2024.06.27 - Online Biz Acquisition Opps

Hey hey peeps, today we’ve got 3 smallish online businesses for sale.

There have been a lot of good online businesses coming up for sale in the last week, but I’ve been busy mountain biking and trail running. You can see plenty of it on my Instagram (like riding down some big rock faces). It’s raining today so I am catching up, giving my body a rest, and reviewing deals. After sending this I’ll probably be sending another one with larger deals soon.

🔫 Gun to my head question:

If I had to write a check for one of the businesses in this email, with no other details which one would it be?

I’d go with 1 the ‘Shopify Apps for Social Media Analytics’. Well reviewed product, sass sticky, at a high margin and reasonable multiple.

1/ Shopify Apps for Social Media Analytics ($144k/Year)

💰 Asking Price: $575,000
📊 TTM Revenue: $194,000
💼 TTM Profit: $143,000
📅 Established: 2018

This Shopify app business, founded in 2018, specializes in social media tracking and analytics with a subscription model. The main app, which integrates Facebook pixels into Shopify stores, generates 90% of the revenue and boasts over 300 reviews with a 4.8-star rating. Additional apps for TikTok, Pinterest, and Snapchat further diversify the revenue streams. With an asking price of $575,000 and a fair 4x profit multiple, the business shows strong growth potential.

• High margin business

• Multiple diverse revenue sources

• Excellent reviews and high customer satisfaction

• Potential for increasing pricing from $7.99/month to boost profits

• Opportunities to expand with the "Built For Shopify" badge and new features

❓️ How stable is the customer base given the subscription model?
❓️ What are the key growth strategies beyond organic traffic?
❓️ How dependent is the business on the current developer for ongoing operations?

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2/ Local Pickleball Connection Platform ($25k/Yr)

💰 Asking Price: $75,000
📊 TTM Revenue: $25,000
💼 TTM Profit: $9,000
📅 Established: June 2023

This digital hub for pickleball enthusiasts offers a way to join leagues, connect with players, and promote the sport in over 15 cities across the US. Despite being a young business, it claims to have no national competitors and provides a profitable proof of concept at a low price. The platform's business model includes a website with a strong focus on SEO and potential for expansion into new markets.

• New, hot & trending passion market

• No national competitors

• Operates in 15 cities with expansion potential

❓️ How does the platform actually make money?
❓️ How quickly can this business be expanded to new cities?
❓️ What are the key strategies for growing the user base and revenue?

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3/ iOS App for Digital Media with Strong Potential (1.8x Multiple)

💰 Asking Price: $168,960
📊 TTM Revenue: $92,160
💼 TTM Profit: $92,160
📅 Established: November 2019

This iOS app business, established in 2019, operates in the digital media niche, offering a user-friendly interface for scanning and managing various types of codes. The app is free with a monetized weekly subscription for premium features. Despite excellent reviews (4.4 stars from 150 ratings) and a fair 22x multiple, revenue and profit have dropped by 50% over the past two years.

• Great multiple for an app business

• Excellent reviews

• Minimal advertising spend, relying on organic search

❓ How is the margin 100% when there are at least hosting costs?
❓ Why has revenue declined so significantly? Was aggressive paid advertising used initially, and has it been left to churn since?

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