2024.06.12 - Online Biz Acquisition Opps

High Margin & Divorce Sale

Hey hey peeps. Today we’ve got 2 businesses. One of them has high margins, the other not so much!

Let’s jump into it.

Subscription-Based Digital Product Business with High Margin 

  • 💰 Asking Price: $420,011

  • 💼 Cash Flow: $180,000

  • 📊 Revenue: $226,536

  • 📅 Established: September 2016

💭 My Take: This business, established in 2016, offers a wide range of self-paced courses and certification programs designed for individuals seeking flexibility, financial independence, and professional growth. The business currently serves over 300 active subscribers with a low churn rate of 5%, reflecting a loyal customer base. The recent decline in site traffic likely contributes to the low 28x multiple, despite the business maintaining a solid monthly revenue stream.

Given the high 79% profit margin, there’s substantial potential to stabilize and grow the business through strategic investments in paid traffic. It’s important to analyze how the decline in organic traffic has impacted new customer signups. This opportunity is perfect for someone with digital marketing expertise who can leverage the existing customer base and robust course offerings to drive growth and increase revenue.

And this is a business that was ‘interesting’… maybe it is a diamond in the rough for someone.

7 Year Old Pet Business With Patented Product - Makes 44k - Asking 169k.

This business has a well rated patented product, and is being sold due to ‘divorce’ which is a much better reason to sell as opposed to many business exits where the owner has taken it as far as possible and wants to cash out.

But from a financial/operational perspective it has a 13% low margin and holds inventory.

I see opportunity here, but not for me. It seems like it would be a good tuck-in for someone already in the pet biz. The asking price is high, I think this is worth 100k + some type of inventory payback as it is sold.

Reply

or to participate.