2024.05.24 - Online Biz Acquisition Opps

House plans, video editing, or lotions & potions newsletter

Happy Friday peeps!

Weā€™ve got some solid online business acquisitions opps here. Iā€™m requesting the CIM on 2 of these.

I have an ASK for you. Give me some feedback on the newsletter.

The Acumen Wire is a passion project. There is no ā€˜monetizationā€™. Your feedback and my passion for acquiring online businesses keeps it going.

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// Content Site & House Plan Ecommerce Site w 300k+ Cashflow

šŸ’° Asking Price: $990,000
šŸ’¼ Cash Flow: $313,731
šŸ“Š Gross Revenue: $533,916
šŸ“… Established: 2018

Overview:
This business combines a content site with an ecommerce component, selling digital house plans in the homebuilding space.

Why Itā€™s Interesting:
Generally, I'm not a fan of content businesses, but this one has an ecommerce component selling a digital product. Organic social and direct traffic account for 45% of total traffic, reducing reliance on Google search.

Growth Opportunities:
The growth opportunities presented are quite broad, including real estate advertising, mortgage leads, brokering metal buildings, and selling higher-ticket house plans. This could be good, but I'd rather see a more focused growth plan.

Key Concerns:

  • The margin is healthy, but possibly low for a business that sells digital products.

  • I wonder what the split is between ecommerce sales and other monetization methods they use. They describe the business as a content site, so I am inclined to believe there is affiliate/display ad income here.

Bottom Line:
This business blends content and ecommerce effectively, with potential for growth. However, it needs a more focused growth strategy and a clearer understanding of its revenue streams.

// Video Editing For Ecom (digital product) Printing Money

šŸ’° Asking Price: $3,100,000
šŸ’¼ Cash Flow: $795,332
šŸ“Š Gross Revenue: $2,075,117
šŸ“… Established: 2020

Overview:
This profitable and growing B2B digital product agency specializes in creating and editing video ads for ecommerce and drop-shipping stores.

Why Itā€™s Interesting:

  • Digital Product: This business sells a 100% digital product, which I like due to the simplicity and scalability.

  • Revenue Breakdown: Monthly memberships account for 50% of revenue, with 1,419 paying members. The remaining revenue comes from one-time video package sales.

  • Solid Marketing System: The business has a strong ROAS with over 2x on cold marketing and 5x on retargeting.

  • Automated Fulfillment: The fulfillment process is fully automated, reducing the workload and making operations highly efficient.

Key Concerns:

  • Why Selling?: This business checks a lot of boxes, so why are the owners selling? It seems almost too good to sell.

  • AI Obsolescence Risk: Is this business at risk of becoming obsolete due to advancements in AI?

Bottom Line:
This B2B digital product agency is well-positioned with a solid marketing system, a high margin, and low workload. The fully automated process and strong customer acquisition metrics make it very appealing. However, understanding the reason for the sale and assessing the risk of AI obsolescence are crucial before making an offer.

// Intriguing Spirituality Niche Email Newsletter

šŸ’° Asking Price: $86,284
šŸ’¼ Cash Flow: $34,512
šŸ“Š Gross Revenue: $43,260
šŸ“… Established: March 2022

This one's a bit different from the usual listings I cover, but it has some interesting aspects worth noting.

What Caught My Eye:

  • Email List Revenue: This business makes its money from an email listā€”no reliance on Google here. With a subscriber base of 9,000, there's real potential for growth, especially with paid traffic strategies.

  • High Earnings Per Subscriber. Just some rough math here, with 86,284 in 12m revenue and 9,000 subscribers there is a value of $9.59 per subscriber.

  • Diverse Income Streams: Revenue comes from three main sources: 30% digital products, 36% affiliate marketing, and 30% lead generation and sponsored emails. No physical products involved, which means lower overhead and simpler operations.

  • Niche Market: It's in the spirituality niche, which isn't my personal favoriteā€”often a mix of lotions and potionsā€”but it can be very lucrative.

Things to Consider:

  • Email List Growth: How is the email list currently being grown? This is a key question for understanding the future potential.

  • Expansion Potential: With a value per subscriver at $9.59, running paid traffic to the email list could bring fast and profitable growth. Plus, there's room to create more digital products to diversify revenue even further.

Bottom Line:

This business might be small and relatively new, but its email-driven revenue model and diverse income streams make it an intriguing opportunity. If you're up for diving into the spirituality niche, this could be a solid investment.

// 2 Other Sizable Amazon Businesses

Iā€™m not a fan of Amazon businesses considering the channel risk and the blatant reality that Amazon is proactively trying to produce products themselves, but these may be of interest.

Health & Wellness brand; 544k SDE. 60 skus, 12,000 reviews @4.7 stars available on multi channels like walmart.

Outdoor products brand; 335k SDE. 11 skus, 6,000 reviews @4.6 stars, holds tradesmark.

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