2024.06.06 - Online Biz Acquisitions Opps

Product-Market Fit Launch Pads.

Author

Corey Philip
June 06, 2024

In yesterdays deals I mentioned that the deals tend to lean towards ‘established and stable’ or ‘product-market fit launchpads’…. businesses that are small (and profitable) but have show there is a market for their product and could really ‘take off’ in the hands of the right operator.

Now when it comes to these style businesses valuation is key. It’s not uncommon to run accross these little businesses asking ridiculous valuations like ‘170k for a business that makes 2k/m’ effectively a 7x multiple.

In reviewing them i am looking for a less than 3x multiple.

Today we’ve got some some.

Now I also included 3 listings for virtual accounting practices. I like this model of business. These businesses can easily thrive under an online business model through productized service, and digital marketing — particularly if they have a niche market established.

Let me know: How was today's newsletter?

Judge me on the content, not the grammar

Login or Subscribe to participate in polls.

Project Management Platform - High Margins @1.6x Multiple

💰 Asking Price: $160,000
💼 Cash Flow: $103,000/year
📊 Revenue: $123,000/year
📅 Established: 2022

💭 My Take: This business appears to be a SaaS platform designed to streamline project management by managing tasks, yet it's listed as an agency startup. This discrepancy aside, it shows a proven product-market fit with a low multiple of 1.6x and impressive margins of 75%. The platform simplifies project management, making it easier for businesses to handle development, design, finance, and sales tasks efficiently.

While the exact nature of its services isn't entirely clear, the financials are compelling, with stable monthly revenue between $8,000 and $10,000. This business is ideal for someone looking to capitalize on high margins and a low multiple. Given its established user-friendly interface and strong industry reputation, the platform holds significant potential.

Global Medication Locator for Travelers

💰 Asking Price: $140,000
💼 Cash Flow: $70,000/year
📊 Revenue: $76,000/year
📅 Established: June 2017

💭 My Take: Generally, I'm not a fan of content businesses, but this one seems to provide a value-add tool by acting as a global directory for locating medications. It helps travelers and expatriates find equivalent drugs in different countries, ensuring they have access to necessary medicines. The site has been online since 2017 and remains stable despite recent Google updates, indicating a solid foundation.

I'm unsure how it makes money—whether through display ads or affiliate links—but it boasts a 75% profit margin and a low 1.6x multiple, which is appealing. Not sure if I like it, but it has the foundational requirements for a low-price acquisition by a growth marketer.

Virtual Accounting Businesses

Reply

or to participate.