2024.06.28 - Online Biz Acquisition Opps

Hey hey peeps today we got 3 businesses all doing about $1.1 million in profit. Let’s take a look at them

🔫 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?

This one is tough. Real estate investor training / Saas sounds good, I like the digital product aspect, but the involvement of 2 founders + risk of ‘persona’ makes it less appealing. Camper Vans… seems ok. Cookware brand, has good margins (better than camper van), and holds patents. I’d go with the Cookware brand.

The other thing from an operational perspective is that camper van accessories would also likely require customer install/assembly which by nature lends itself to returns due to installation errors.

// Camper Van Ecom Brand (1.1 million per year).

💰 Asking Price: $4,215,000 + Inventory
📊 Revenue: $6,423,060
💼 Income: $1,151,260
📈 Multiple: 3.66x
📅 Established: 2016

💭 My Take: This well-established camper van eCommerce brand has proven its resilience and profitability, even after the COVID-19 camper van boom. The business boasts a perfect 5.0 Google rating, indicating the high quality of its products and customer satisfaction. With minimal paid marketing, most of the business's growth has come from organic content, driving over 100,000 organic pageviews per month. To continue in this business, I believe new owners would need to immerse themselves in the camper van lifestyle.

The company's ambitious goal of becoming the REI of the camper van industry is lofty but attainable given its current trajectory. The revenue, income, and stability make this a highly attractive opportunity. However, no details are provided on inventory, which is a crucial aspect to evaluate. With an average order value (AOV) of $900 and strong organic traffic, the business has significant potential for expansion through increased paid marketing efforts, product catalog expansion, and entry into new markets like Amazon.

View Listing

// Real Estate Investor Training and SaaS Business

💰 Asking Price: $5,150,000
📊 Cash Flow: $1,091,210
📈 Gross Revenue: $2,055,296
📅 Established: 2018

💭 My Take: This high-margin business is well-established and generates diverse revenue streams through digital info-products, SaaS subscriptions, and coaching services for real estate investors. The business boasts a 53% profit margin and is projected to double its revenue in the next few years. However, the involvement of two founders in daily operations could mean they are likely underpaid for their efforts.

The company's robust social media presence and ads funnel indicate that there are few "easy wins" left for growth. It's crucial to assess if the founders' personas are deeply ingrained in the marketing, as this can pose a risk when transitioning to new ownership. Success in this business will require experience in coaching and motivating audiences, as well as a high level of expertise in info products to bring innovative ideas beyond standard marketing approaches. Despite these challenges, the revenue, income, and stability make this business worth a serious look.

View Listing

// Premium Production Cookware Brand with 40% YOY Growth

💰 Asking Price: $5,020,000
📊 Revenue: $4,015,204
💼 Profit: $1,115,259
📅 Established: 2014

This well-established eCommerce brand specializes in premium production cookware, boasting an impressive 27.5% profit margin and 19 patents. With 30% of its revenue coming from profitable B2B sales to top retailers and the remaining 70% from direct-to-consumer channels, the company demonstrates diverse revenue streams and a strong market presence. The business has experienced remarkable 40% year-over-year growth, supported by a full and experienced team, and maintains a manageable inventory valued at $200,000.

• Incredible YOY growth

• 27.5% margin for an eCommerce business

• 19 patents and 10 trademarks

• 30% of revenue from profitable B2B sales

• Experienced team in place

❓ How are purchase orders from retailers handled, and what challenges exist in managing the B2B revenue channel?
❓ What unique features or competitive advantages does the product offer in the competitive kitchenware space?
❓ Are the patents primarily design or utility?
❓ What has driven the 40% YOY growth, and is this growth sustainable to justify the current valuation?

View Listing