Heyo,

I wanted to walk through a few deal structures I've personally seen this year.

$315k - ~3x - 100% cash upfront (typical with deals of this size) - eCommerce

• $102k SDE

• Lots of growth opportunities

$2.2M - 3.5x - 78% cash upfront, eCommerce

• No investors

• SBA Loan

• ~10% Seller note

$0 - Assuming the Debt - Business lost $200k the prior year, content site

• Strategic acquisition

• Bloated company and poor business model but 10+ year old business

• The business will probably scale to $200k+ in profit/SDE the first year

$4.5M - 3.4x SDE - HVAC

• Came with lots of employees

• Searched used investors

• 20+ year history

• Came with a GM - *this is huge here as it frees up the owner

$830k - 2.7x - Agency

• 10 years old but 4 years at current subscription model

• 100+ clients

• No investors, used SBA loan

• 18-20% seller note

Hope this is food for thought.

We are starting something new in this newsletter this week. From now on, expect 3 deals I have found in the market!

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1. Long-time, very profitable, ocean recreation business

Revenue: $1.6 M

Cash Flow: $871k

Asking Price: $2.3 M

Of course, this is in Kauai. It includes $500k+ of FF&E which is awesome. 20+ years old, a few employees, and travel is bonkers to Hawaii right now.

What I don't like is that it's small for Hawaii standards and only comes with 1 raft. You are probably competing with much bigger companies and budgets. Get creative in this niche as you can grow and get capital to expand. Partnerships with hotels and locals. It may not be big enough to live in Hawaii. $400k of $800k is going to debt while still trying to grow the business and live in Hawaii.

I do like the multiple. Oh, and....."The Seller has an additional "raft" which could be sold to a buyer.".

Click Here To View The Listing »

2. 5-Yr Old Display Advertising and Affiliate Content Site in the Parenting Niche

Revenue: Unknown but close to SDE

Cash Flow: $114k

Asking Price: $344k

What I like here is that it's a content site (high margins), is on Mediavine (100k+ pageviews a month), and has some age. Where you need to dive in is how this performed during the last Google updates. Where I see most content sites falling behind is not doing enough on the newsletter game. Great niche too...if you can find out

Click Here To View The Listing »

3. Playstation Video Game Developer w/ 74% Net Profits, +45% Increase in Game Library in 2023

Revenue: $866k

Cash Flow: $642k

Asking Price: Make an Offer

Who hasn't wanted to own a bunch of Playstation games?

What I like about this is the high margins and library here. I don't know anything about video games or the industry so that's where you can get into trouble but the passive nature of this business is pretty cool. As they are building out the library, someone with licensing skills could go out and license all the latest Netflix and YouTube shows to make video games out of them.

There was a mobile app company that did this for shows like the Simpsons and made hundreds of millions.

Click Here To View The Listing »