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- 2024.11.16 - Online Biz Acquisition Opps
2024.11.16 - Online Biz Acquisition Opps
30 year old Porsche parts ecom? I'm writing the check!
Happy Saturday morning peeps!
In general āonline businessā insight, besides working on Schema this last week I also hired a part time virtual assistant for the accounting CPE business. His primary tasks will be creating video and written content for the business, along with handling basic support. Weāll be starting there but I am optimistic that he could instruct/host courses. Heās from the Philippines, hold a CPA and CMA credential, and has substantial experience in the professional finance/accounting world and his English is good enough that you would have no idea heās not from the United States. Cost: $20/hr. Thatās very high for Philippines standards, but he is damn good. Excited about that hire.
And these businesses!
š« Gun to my head question:
// Tennis Training eCommerce Business | 3.5x Multiple
// Porsche Parts Manufacturing Business | 3.5x Multiple
// Car Monitoring App with $98K MRR | 3.2x Multiple
If I had to write a check for one of the businesses in this email, with no other details which one would it be?
The car monitoring App is interesting. Very interesting but the lifetime value of itās customer acquisition model has played out yet. Tennis training ecom seems great, but absent a few details in listing. Porsche parts, is 30 years old with no marketing and doing high marginsā¦ Iām loving it.
On that note; which one would you take?
// Tennis Training eCommerce Business | 3.5x Multiple
š° Asking Price: $2,995,000 + Inventory
š Gross Revenue: $1,429,096
š¼ SDE: $845,445 (59% Margin)
š
Business Start Date: [Not Specified]
My Quick Take:
This proprietary tennis training brand boasts an impressive 59% SDE margin, extremely high for an eCommerce business, and shows consistent 21% YoY growth. Operating in the evergreen tennis market, the brand holds a unique position with products trusted by professional players and featured in major publications like Forbes. Remarkably, they have achieved these results without any paid advertising, relying on strong organic website traffic and a robust social media following (1 million on Instagram). However, critical details such as the start date and inventory requirements are missing from the listing, and it would be wise to clarify these, along with the order fulfillment process, before proceeding.
// Porsche Parts Manufacturing Business | 3.5x Multiple
š° Asking Price: $1,095,000 + Inventory
š Gross Revenue: $602,756
š¼ Cash Flow: $312,674 (55-65% Margin)
š
Established: 30 Years Ago
My Quick Take:
This established Porsche parts business, operating for 30 years, serves a niche yet durable market with a high average order value and impressive 70% repeat customer rate. With organic sales and no paid advertising, it maintains a 55-65% margināa strong performance for an eCommerce business. This niche could likely fly under the radar of major automotive retailers, providing an opportunity for a dedicated operator. However, itās important to assess the fulfillment process, inventory requirements, and any specialized Porsche restoration knowledge needed to operate or expand the business effectively.
// Car Monitoring App with $98K MRR | 3.2x Multiple
š° Asking Price: $1,900,000
š Revenue: $1,027,564 (annualized from recent three-month average)
š¼ Profit: $603,159
š
Established: May 2022
My Quick Take:
This car monitoring app shows high monthly recurring revenue (MRR) of $98K and strong profitability with a 59% margin. However, the valuation is based on annualizing the last three months, a practice that requires caution. Prospective buyers should carefully assess the stability of this recent performance, as it's possible the business relied on significant ad spend and customer acquisition efforts based on estimated customer lifetime value (LTV). With a 60% organic acquisition rate and reliance on Apple Search Ads for the remaining 40%, this app is a strong performer but may benefit from thorough due diligence on customer retention and advertising ROI.
Interesting but not for meā¦
These deals looked good at a glance, but there was something I didnāt like. Still may be a good find for others. āāā
Career Change Training Programs. $1M SDE, Asking $3.5M. 3.5x Multiple
Impressive $1M profit in under a year. However, the business focuses on wellness, coaching, and esotericism trainingāa space prone to fleeting trends, which raises concerns about long-term stability.
SEO Landing Page Generator Plugin. $55K SDE, Asking $202K. 3.7x Multiple
My issue with this one is that I donāt ābelieveā in what the product does. It creates a bunch of low-quality pages to capture traffic for terms like āplumber + city.ā I think Google is already effective at filtering out this type of content, but thereās still a market of folks chasing a mystical pot of gold.
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