The Business Inquirer #073
The Business Inquirer #073
In this week's issue, I highlight four listings including a jewelry ecommerce brand, a Google Meet add-on, and more.
The Business Inquirer covers the most interesting tech-enabled business acquisition opportunities. Written for entrepreneurs, search funds, investors, and business owners. It’s completely free and you’re guaranteed to learn something new.
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In this week’s issue:
🛒 eCommerce - 2 listing
☁ SaaS - 2 listings
🕸 Content/Service/Other - 0 listings
🛠 Tools & Resources
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🛒 eCommerce
American Patriotic Apparel - $5.5M
For sale is a 6-year-old apparel brand that sells American patriotic clothing on Amazon and DTC.
307 active SKUs; Sold on Amazon FBA and Shopify;
Amazon AOV of $35; Shopify AOV of $53; 42-48% repeat order rate;
220k IG followers; 300k FB followers; 150k e-mail subs;
10 contractors handle day-to-day ops; Owner spends 2-hours per day;
TTM Revenue: $4.9M; Profit: $1.5M; Margin: 31%
Asking: $5.5M; Multiple: 3.67x
✅ What I Like
Love this niche. Very engaged audience that spends money. There’s some operating history. Looks like operations have been streamlined so that the owner is hands-off. Fundamentals look solid. A lot of opportunities to add additional products.
❓ Questions & Concerns
These types of businesses typically don’t have any moat around them. Advertising can be tricky due to the political nature of the business. With advertising costs going up, there’s a danger that margins will shrink significantly.
You can view the listing on Website Closers.
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Jewelry - $950k
For sale is a 19-year-old ecommerce business that sells gold and diamond jewelry. Owner looking to retire.
Most revenue is generated without social media
Based in NJ but easy to relocate; 3 staff members can stay on;
TTM Revenue: $3.2M; Profit: $350k; Margin: 11%
Asking: $950k; Multiple: 2.71x
✅ What I Like
A lot of operating history. What caught my eye here is that the business has not invested much in social media. In today’s environment, not relying on social media to acquire customers is a big advantage. Valuation is reasonable if the business is sustianable. Owner retiring so there may be some creative deal structures.
❓ Questions & Concerns
Very crowded market. Expensive to acquire customers using PPC. Not clear if this is a dropshipping business. I woud do a deep dive on that margin and see if there are any easy levers to pull to grow it. Some basic e-commerce due diligence questions around product sourcing, logistics, conversion rate, repeat orders, returns, and more.
You can view the listing on BizBuySell.
☁ SaaS
Chrome Extension for Google Meet - $289k
For sale is a 2-year-old Google Chrome extension that adds new features and enhancements to Google Meet.
Competitors: Meet Plus for Google Meet
1,900 active subscribers; +4 Star rating;
TTM Revenue: $142k; Profit: $126k; Margin: 89%
Asking: $289k; Multiple: 2.29x
✅ What I Like
During the pandemic, Google did a lot of work on their Meet product to compete with Zoom. This SaaS came in at the right time and took advantage of the growing popularity of remote work and Google Meet. Solid foundation here to grow the business. Valuation isn’t crazy.
❓ Questions & Concerns
MRR has dropped from a peak of $16k to $7k. I would want to understand if the revenue has stabilized or continues to drop. There’s always a chance that Google will just incorporate the features into Meet. What are the conversion rates and churn? How do the support tickets look and who handles them?
You can view the listing on MicroAcquire.
————
Turn YouTube Videos into Articles - $75k
For sale is a 2-year-old SaaS that allows creators to turn YouTube videos into readable articles with text and pictures.
Competitors: Typestudio, Youtuberead
TTM Revenue: $14k; Profit: $12k; Margin: 86%
Asking: $75k; Multiple: 6.25x
✅ What I Like
Niche SaaS. Large TAM with a customer base that is easy to identify and reach. Might be a good addition to a portfolio of tools for YouTube creators.
❓ Questions & Concerns
Young project. Not yet clear there is robust demand. Solution without a problem? Tough to put a valuation on the business.
You can view the listing on MicroAcquire.
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🕸 Content/Service/Other
🛠 Tools & Resources
These are tools & resources that I personally use. They may contain affiliate links so I’ll get a few shekels if you sign-up.
Cerebro Capital - Cerebro has a network of 1,500+ lenders who can provide debt financing for your acquisition, refi, etc. $500k minimum.
X5 Deals - Proprietary deal sourcing. They do the outreach and send you relevant, actionable deals directly into your inbox.
Curators - Proprietary deal sourcing. You need targets that fit your investment criteria, and Curators delivers week after week - we even update your personalized database on a daily basis with new information on best-fit targets.
BizNexus - Proprietary deal flow, deal aggregator, and exit prep.
PrivSource - Deal aggregator for lower and middle-market listings.
ProjectionHub - Access to 50+ CPA-developed financial projection templates. 25% discount using code “duedilio” at checkout.
Logology - Best automated logo & brand identity tool I’ve come across.
DeepBench - Access a cutting-edge expert network. $200 discount.
OpenPhone - The best business phone solution that I have found. $20 credit.
Eloquens - Knowledge marketplace. I’ve bought a few guides and templates here.
Deal Flow Scout - Peer-to-peer deal flow exchange. Free, open, transparent.
Deal Sourcing Guide - A directory I put together of online marketplaces, brokers, DFY deal flow, and more.
That’s all for this issue of The Business Inquirer!
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