2025.02.09 - Online Biz Acquisition Opps

I'd take this 157k SDE CBD Brand at a 2x multiple!

Author

Corey Philip
February 09, 2025

Happy Sunday evening online business shoppers!

Here’s what we’ve got today.,,,

UK Automotive Compliance Platform – SDE $544K – Asking $1.9M – 42x

Listing Type (?): Solid! (maybe)

This UK-based subscription business serves car owners by helping them navigate government-required tests and taxes with a digital product. While just two years old, 81% of its revenue comes from subscriptions, making it highly predictable. The regulatory tie-in suggests strong customer retention, as compliance-related services tend to be sticky. A 950,000+ email list and multiple domains add further defensibility.

Not as aged as I’d like but I get the feeling there’s ‘something ‘ here. A lot would depend on how defensible the product/subscription is.

Private Label CBD Brand – SDE $157K – Asking $315K – 2.01x

Listing Type (?): Solid!

This Shopify-based CBD brand boasts a 75% repeat customer rate, a 360+ subscriber base, and nearly 50% profit margins even after paying a 3PL and affiliate marketers (their advertising source). With $13K+ in recurring revenue per month, the business has solid fundamentals and room to grow.

The challenge? Advertising restrictions. CBD brands struggle to run ads on major platforms, but workarounds exist (e.g., indirect landing pages). A buyer with strong digital marketing chops could scale this by boosting affiliate commissions or unlocking paid traffic strategies.

That multiple is attractive; for the right operator, this could be a GREAT business.

Shopify Loyalty App – SDE $55K – Asking $200K – 3.6x

Listing Type (?): Interesting Find

Shopify apps tend to have strong retention due to high switching costs, and this loyalty and rewards app claims feature parity with Smile.io. With a 25% growth rate and a solid tech stack, it has potential for scale.

However, reported revenue and profit numbers being identical raises concerns. Either the seller is doing everything solo or underreporting costs. A realistic adjustment would factor in an overseas developer or support hire… and with this small profit taking a haircut makes it look less like a solid business.

For an experienced Shopify app operator (some very large roll-ups exist in this space), this could be a valuable asset—if the cost structure checks out.

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