2024.11.09 - Online Biz Acquisition Opps

Hey hey peeps, happy Saturday.

This week my big focus has been on improving the ‘content marketing’ of the Accounting CPE business I own. I want not just ‘alright’ content that search engines pick up but truly GREAT content that a reader/viewer is like “damn that was good, gonna book mark it”. I’ve already got 2 CPAs writing blog posts, but their quality needs to be elevated, and I also need to get video content flowing out. I will likely be hiring a virtual assist with strong accounting experience to create video content, manage the written content, and also handle the ‘business administration’ which is really quite minimal.

That’s where I’m at. Here are the deals I’ve found (I’ll likely send out more later.

// High-Margin Underwater Breathing Brand | 3.7x Multiple

// Profitable Property Management SaaS | 5.4x Multiple

// Profitable Online Bicycle Shop with Drop Ship Model | 3.0x Multiple

🔫 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?

I like all of these businesses. A LOT.

The underwater breathing brand is a great product with high margins, and fair multiple.

The property management saas is, well sticky saas.

And then there’s the bike shop. Good margins for an ecom business, drop ship, still has a retail location (that could be closed according to listing). Aside from the fundamentals which are good, I’d go with this because of ‘buyer business fit’. My life revolves around mountain biking, and I spend egregious $$$ pursuing the passion each year. My own travel/riding content (which I already make) could synergize with the marketing for growth, and then I could also take substantial tax deductions for all the bike /travel stuff I do anyways. I’m getting the CIM on this one right now. Don’t bid me up lol.

// High-Margin Underwater Breathing Brand | 3.7x Multiple

💰 Asking Price: $4,900,000
📊 Gross Revenue: $2,660,000
💼 Cash Flow: $1,330,389
📅 Established: 2019

Overview:
This popular underwater breathing brand is known for its captivating social media presence, driven by stunning user-generated content (UGC) from scenic underwater locations. With a remarkable 50% EBITDA margin, the brand boasts strong profitability, and its products are manufactured exclusively for them, though it’s uncertain if they hold patents. The high average order value (AOV) reinforces its premium position, but questions around product liability remain essential considerations.

Highlights:

• Engaging UGC & Social Media: Leveraging breathtaking underwater content, ideal for sustained social engagement.

• High Profit Margins: 50% EBITDA, rare among physical product brands.

• Exclusive Manufacturing: Products are custom-made, though patent status is unclear.

• Premium Market Position: High AOV signals strong brand appeal among adventure enthusiasts.

Questions:
❓ Are products patented, and how does this impact market defensibility?
❓ What are the liability considerations associated with product usage?
❓ Could expanded social media engagement drive global market penetration?

View Listing

// Profitable Property Management SaaS | 5.4x Multiple

💰 Asking Price: $2,350,000
📊 Gross Revenue: $543,313
💼 Cash Flow: $437,246
📅 Established: 2010

Overview:
This established property management SaaS offers high margins and provides valuable integrations with major travel sites like Airbnb, Vrbo, and Google Travel. With over 80% EBITDA, the business is highly profitable, but the valuation may seem steep unless the software is up-to-date. Operated by two active owners, this setup could pose challenges for a buyer who may need to find replacements for both roles. Earnings adjustments can sometimes underestimate replacement costs, which adds to the consideration for a potential buyer.

Highlights:

• High EBITDA Margins: Above 80%, showcasing strong profitability for a SaaS.

• Key Integrations: Connects directly with large booking platforms, supporting valuable client relationships.

• Growth Opportunities: Potential to expand into new vacation rental segments (e.g., mountain cabins) or scale with a dedicated sales team.

• Remote Operations: Minimal overhead, with current owners working from home.

Questions:
❓ Is the software fully current, and how often are updates or new features rolled out?
❓ What would be the realistic cost of hiring replacements for both owners, given their involvement?
❓ Are there untapped markets or travel segments where this software could add significant value?

View Listing

// Online Bicycle Shop with Drop Ship Model | 3.0x Multiple

💰 Asking Price: $800,000
📊 Gross Revenue: $984,922
💼 Cash Flow: $263,415
📅 Established: 2011

Overview:
This established eCommerce bicycle brand has sustained above-average margins (25%+) for over a decade, a rare feat in the drop shipping space. 100% of products can be drop-shipped from U.S.-based suppliers, allowing for low overhead while maintaining a $200 average order value (AOV). The business has a 60% repeat customer rate, supported by a 20,000+ email list and a solid social media presence. With a physical retail location, there’s potential for a full transition to drop shipping if industry requirements permit. This setup could appeal to buyers with a strong grasp of eCommerce or drop shipping.

Highlights:

• Sustained High Margins: Over 25% margin in a drop shipping model, sustained for 13 years.

• Versatile Sales Channels: Sells through eBay, Facebook Marketplace, a branded website, and a retail location.

• Engaged Customer Base: 50,000+ followers across social platforms and a high repeat customer rate.

• Efficient Operations: 100% of online products are eligible for drop shipping from 20+ U.S. suppliers.

Questions:
❓ Is the physical retail location required by suppliers, or could this become a fully remote operation?
❓ What factors have contributed to maintaining high margins, and can they be sustained long-term?

View Listing

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