#5: Weekly update on digital private equity
#5: Weekly update on digital private equity
Deal alerts and interesting finds from this week.
Welcome to Dealsflow.com, bringing you up-to-date with what’s been going on in the world of digital private equity. Inquiries, feedback, or comments? Write to us at hi@dealsflow.com.
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🔦 Assets we looked at this week
Bobblegr.am ($32,285 on Flippa.com)
Personalized Wedding Cake Toppers
🔬 What we like & don't like:
$1,682 net profit per months (19x multiple), 7 years old, 50% profit margins
Good niche (lots of $ involved in a wedding)
High average order value ($180-200)
Good SEO (7.05k backlinks, 3k organic keywords)
BUT: dependency from one single supplier 🙅
🌱 How we would grow it:
Dedicated paid media strategy (e.g. new channels, lookalike targeting)
Our verdict: ★★★☆☆
We loved the nice (and never thought that cake toppings can be so expensive), but would question the supplier relationship.
Different category, but still interesting: a domain with already existing authority
OrderUp.com ($6,800)
Auction ongoing (click here).
Image of the old business, which ran OrderUp.com
Existing links from Washing Post, Bloomberg, Airbnb and more
🔬 What we like & don't like:
Pretty good existing backlink structure
Catchy name and previously used for delivery start-up
BUT: You need to invest time and effort to grow this website 🙅
🌱 How we would grow it:
Content blog about all-things cooking, kitchen & food, which earns affiliate commissions.
Our verdict: ★★★★☆
If you are into building websites on your own, this domain can be a great start.
Other deals we found interesting:
Undisclosed SaaS company (details on NickGray.net)
$1,000,000+ ARR, 70% Profit Margin
What are your thoughts?
Leave your comments on the web version of this article or reach out to me at hi@dealsflow.com.
🗞 News & interesting finds
The Messy Marketplace: Selling Your Business in a World of Imperfect Buyers - a book I am reading and enjoying this week.
Instant Domain Search: simply amazing for checking domain availabilities quickly.
Online Business Trends for Buying and Selling Websites in 2020: Multiples went up by 8% on average, while sales prices increased by 54% on Empire Flippers.
Quiet Giants Trailer by Quiet Light Brokerage: A movie, yes a movie about acquisition entrepreneurship. Nathan Sing went from staring at pastures each day at work, to starting and selling multiple successful businesses.
Why does everyone recommend Ezoic? They might be good, but they also pay 3% of a publisher’s total revenue on all traffic they send through Ezoic for the lifetime that they use the Ezoic platform. 🤑
💪🏻 Improve your due diligence skills
Asset vs. Share Deal: Should I buy the whole company or just the assets? Does it make a difference? I just wrote a new article about both options.
How to Buy, Grow, and Sell Small Companies: Take the course by Ryan Kulp. I did too and like it.
Recommendation by Shiva (owner of Chainfuel.com) in our new group on IndieHackers: “Prices in auctions [on Flippa.com] end up usually on the higher side. Look for neglected projects that still have good activity from users. This will be the most profitable as you can negotiate a better deal.
👌 Quote of the week
It's waiting that helps you as an investor, and a lot people just can't stand to wait. If you didn't get the deferred-gratification gene, you've got to work very hard to overcome that. Charlie Munger
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