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- 2024.11.25 - Online Biz Acquisition Opps
2024.11.25 - Online Biz Acquisition Opps
Industrial Products Dropship $211,694 SDE for 1.7X -- is there a catch?
Hey hey peeps and happy Monday. In this roundup, we’ve got a few small physical product ecommerce businesses. There are some larger businesses that came up for sale that caught my interest over the last week, so I’ll probably send another email out tomorrow with them.
In my personal online business world… well there was a major step forward with the accounting CPE business. I’ve begun running paid ads for it. I elaborate on it more and why I would only acquire a business that can operate sustainably with paid customer acquisition in a separate post here.
🔫 Gun to my head question:
// Silicone Rings Ecommerce - $113,989 SDE - 4X
// 13-Year-Old Industrial Product Ecommerce - $211,694 SDE - 1.7X
// Shark Tank Backpack Brand - $17,712 SDE - 2.54X
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’d go with the industrial product ecommerce brand. It’s 13 years old with solid margins, and drop ship. The 13 year brand value might have some untapped value and the margin could sustain paid customer acquisition. I can only wonder though, why the low multiple? In other words what is wrong with it?
// Silicone Rings Ecommerce - $113,989 SDE - 4X
This home-based e-commerce focuses on customizable silicone wedding rings for active lifestyles. Products like this, that are easy to ship, and unbreakable, fit the optimal bill of ecom. With a 30% profit margin and evergreen product appeal, it has maintained consistent growth since 2016. The asking price is on the higher side at 4X cash flow ($465,000), but as you know everything is negotiable.
// 13-Year-Old Industrial Product Ecommerce - $211,694 SDE - 1.7X
This 13+ year-old DIY e-commerce business focuses on USA-made, private-labeled industrial products, all drop-shipped— rare for these time tested margins. With $211,694 SDE and a price tag of $355,000, the multiple is shockingly low for for a proven business with significant growth opportunities.
Recently approved to sell on Amazon and Walmart, the business has yet to demonstrate substantial growth on these platforms, presenting a potential upside for a new owner. The long-standing profitability, strong customer loyalty, and highly ranked digital presence offer a solid foundation. Investigating alternative suppliers and optimizing Amazon/Walmart strategies could unlock easy wins
This Shark Tank-featured Shopify brand specializes in travel backpacks and boasts an impressive 47% repeat customer rate, with many buyers returning up to 30 times. Operating with a 3PL in place and strong product reviews (2,500+ five-star ratings), the business offers streamlined operations and untapped growth opportunities.
Despite its appeal, the business has seen minimal marketing efforts over 11 years—only $25K spent—suggesting easy wins with the right advertising strategy. Manufacturing costs have been reduced by 50% through a new partnership, enhancing margins. The owner has shifted focus to real estate, which to me reads like easy wins as the business was neglected and not owned by a season ‘internet business person’
The asking price of $45,000 (plus inventory) makes this a low-risk entry into a proven brand with loyal customers and high margins.
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