match in high-stakes environments.

Corey's Take:
This isn’t your typical online business. With over 50% margins and a unique focus on precision in high-stakes transactions, it avoids competing directly with AI-driven translation tools by offering a premium, accountability-focused service. That niche differentiator makes this business highly defensible and valuable in a growing market.

The virtual structure and established team make it operationally flexible, while the seller’s database of contractors offers a significant resource for scaling. With 75% recurring revenue and long-term agreements, including with government entities, this is a stable acquisition with predictable cash flow.

The growth opportunities lie in expanding direct sales to new industries, leveraging existing expertise for broader applications, or exploring additional service offerings. Given the $1.495M asking price (2.7x SDE), this is a solid opportunity for a buyer seeking to invest in a high-margin, scalable business that thrives where automation falls short.

View Listing