2024.10.27 - Online Biz Acquisition Opps

Happy Sunday evening peeps. I’ve spend most of the day reviewing deals.

Tomorrow it’ll be back to trying to hire a development team for my lead gen business. The high level lead gen industry has upcoming compliance regulations for Jan 1 and the tech implementations required for compliance are… well very technical. 3 good developers that have taken a look at it, ghosted. Making matters worse is my lack of technical skills to communicate it.

🔫 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?

// Ebook Subscription Membership Program | 3.8x Multiple

// Premier MGMT/IT Training Institute Brand | 5.6x Multiple

// Women’s 50+ Homegoods & Membership Marketplace | 3.0x Multiple

… The MGMT/IT Training business is over priced and non-us domiciled, so that’s an easy out. The Women’s 50+ Homegoods & Membership is at an attractive multiple and the marketplace element is nice, but it still has physical products to get to customers and it’s only 2 years old. The Ebook Subscription Membership Program has recurring revenue, fully digital product and 4 years in business. I’m going with that.

Here are the deal deets for these 3, and 2 more at the bottom that were interesting but not for me.

// Ebook Subscription Membership Program | 3.8x Multiple

💰 Asking Price: $1,500,000
📊 Gross Revenue: $1,027,113
💼 Cash Flow: $396,308
📅 Established: 2020

Overview:

This high-margin digital product business offers personal development eBooks with over 5,000 active monthly subscribers. It features a streamlined system for publishing 50 new eBooks each month and operates with minimal owner involvement—about one hour per week. Marketing and content creation are outsourced, allowing for hands-off management. Despite the low owner workload, the reason for selling remains unclear.

Highlights:

• High-Margin Digital Product: Net margins of 35% due to the low cost of producing and delivering eBooks.

• Strong Subscriber Base: 5,000+ active subscriptions and a 55% conversion rate to membership.

• Efficient Content System: A well-oiled process for publishing 50 new eBooks per month.

• Outsourced Marketing: Media buying and content creation are outsourced, minimizing owner involvement.

• Potential for Growth: Sellers estimate the business could double within 6-12 months with the right strategy.

Questions:

❓ Why are the owners selling if the business is so streamlined, with minimal involvement required?
❓ Are there other revenue streams the new owner could explore to further capitalize on the existing subscriber base?
❓ What roles do the current contractors play, and how would their responsibilities be transitioned to a new owner?

View Listing

Premier MGMT/IT Training Institute Brand | 5.6x Multiple

💰 Asking Price: $2,605,000
📊 Gross Revenue: $493,524
💼 Cash Flow: $467,854
📅 Established: 2009

Overview:

This digital product business specializes in offering accredited professional certification courses across various industries, including project management, business, and IT. With over 125 certifications and a network of 40 accredited training and testing organizations, it provides a scalable opportunity to further monetize its customer base. The courses are entirely online, and the business has a strong global presence, though it operates outside of the U.S., which may raise concerns for some buyers. Despite its lean operations, the valuation seems high, and it lacks the security of recurring revenue, which would provide more confidence in the long-term stability of the business.

Highlights:

• High-Margin Digital Product: Offers over 125 globally recognized certifications.

• Accredited Network: Monetizes through partnerships with 40 accredited training and testing organizations worldwide.

• Lean Operations: Managed by a small team of two, allowing for low overhead and scalability.

• Global Reach: Serves over 17,000 candidates worldwide, trusted by multinational corporations, government, and military sectors.

• Organic Growth: Driven by strong brand reputation and partnerships, with no reliance on paid advertising.

Questions:

❓ How reliable is the certification renewal process, and does it contribute significantly to cash flow?
❓ Given its non-U.S. domicile, how does the business protect against risks associated with international legal enforcement?
❓ Why has the owner chosen to sell, especially if the business requires minimal operational involvement?

View Listing

eCommerce Brand & Membership Marketplace | 3.0x Multiple

💰 Asking Price: $5,500,000
📊 Gross Revenue: $8,985,296
💼 Cash Flow: $1,855,116
📅 Established: 2022

Overview:

This eCommerce marketplace offers home goods, gadgets, and electronics, with 30% of sales generated through a membership program that mimics Amazon Prime. The business stands out due to its effective product curation for women aged 50+ and a unique supplier arrangement where the supplier handles listing, storage, and fulfillment. While marketing efforts have increased Lifetime Customer Value from $40 to $100, any growth plans would need to build on this already well-optimized setup.

Highlights:

• Membership-Driven Sales: 30% of revenue comes from a membership program that offers discounts, boosting recurring revenue.

• Effective Product Curation: Tailored product selections appeal to a well-defined customer base, strengthening customer loyalty.

• Unique Supplier Relationship: The supplier stores, lists, and fulfills orders, simplifying operations.

• Proven Marketing Success: Increase in LTV to $100 from strategic upsells and campaigns.

Questions:

❓ Who is the primary supplier, and are there viable alternatives to mitigate risk?
❓ Do buyers or sellers pay for the membership, and could this program be expanded further?
❓ What growth strategies has the current owner already attempted, and what failed?
❓ Could additional sales channels (e.g., Amazon, eBay) provide significant untapped potential?

View Listing

Interesting but not for me

…

// SaaS Tech Company | AI Machine Learning (ML) Verticals | 90% Retention

I don’t like this one because the AI space is changing/rapidly. The listing even talks about new tech they’ll have ready in 6 months. I’d rather pursue stable and time tested models where I don’t have to jump into change.

View Listing

// 11 Year Old Leading Travel Blog | $1.3M SDE

Blogs are great businesses to own, but not acquire. The thing is the business is completely dependany on Google traffic — which is dangerous. One refresh of the Google also and revenue can disappear. I’ve seen it happen many times over the years. Even sites that create premium content can get whacked to nearly zero.

View Listing