4 Feb 2024 - Online Biz Acquisition Opps

5 Deals: Is The Accredited eLearning Worth 5x Valuation?

5 killer deals this week. I really like the virtual home service business, and the accredited elearning one (valuation is a little steep though).

Personally I am coming to the end of a month in Nelson New Zealand. It’s been a killer place with some great mountain biking. One of my pay-per-call brands is resuming after the winter storm really through whack in revenue and expenses in January.

8 Year Old Camper Van Ecom Brand

💰 Asking Price: $5,850,000

💼 EBITDA: $1,390,628

📊 Revenue: $4,808,165

📅 Established: 2016

My Take:

We’re starting off with one that is a little bigger than I like. Still, considering a 15% down payment you’re within reach of an SBA Loan for a solid business.

This ecom business is in the lucrative camper van industry. The market is very passionate with a huge audience of folks that spend most of their disposable income improving their camper van. This one is particularly of interest as the company has an in house developed and branded product line with 5 SKUs responsible or about 45% of sales and an $850 AOV.

95% of the sales come through their website which means their huge opportunity to open up to the market place channels (Amazon). With an $850 aov (and 25%+ margins) their is likely room to scale up with advertising. As a topper, the current owners got into out out of personal passion, which means there’s usually a lot of hidden gems.

Virtual Home Service Business With 42,000 Service Providers

💰 Asking Price: $3,200,000

💼 EBITDA: $812,971

📊 Revenue: $1,678,942

📅 Established: 2019

My Take:

This business takes ‘lead generation’ 3 steps deeper and actually books/schedules their customers with a local service provider for simple servings such as moving, landscaping, and handyman. They take a 30% cut while the service provider collects the remaining 70%. Impressively they’ve got relationships 42,000 service providers and coverage of 131 metro areas! Getting the relationships and proving concept with reliable service providers is no easy task, so I see a ton of value in what they built — even better it’s throwing off a nice cash flow margin. Details state that customers all come from Craigslist’s ads, word-of mouth referrals, or organic traffic via Google business profiles; considering a 50% margin, there is plenty of room to tap into paid ads 🤤

Some thing to consider with this business model however is the sheer number of moving parts, variables and reliability on others. There will no doubt be a lot of day to day frustration as you turn the human resource wheel.

eLearning Accredited In Scientific Industry

💰 Asking Price: $1,675,000

💼 EBITDA: $337,469

📊 Revenue: $408,813

📅 Established: 2019

I love finding digital products, that are career oriented and accredited! Digital products provide the infinite scale we all love while the accreditation provides a high barrier to entry (along with validation/proof) that we also love. Further more career advancement info products often fall into a niche that is overlooked by the info product knock of entrepreneurs.

The business has grown steadily with 97 monthly active customers in 2019 to 1500 in 2023. The listing mentions that pharmaceutical and clinical organizations consistent use these courses to scale which to me is indication of strong demand and upward pricing potential — established and happy corporate clients will usually deal with price hikes as the total cost is still relatively minuscule.

One thing to uncover with any eLearning product is ‘who creates it’. An info product this size is likely to have been cultivated by the owner, which isn’t bad, but you would want to avoid a scenario where the owner is ‘guru persona’ (unlikely considering the niche). The listing indicates there is someone trained and ready to run it.

Distressed DJ Ecom: 14 Year Platform Potential?

💰 Asking Price: Open To Offers

💼 EBITDA: $159,511

📊 Revenue: $2,954,193

This listing is a seemingly well rated ecom business that is turning slim profit marketing of about 6%. I generally don’t like ‘distressed' businesses, but this one stood out with the indication of ‘accepting offers’. As a buyer here I would look to structure some type of earn out with very little cash out of pocket. So let’s talk about whats here…

A 14 year old aged domain. That sets a killer ground for content/seo growth. Customer base to the tune of nearly 3mm/yr; hello remarketing! 98% inventory 3pl; no dropship competitiors (assuming).

What’s the playbook? Identify the most profitable products. Create a content marketing plan. Add all products to Google shopping. Run ads for products with more than 50% margin. Launch your own house brand.

Safegaurd From Flies & Bees Fanning Cashflow (ecom)

💰 Asking Price: $1,150,00

💼 EBITDA: $352,527

📊 Revenue: $1,938,297

📅 Established: 2019

This business is selling a ‘innovative’ insect repellant fan for outdoor dining. At first glimpse this seemed like just a pure advertising play but roughly 42% of their business comes from organic (58% FB ads), they’ve got a trademarked brand, they’ve been around since 2019 and their product solves a genuine problem (it’s not cool seeing flies land in your food)… all of these points indicate they may have a established a true brand.

Before making an offer I’d want to understand the ‘innovative’ aspect of the product along with how much branded traffic they get to their website. In otherwords, it their product unique and effective and are people seeking out their brand. If yes to both, this could be a killer ecom business.

10 Feb 2024 - Online Biz Acquisition Opps

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