4 May 2024 - Online Biz Acquisition Opps

Niche insurance investigation firm -- I really like this one.

Hey hey peeps, this week we’ve got some good deals, and some ‘not for me’ deals… but maybe for you.

In the past 3 months I’ve made 2 offers on digital products businesses. One of them (which I did include in this newsletter) I loved and offered full price cash but the seller would not do a proper non-compete. Very frustrating. In light of that, this week I’ve made good progress towards getting a digital product launched. I wanted a digital product that has a ‘non b2b’ consumer market and would be sensible at a sub $50 price points.

Aside from that my lead/call gen business is carrying along and growing. My outbound sales team attacking a new vertical is making more headway than ever (they have been the bane of my existence for a few months now).

On that note, here are the deals I have for you this week! If you have any questions, feel like I missed something, or have insight on their business models, shoot me a reply. I read all the replies personally.

Dropshipping Vending Machines & Re-fills For 32 Years

  • 💰 Asking Price: $630,000

  • 💼 EBITDA: $192,000

  • 📊 Revenue: $2,790,000

  • 📅 Established: 1993

32 years in business and 2.79mm in annual revenue standing out but with only 192k of cashflow, a 6.88% margin doesn’t leave much shine on this one. This listing states that is has a “premium domain” so with some quick Googling I believe it is candymachines.com available for sale here.

The business is simple and time tested, but to make this an acquisition target you would need a plan for growth — but I’m not seeing one. To really grow this business, you would need to reach a small audience of people who buy/refill vending machines, and at a low cost because there’s not much margin in this stuff. Another lever you could pull is inventorying everything to save costs, but you would really need to get this stuff like 50% cheaper to make it feasible.

It’s interesting but not for me. If you know something about the vending business, it may be for you.

Embeddable Web App For Lead Generation

  • 💰 Asking Price: $396,248

  • 💼 EBITDA: $105,627

  • 📊 Revenue: $116,616

  • 📅 Established: 2013

Reading between the lines of the this one, it’s an embeddable web form — like Jotform, albeit probably a lot more watered down (I could be totally off). At 10 years old and relatively small, I’d guess the tech probably not on the cutting edge. This is substantiated by slightly declining revenue. The listing also mentions that one customer is responsible for $30,000/yr of revenue.

If you’re a SaaS connoisseur there may be some opportunity here, but this one seems like to much of a ‘fix up and old dog’ project.

Specialized National Insurance Investigation Firm

💰 Asking Price: $1,350,000
💼 Cash Flow: $363,000
📊 Revenue: $2.107M
📅 Established: 2010

Here’s a gem in the world of specialized, recession-proof businesses. This one does insurance investigations for large equipment claims. Operating since 2010, this firm is renowned for its detailed and unbiased reports, servicing over 100 insurance companies nationwide each year. With a fully remote operation, it offers significant flexibility and minimal overhead.

The firm employs specialized technicians (likely as-need independent contractors), which reduces costs and provides a competitive edge. Its operations require little owner involvement, with a management team in place that ensures efficiency and reliability.

This business stands out in a niche market with fewer competitors and high entry barriers, making it less susceptible to economic downturns and providing a stable cash flow. It's an excellent opportunity for those looking to invest in a steady, growth-capable enterprise with a robust operational model.

My Take: This firm offers stability and potential in a specialized industry. With its established client base and proven profit model, it’s ideal for those seeking a business with growth potential and minimal day-to-day demands.

Dropshipping Fueled By HUGE Youth Sports Market

💰 Asking Price: $1,350,000
💼 Cash Flow: $394,750
📊 Revenue: $2.246M
📅 Established: 2020

This unique business creates personalized gifts like medal displays and night lights, catering to the growing youth sports market. Despite being a seasonal business with 80% of revenue generated in Q4, it's poised for expansion due to the increasing trend in youth sports spending and parental investments in memorable gifts for their children.

The business operates on a no-inventory model, with products made on-demand, enhancing its efficiency. It has streamlined operations with a small team handling everything from customer service to product development, allowing for minimal owner involvement outside of the peak season.

A potential growth area is addressing the common dilemma of parents with excess medals and trophies, offering creative display solutions that could tap into an underserved market.

My Take: While the seasonal nature of this business poses challenges, the expanding market and potential to solve a significant pain point present a compelling opportunity for growth.

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