Looking for intro to online business brokers

May 03, 2021

by a searcher from City University of New York, Brooklyn College in Austin, TX, USA

Hello,

I am looking to establish an intro with online business brokers.

We had a successful exit of Amazon business 12/20, and are now actively looking for an online business acquisition.

Criteria:

1) SaaS, membership site, content based sites, recurring revenue site, service site, etc, but I am not looking for Ecom. I have been @ Amazon for 6+ years, so this is the reason not currently looking for Ecom.

2) $1-5M , with approximately $500k-$1.4 EBITDA

3) U.S. Only

4) We are an accredited investor

5) Would consider equity to help owner for growth

6) Not looking for a startup, so MIN of 3 years, 2 years financials

Let's arrange an intro call.

Thanks!

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Reply by an intermediary
from University of Memphis in 5000 Linbar Dr, Nashville, TN 37211, USA

1. There are two sides to this issue. 1. Many brokers will take any listing they can sign up, even if many are poor companies with limited attraction to buyers interested in a sizable, successful business. This results in limited time to address all the inquires and to vet the buyers 2. The more important issue for most searchers is the unrealistic expectations: a. that they can raise capital after they find and negotiate a good deal b. that their search criteria mimics more of a private equity requirement than what is normal in most lower market businesses for recurring revenue, customer concentration, management capability, net margin percentages and reasonable multiples c. that their limited experience in a corporate or financial structure provides them sufficient capability to effectively manage a multi-million dollar business d. that they can buy a business with 10% equity and take out sizable compensation 3. If you are capable of running a business you understand you have to dive into the bowels of it, not be just the manager. a. You will spend enormous number of hours learning and you will encounter issues you did not expect and have no history to address so set up a personal Board of Directors that are diverse in experience, age and background###-###-#### They can be a source of critique, advice and solutions during your search and after you close your transaction b. Have 15% - 20% of equity immediately able to you c. Be realistic about your experience, skills and capacity

Reply by a professional
from Bentley College in Miami, FL, USA

Hey - I publish The Business Inquirer where I highlight such deals. You can also view a comprehensive list of online business brokers here: https://thebusinessinquirer.substack.com/p/the-business-inquirer-013

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