The Business Inquirer #110
The Business Inquirer #110
In this week's issue, I highlight two listings including a gas station with a diversified revenue stream and a newsletter covering AI.
Hello Friends!
Short one this week as I didn’t see many listings that looked interesting.
In this week’s issue:
💼 Online Service, Media, Marketplace - 1 listing
🏡 Main Street, Offline, Other - 1 listing
⚒️ Tools & Resources
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💼 Online Service, Media, Marketplace
AI Newsletter (Tiny Acquisitions) - $6.4k
AI Bulletin is a daily newsletter covering the latest news and tools in AI
2,751 subscribers
Sounds like the newsletter is profitable
Revenue: unknown
Profit: unknown
Margin: unknown
Multiple: unknown
✅ What I Like
A newsletter that covers a young, rapidly growing market that people are trying to learn about. Nice design and I like the way it’s written.
Take a look at The Milk Road newsletter that covers crypto. Something similar would work for AI or any other emerging tech that people are curious about. I’d copy what they are doing.
For the right person, this could be an interesting project to take on.
❓ Questions & Concerns
Very young project. Important to verify the subscriber count, open rate, and CTR. This should be easy to do on Substack.
For a very young newsletter like this, it can be difficult to figure out the right valuation. Tough to say if $6,400 is overpriced or not without knowing the actual revenue.
🏡 Main Street, Offline, Other
Branded Gas Station, Laundromat, Car Wash (BizBuySell) - $600k
Located in Covington, LA
Includes 2,400 sqft convenience store, 1,200 sqft laundromat, and 3,000 sqft 4-bay coin-operated car wash
$180k/m average merchandise sales
Rent is $14,000/m but can be purchased for $2.1M
Revenue: $5.6M
Profit: $520k
Margin: 9%
Multiple: 1.15x
✅ What I Like
Recession-proof business with some pricing power. Diversified revenue streams from the gas station, convenience store, car wash, and laundromat. I imagine that getting financing for a gas station acquisition that has diversified revenue would be easier.
If the laundromat and car wash are coin-operated then there may be an easy revenue opportunity if you convert them to accept credit cards.
❓ Questions & Concerns
I did a bit of research and here are the notes:
Verify the numbers by measuring traffic. Park across the street on a weekend and count the number of customers.
Look at the water bill to get a true sense of how busy the place is
Make sure that financials break out the revenue between fuel sales, car wash, convenience store, and laundromat. Fuel sales are very low-margin and volatile.
Are there any cash sales and how are they handled and recorded?
Request a property and environmental survey to make sure there are no issues
Figured out who the clients are - locals, commuters, a mix.
Check local crime statistics. Any issues with this property?
How much competition is there?
For further reading:
⚒️Tools & Resources
I want to share some tools & resources that I have found helpful. Please note that some of these may contain affiliate links. This means that I may receive compensation if you sign-up and use them.
PrivSource - PrivSource helps you source deals and connect with transaction partners without ever paying a success fee.
BizNexus - Marketplace + off-market origination in one platform. The marketplace averages about 10k active listings & pre-CIM opportunities, and the off-market origination focuses on data & multi-channel. Local Boston company and I consider the founder (Adam Ray) a friend.
X5 Deals - Proprietary deal sourcing. They do the outreach and send you relevant, actionable deals directly into your inbox.
Import Dojo - a newsletter that sends eCommerce and Amazon FBA businesses for sale to your email inbox. They send deals each Wednesday at 9:00 AM CST.
Kumo - Find every deal in one complete platform. Spend less time sourcing deals and more time closing them. Kumo aggregates 180K+ business listings into one easy-to-use platform.
Cerebro Capital - Cerebro has a network of 1,500+ lenders who can provide debt financing for your acquisition, refi, etc. $500k minimum.
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.
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.
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Important Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. This newsletter may link to other websites and certain information contained herein has been obtained from third-party sources. While taken from sources believed to be reliable, it has not been independently verified. The Business Inquirer makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. References to any companies, securities, or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any business, tax, or investment decisions. Content in this newsletter speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.