2025.01.28 - An Online Business I Wouldn't Acquire

While reviewing ‘online business for sale’ listings, I ran across this one. I figured I’d send it out as a case study of a ‘bad online business to acquire’. It’s made good money for the seller, but I think a buyer would be left holding a bad hand.

$1.1 Million SDE with Solar Lead Gen & Subcontracting.

The SDE looks nice here and it’s only operating in Puerto Rico and California. Seems interesting enough, but here’s the thing…

You're regulated by licensing at state level and then city and county. The economics depend on government subsidies, both federal and state (which is why it is operating in PR & CA). Performing local services through sub contractors is a complete headache. Your margin is a major opportunity for actual self-performing businesses (the installers). I’d also bet you’re exposed to major warranty, defect claims from past customers along with permit issues.

It’s more of a money grab (for the seller), than a business.

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