2024.12.10 - Online Biz Acquisition Opps

Hey hey peeps happy Tuesday afternoon!

We’ve got 4 businesses today.

// Crypto Trading Software Business - $2.38M SDE - 2.9X

// Automotive Supply E-Commerce - $177K SDE - 2.7x

// Email Forwarding SaaS - $215K SDE - 5.56x

// Online English Tutoring - $125K SDE - 3x

🔫 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’d roll the dice with the crypto trading SaaS. It’s been very successful in a market with a lot of room to grow, has infinite scale (no capx really to scale software) and listed at a very fair valuation. Why am I calling it a dice roll? I think the list price is a very low multiple — why hasn’t anyone in the financial services industry scooped this up? The other thing is that the financial performance must be as volatile as crypto itself. It seems like they mitigate that with a subscription model indicated by the word ‘recurring’ but still it has to boom and bust with crypto. Which makes it even more interesting they’re advertising it as SBA Eligible.

….

// Crypto Trading Software Business - $2.38M SDE - 2.9X

With $2.38M in SDE and 72.89% year-over-year revenue growth, this trading software business is a dream for crypto bulls. The rapid growth, fueled by a premium-tier product launch and rising monthly recurring revenue, makes the 2.9X multiple stand out. Typically, such explosive growth isn’t sustainable, but the valuation reflects this reality. If this were a more stable, regulated business—like a stock trading platform—it would likely fetch a 6X+ multiple.

That said, unlike stock trading, crypto remains unregulated, bringing both opportunity and inherent risk. If you’re betting on the continued rise of crypto, this business presents a unique chance to capitalize on its current momentum while reaping solid profits.

Although age of the business isn’t specific, the listing does state ‘SBA eligible’ which means they’ve got at least 3 years of tax returns..

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// Automotive Supply E-Commerce - $177K SDE - 2.7x

This young e-commerce business operates with an enviable gross profit margin exceeding 80%, thanks to a fully drop-shipped model. Customer acquisition is driven through Amazon FBA and TikTok Shop, leaving significant potential to scale by expanding into other advertising channels. At such high margins, there’s plenty of room to experiment with customer acquisition strategies while maintaining profitability.

A key consideration is the upcoming elimination of the de minimis exemption for imports under $800 in 2025, which could add logistical hurdles and expenses for orders shipped from China. It’s not a business killer by any means, but it’s something to be mindful of.

For someone well-versed in scaling e-commerce, this is a great opportunity with high margins and plenty of room to grow.

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// Email Forwarding SaaS - $215K SDE - 5.56x

This email-forwarding SaaS offers a sticky service with significant appeal to users seeking simple and efficient domain email setup. Serving 3,300 customers with 232K users and a 65% SDE margin, it generates $30K in monthly recurring revenue. The platform’s scalability and utility make it highly attractive, with a strong free-to-paid conversion rate of 4.03%.

The valuation multiple of 5.56X is steep but justifiable, given the SaaS model's stickiness and high-margin potential. This type of service addresses a broad market need and retains customers for the long term, positioning it for sustainable growth. Growth mechanisms in this space are also high for example partnering with a domain registrar, or offering hosting / website / marketing via white label services.

As I write this, I see a clear reason why the multiple is steep; this would be a valuable ‘tuck-in’ acquisition for an established domain registrar. Still the multiple isn’t out of the realm for an independent acquirer.

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// Online English Tutoring - $125K SDE - 3x

This established online English school focuses on 1:1 lessons with native-speaking instructors, serving over 4,000 students across Europe. With a proven track record, steady recurring revenue, and a loyal customer base, the business is well-positioned in a market with substantial growth potential.

While the rise of AI-powered language tools might seem like a threat, it could also serve to highlight the value of human-led instruction. A savvy buyer might even incorporate AI features as a value-add, using it for basic learning while positioning 1:1 lessons as a premium offering.

The named competitors in the listing—such as Preply and Classgap—are massive players, which demonstrates the size of this market and the growth opportunities available. For someone with marketing expertise, this business offers a strong foundation and significant room to scale in an ever-expanding global demand for English education.

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