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- 2025.01.11 - Online Biz Acquisition Opps
2025.01.11 - Online Biz Acquisition Opps
eLearning making 246k SDE.
Corey Philip
January 11, 2025
Happy Saturday peeps!
We’ve got a high ticket eLeanring business in an in-demand field.
eLearning Platform for Software QA Training - $246K SDE - Asking $960k - 3.9x
This 3.5-year-old EdTech business offers career-focused software quality assurance (QA) training, generating $463K in revenue and $246K in SDE. Its flagship 5.5-month QA Career Course accounts for 60% of revenue with an average order value (AOV) of $3,500, leveraging a unique blend of mentorship, real-world internships, and interactive bootcamps. This approach differentiates it from typical passive eLearning models and allows the business to command premium pricing.
The business operates with a lean, 100% remote team of eight and minimal owner involvement (less than 20 hours per week). Growth has been driven by PPC ads, SEO blogs, and social media, with opportunities to scale through expanded course offerings (e.g., cybersecurity, AI-driven QA), new geographic markets, and a potential subscription model for ongoing skill updates.
With a fair asking price of $960K (3.9x SDE), this is a compelling acquisition for buyers seeking a scalable digital business in the thriving EdTech sector.
Corey’s Take:
This business stands out by offering much more than traditional video-based eLearning. The inclusion of mentorship and real-world internships not only provides immense value to students but also justifies the high price point of $3,500 per course. This differentiation is critical in a crowded EdTech market and positions the business as a premium player.
The high AOV is intriguing—it likely reflects a significant investment in a sales team rather than an e-commerce-style sales process. That’s a positive for sustainability, but I’d want to dig into the tenure and scalability of the sales team. Can new sales staff be effectively trained, and how dependent is revenue on key personnel?
From a growth perspective, expanding into cybersecurity training is a natural next step. It’s a lucrative field requiring specialized expertise, which aligns with the business’s strengths in offering high-value, technical training. A pivot to a subscription model for ongoing training is also smart—it’s always easier (and cheaper) to sell to existing customers than acquire new ones. While deeper penetration into the U.S. market should be a priority, identifying easy wins in international markets could provide a secondary growth channel.
On the marketing side, I’d focus on social ads over influencers or partnerships. Influencers often over-promise and under-deliver, with limited trackable conversions. The current marketing strategy is solid, and doubling down on what’s already working makes sense.
The shorter operating history of 3.5 years isn’t ideal, but it’s relatively long in the online business space. The consistent growth trends mitigate concerns here. I don’t see any major risks in relying on the flagship course—it serves a market with ongoing demand as new software is developed. However, I would be cautious about relying too heavily on a single customer acquisition channel, such as PPC ads. Diversifying traffic sources is crucial for long-term stability.
At a 3.9x multiple, the valuation feels fair for a business with strong margins, growth potential, and a unique value proposition. For an EdTech buyer, this is an attractive opportunity to acquire a premium, scalable digital product with a clear path to growth.
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