The Business Inquirer #081
In this week's issue, I highlight five listings including an outdoor apparel & equipment retailer, a Google Sheets 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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Hello Friends!
In this week’s issue:
🛒 eCommerce - 2 listings
☁ SaaS - 2 listings
🕸 Content/Service/Other - 1 listing
🛠 Tools & Resources
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🛒 eCommerce
Contemporary Home & Baby Accessories - $149k
For sale is an 8-year-old e-commerce brand selling contemporary home and baby accessories.
Sold on Amazon & Etsy; 200 SKUs; $102 AOV;
Husband & wife team spends 20hrs/week on the business;
TTM Revenue: $123k; Profit: $42k; Margin: 34%
Asking: $149k; Multiple: 3.55x
✅ What I Like
Well-aged business with operating history. Evergreen niche that’s always in demand. Very engaged target audience that spends money. There may be some pricing power here. I like that the products are sourced in the USA. Nice margins and high AOV.
❓ Questions & Concerns
What’s prevented the current owners from scaling this business further over 8-years? How are they acquiring customers and what’s the CAC? Have COGS increased over the last few years? How does the competition compare? Is DTC a viable channel?
You can view the listing on Seller Force.
— — — —
Equipment & Apparel for Outdoor Sports - $4M
For sale is an FBA business selling equipment and apparel for outdoor sports and recreation.
Sold primarily through Amazon; Easy to relocate;
Steady 15-20% sales growth Y/Y;
TTM Revenue: $6.3M; Profit: $1.5M; Margin: 24%
Asking: $4M + $1.2M Inv; Multiple: 2.67x
✅ What I Like
Evergreen niche. Easy to relocate. Steady sales growth. Decent margins. Good valuation.
❓ Questions & Concerns
How did COVID impact this business? What do normalized numbers look like? How's the supply chain? Is there seasonality in the business?
You can view the listing on Bay State Business Brokers.
☁ SaaS
Facebook Messenger & Instagram Automation - $750k
For sale is a 5.5-year-old SaaS that allowed businesses to increase the number of leads they get from their Facebook and Instagram pages. Primarily used by influencers.
Competitors: Manychat, Chatfuel
$780k ARR; 15% annual growth; 4-person team;
TTM Revenue: $1.8M; Profit: $750k; Margin: 42%
Asking: $750k; Multiple: 1.00x
✅ What I Like
Interesting business that has some operating history and good traction. The valuation is reasonable whether you look at profit based on TTM revenue (1.00x) or ARR (2.29x). Sellers specialize in FB ads so there may be other, untapped opportunities to acquire customers.
❓ Questions & Concerns
I’d want to understand the typical SaaS metrics such as conversion rates, churn, and CAC. Pricing for Facebook ads has been increasing so there needs to be a plan in place to try other acquisition channels. Is the current team willing to stay on? What type of tech upkeep is required? Who handles customer service and how does that look?
You can view the listing on MicroAcquire.
————
Google Sheets Formula Builder - $15k
For sale is a 1-year-old micro-SaaS that is an add-on to Google Sheets. It lets users build and edit complex formulas in Google Sheets easily.
Pre-revenue; 16,844 users;
Asking: $15k
✅ What I Like
That’s a lot of users in a short period of time. The add-on grew quickly so I assume that there is a good amount of demand.
❓ Questions & Concerns
Risky acquisition without any revenue. How many users are actually using the product? What’s a fair assumption for converting free users to paid? What’s the overall TAM for a product like this? Tough to put a value on this business. In my view this can be valued at $5k to $8k simply based on the number of uers.
You can view the listing on Microns.
🕸 Content/Service/Other
NY Moving & Storage - $275k
For sale is a Kings County, NY-based moving & storage business where the owner is looking to retire.
Metro NY location; 8FT/20PT employees;
TTM Revenue: $1.1M; Profit: $300k; Margin: 27%
Asking: $275k; Multiple: 0.92x
✅ What I Like
Evergreen niche. Employees are already in place. Decent margins. Good valuation.
❓ Questions & Concerns
Not a lot of detail about the business. How involved is the owner? Are employees willing to stay on with the new owner? How easy is it to hire for this business? How are clients acquired? How do client reviews look?
You can view the listing on BizNexus.
🛠 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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