The Business Inquirer #080
The Business Inquirer #080
In this week's issue, I highlight three listings including an eldercare staffing agency, a cannabis job board, and one more listing.
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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Hello Friends!
In this week’s issue:
🛒 eCommerce - 1 listing
☁ SaaS - 1 listing
🕸 Content/Service/Other - 1 listing
🛠 Tools & Resources
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🛒 eCommerce
LEGO Minifigure Toys - $1.2M
For sale is 9-year-old Minifigureland which is an ecommerce brand selling miniature figures for LEGO sets.
Sold through eBay and Amazon; 11k SKUs;
Ranked top 3 Amazon seller in the category; 4.8k reviews;
2 FT employees and 1 PT; Owner works 40-45 hrs/week;
TTM Revenue: $7M; Profit: $1.2M; Margin: 18%
Asking: $1.2M; Multiple: 1.02x
✅ What I Like
A lot of operating history. Evergreen niche. Leader in its category. Strong reviews provide a moat. Opportunity to sell DTC on own website. Good valuation.
❓ Questions & Concerns
Why is the owner selling? The owner works full-time in the business. Low-profit margin means there isn’t a lot of room to maneuver. I’d want to understand the legal aspects of this business. How can it sell Batman figures without a license? Who creates new products? How are customer service, logistics, returns, and fulfillment handled? How strong is the supply chain? A lot of competition in this space.
You can view the listing on BizBuySell.
☁ SaaS
Cannabis Industry Job Board - $2.5M
For sale is a 1.5-year-old job board that helps qualified candidates find opportunities in the cannabis industry.
Competitors: Vangst, Flowerhire
SaaS with a freemium model; 3 pricing tiers;
TTM Revenue: $350k; Profit: $120k; Margin: 34%
Asking: $2.5M; Multiple: 20.83x
✅ What I Like
Job boards can be great businesses once scaled. Doesn’t require a lot of upkeep or investment. Cannabis is an evergreen (pun intended) niche that’s rapidly growing. There’s decent traction for a young business. I like that there are video profiles. I think this is a very helpful feature for this industry where the resume may not be as important. Sellers are open to various deal structures.
❓ Questions & Concerns
A young business that doesn’t have a lot of operating history. Valuation is crazy and sellers may just be testing the market. Not clear if employers or candidates are monetized. How are clients acquired? What’s the strategy to scale this business? Not sure SaaS is the right monetization strategy for this type of business. There may be a limited TAM due to slow legalization efforts. A lot of diligence is required in this business.
You can view the listing on MicroAcquire.
🕸 Content/Service/Other
Eldercare Staffing Agency - $120k
For sale is a 1.5-year-old staffing agency that provides in-home care to elderly and disabled individuals. Also, they provide non-medical transportation.
Clients are acquired through well-known partners.
15-person team in place; Runs on Adacare scheduling software;
TTM Revenue: $350k; Profit: $111k; Margin: 32%
Asking: $120k; Multiple: 1.08x
✅ What I Like
Clearly, I like the valuation here. The listing mentions they’re on track to go from $350k to $500k revenue this year. This makes the valuation even more attractive.
❓ Questions & Concerns
I assume there are a lot of details missing. How can a $350k business have 15 employees? Where is this business located? Is this a Medicaid payor business? The listing mentions that $28k in debt is being paid off through lawyers. What does this mean?
You can view the listing on MicroAcquire.
🛠 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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