2025.01.27 - Online Biz Acquisition Opps

Established eLearning at a fair multiple.

Author

Corey Philip
January 27, 2025

Happy Tuesday folks. Here’s our established and profitable online business for today.

eLearning Platform for Online Drum Lessons - $377K SDE - 3.97x

Overview:
This 10-year-old eLearning platform offers a combination of a subscription-based model and a high-ticket mentorship program ($2,500 AOV). Generating $785K in revenue and $377K in SDE, the business benefits from 35 million YouTube views and 316 million impressions in 2024, positioning it as a recognized authority in the drumming niche. With over 400 pre-recorded drum lessons and a weekly addition, members stay engaged for an average of 6–8 months.

The business features a lean team of four running daily operations, freeing up the owner to focus on strategy. It boasts a substantial email list of 118,000 subscribers and a strong organic YouTube presence, which drives a significant portion of traffic. Growth opportunities include expanding the mentorship program, developing standalone courses, or diversifying revenue through drum-related product lines.

Corey’s Take:
The dual revenue model of low-ticket subscriptions and high-ticket mentorships is a smart approach. It provides a low-friction entry point with an upsell for more engaged customers, ensuring a broad appeal across skill levels. This structure strengthens scalability and creates multiple income streams.

The organic YouTube growth is a massive asset, but its sustainability depends on the talent behind the content. If the seller is the face of the YouTube channel and course content, this business could be a risky buy. The cost and difficulty of replacing the seller with suitable instructors would need to be factored in. The bull case here is a diversified talent pool of independent instructors contributing to the channel and courses, ensuring continuity regardless of ownership changes. Without that, this business might not be worth the risk.

Engagement metrics like 6–8 months of subscriber retention are solid for eLearning, and the team of four appears sufficient for day-to-day operations. In fact, having a slightly larger team than typical for a digital course business may indicate operational redundancy, allowing for easy scaling.

Growth should prioritize leveraging the existing audience. Expanding the mentorship program could yield higher profits, while standalone courses offer opportunities to engage those unwilling to subscribe. Adding complementary revenue streams, such as drum kits or accessories, could also tap into an already engaged customer base.

YouTube’s resilience as a traffic source is another strength. Unlike platforms like Facebook or Instagram, evergreen content on YouTube often performs well for years, keeping the traffic pipeline stable. However, diversifying customer acquisition channels is essential for long-term security, especially given the platform's reliance on organic content.

At $1.5M for $377K SDE (3.97x), the valuation feels steep unless the talent pool is diversified. If all content and visibility depend on the seller, it could be a deal-breaker. Conversely, if the business has a team of instructors producing content and teaching, the multiple becomes more justifiable. Buyers should thoroughly diligence the talent structure before proceeding.

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