2024.06.21 - Online Biz Acquisition Opps

Hey Hey peeps, in this edition we’ve got some smaller deals all at/below the 400k asking price point. And they’ve got 60% margins with at least 5 years operating to boot.

The mental workout question… if I had to write a check for one of these right now with not further deets which would it be?

Personally I’d go with the Edtech at 400k (the first one). Yes the multiple is high, but I’d rather pay for a higher quality business and work with a solid foundation. It’s got a clearly defined product/offer that seems to be valuable; as opposed to the other edtech business which may be more of a blog. The KDP business seems alright, but absent further details channel risk may be high and the model is subject to more competition (otherwise expressed as has less of a moat).

83k/yr Edtech Games for Overcoming Learning Difficulties

💰 Asking Price: $400,000
📊 TTM Revenue: $111,000
💼 TTM Profit: $83,000
📅 Established: 2019

💭 My Take: This edtech platform offers a legitimate value-added product designed to help children overcome learning difficulties and enhance language skills. Available in English, Spanish, and French, the games are tailored for children aged 5-12 and incorporate evidence-based learning strategies validated by experts. The platform serves both parents and educational professionals, integrating seamlessly into home and school learning environments. However, the 4.8x profit asking price seems steep for a business of this size, suggesting the need for a thorough evaluation of customer lifetime value (LTV) and churn rates.

Despite its high asking price, the business shows promise due to its strong educational focus and multilingual support. Operated on a subscription model, it caters to both B2B clients (schools and school districts) and B2C clients (families). The current financials indicate potential for growth, particularly if the business increases its marketing efforts and expands into new markets. Understanding the quality of the product and customer satisfaction will be crucial in determining its true value and scalability.

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108k/yr Edtech AI-Driven Tutoring Platform

💰 Asking Price: $350,000
📊 TTM Revenue: $119,000
💼 TTM Profit: $108,000
📅 Established: 2019

💭 My Take: 'Edtech AI-driven tutoring platform that offers coding, data science courses'… the literal headline of this one reads well, but the more I read the description, the more confused I become.

The headline highlights an AI-driven tutoring platform focusing on coding and data science courses, but the description lists 1:1 tutoring as its primary product. The site attracts an impressive 6 million annual organic visitors and is monetized through programmatic ads, which makes it resemble a blog that sells 1:1 tutoring services. Run by a solopreneur without any paid marketing or sales efforts, the platform's current revenue suggests it is significantly under-monetized given its organic traffic.

This business could be a substantial opportunity for growth with the right marketing and sales strategies. However, it's essential to evaluate what the actual edtech product is and how it can be effectively scaled. The listing is intriguing and could be a hidden gem with the proper focus and resources.

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64k/yr KDP & Lead Generation Business in Pet Care

💰 Asking Price: $158,186
📊 Annual Profit: $64,260 (Avg. Monthly Profit: $5,355)
📈 Annual Revenue: $85,956 (Avg. Monthly Revenue: $7,163)
📅 Established: March 2010

💭 My Take: This KDP business stands out by deriving 51% of its revenue from in-store book sales and lead generation, making it more than just a typical KDP venture. The in-store sales are facilitated by a third-party distributor, simplifying operations by handling storage, sales, distribution, and returns. A key point to investigate is what leads are being generated for, as 15% of the revenue comes from this stream.

The business has a robust website that drives 89% of its traffic through organic search, which is interesting given the KDP sales channel. This suggests the website may be directing traffic to Amazon for book purchases. Evaluating the brand value of the author and whether other books could quickly gain traction is crucial. Additionally, understanding the impact of an established KDP seller account on new product launches would be beneficial. The 30x monthly profit multiple seems high, but the diverse revenue streams and operational simplicity make this an intriguing opportunity.

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