FAMILIARITY WITH WEB-BASED BUSINESS DEALS?

For most of the past year, I have been looking at pretty traditional search-fund type businesses: HVAC, plumbing, professional services, etc.

However, I have recently been looking at and running across more web-based businesses. You know the type: a few years old, 50%+ margins, SaaS-type analytics businesses or e-commerce, owner only spends 4hrs a week running it, 0-5 employees, <$1M revenue, etc.

Do people have experience with vetting these types of businesses? It would be great to hear how you approach the limited history, rapid growth, and figuring out whether it's real or some sort of hoax. I'd also be interested to hear your approach to speaking with SBA lenders about these businesses: limited historical revenue but opportunity in rapidly expanding niches.

Thanks!



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