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- 2025.01.14 - Online Biz Acquisition Opps
2025.01.14 - Online Biz Acquisition Opps
Who's ready to get into the surrogacy & egg donations business for $1 million dollars
Corey Philip
January 14, 2025
Today we have got quite possibly the most unique online business I have ran across. And I like it!
Online Agency for Surrogacy & Egg Donations - $279K SDE - 3.75x
This 15-year-old business offers premium surrogacy and egg donation services, catering to an exclusive clientele. With a $9,325 average order value (AOV) and 75% margins, it generates $373K in annual revenue and $279K in SDE. Its differentiation lies in offering access to a high-quality donor database, including Ivy League graduates and professional models, which resonates with clients seeking to give their future children every advantage in life.
The business operates entirely on word-of-mouth referrals with zero ad spend, reflecting its strong reputation and organic growth. Operations are claimed to be fully automated, allowing ownership to focus on donor and surrogate management, legal documentation, and other high-level tasks. Growth opportunities include introducing adjacent services such as fertility counseling or exploring paid advertising to scale customer acquisition.
With an asking price of $1.05M (3.75x SDE), this is an attractive opportunity for a buyer seeking a high-margin, defensible business in a niche market.
Corey’s Take:
This is a fascinating business in a niche I don’t encounter often. The focus on premium donors—like Ivy League graduates and models—is crucial to sustaining high pricing and growth. Prospective parents are often willing to pay a premium to set their future children up for success, making the exclusivity of the donor database a significant selling point.
The fact that the business has grown solely through word-of-mouth is a major strength. It isn’t beholden to any platform like Google or Facebook for customer acquisition, making it more resilient to external changes. This also shows the level of trust and satisfaction among clients—something money can’t easily buy.
However, the operations side raises questions. The claim of "full automation" is intriguing, but I’d need to diligence this deeply. What does the fulfillment process look like? Are the eggs stored, or does the donor simply go to a clinic when matched? Is the business acting as an intermediary between third parties? These are critical aspects to understand scalability and risk.
For growth, I’d test related services like fertility counseling, which could be delivered 100% online. The existing customer base provides an in-market audience to experiment with at low cost, reducing the risk of launching new offers. Partnerships with online counseling services could further enhance revenue streams.
As with any high-stakes personal service, there’s potential legal liability and reputational risk. Researching litigation in this industry and understanding the business’s insurance coverage would be essential. An attorney’s guidance would also help assess long-term risk mitigation strategies.
The 3.75x valuation seems fair if the automation claims hold up. Starting a similar business from scratch would be incredibly challenging, given the operational complexity and the trust required to acquire high-value clientele. This is a niche, defensible business with strong margins and significant barriers to entry—a compelling opportunity for the right buyer.
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