2024.06.13 - Online Biz Acquisition Opps

Whos Buying This Digital Product Business In The Fitness Industry!

Today we have 3 unique deals…

  • Physical Product Ecom: auto parts

  • Digital Product: CE courses

  • Digital Product/Blog: Fitness

(this is a fun thought exercise)

If I had to stroke a check for full asking price on any of these right now…

it would be ‘Online Continuing Education Provider for Healthcare Professionals’.

Yes it is priced high at 5x, but you get a 20 year aged business (seo will react well to any content published), 180 courses already made, in an evergreen/mandated industry.

MK5 A90 Supra Performance Auto Parts Business

💰 Asking Price: $2,200,000
💼 Cash Flow: $608,108/year
📊 Revenue: $4,406,042/year
📅 Established: 2021

💭 My Take: I like that this business was started by a 'non-business' person and has a nice high AOV. This eCommerce brand, founded by a pediatric ultrasound specialist, focuses on the MK5 A90 Toyota Supra market. With a high average order value (AOV) of $1,029 and 90% dropshipping, it minimizes inventory risks. As one of only nine HKS Master Pro dealers nationwide, it enjoys exclusive distribution rights. However, its reliance on organic SEO poses channel risks, and there are usually trademark concerns with businesses selling accessory products. Additionally, the need for a physical storefront is unclear. I would be inclined to believe a storefront is needed to maintain wholesale accounts, but 99% of the orders happen online. Not necessarily a bad thing as the storefront provides a bit of a moat.

I see the growth of this business as largely being UGC content-driven. The audience is passionate, and substantial growth would come from someone who can spark the sharing of videos and pictures involving the installed products.

Online Continuing Education Provider for Healthcare Professionals

💰 Asking Price: $570,000
💼 Cash Flow: $113,303/year
📊 Revenue: $150,678/year
📅 Established: 2004

💭 My Take: I like these digital product businesses that have ‘licensure accreditation’. This business offers a robust portfolio of 180 online courses specifically designed for continuing education in the healthcare sector. With 20 years in the industry, it has a strong foundation but significant room for growth. The founder is an expert course designer but not a marketing specialist, which likely explains the modest revenue despite the business's longevity. This presents an excellent opportunity for a marketing-savvy buyer to leverage existing content and boost sales.

However, the 5x multiple valuation appears high given the current revenue. This would typically be justifiable for a larger operation. Prospective buyers should also investigate the requirements for creating new courses moving forward, as the listing mentions that an "Expert Sr. Instructional Designer" can be included with the sale. Understanding the costs and logistics of course development will be crucial for assessing the business's long-term viability.

eCommerce Brand + Digital Content Creator in the Fitness Industry

💰 Asking Price: $1,500,000
💼 Cash Flow: $559,738/year
📊 Revenue: $857,030/year
📅 Established: 2017

💭 My Take: This business is intriguing because, despite being advertised as an eCommerce brand, only 13% of its revenue comes from eCommerce sales. The majority of its income (67%) is derived from display advertising, which suggests it functions more like a blog. Websites relying heavily on display ads have faced significant challenges recently, so examining this business's traffic and revenue trajectory is crucial. On the plus side, the business utilizes YouTube and email marketing, indicating it may not be solely dependent on Google traffic.

The business offers 19 digital products, which is a positive sign. The quality and reviews of these products will be critical. High-quality digital products could significantly enhance the business's value. This company presents a great opportunity for someone who can capitalize on its established audience and diversify its revenue streams further.

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