Website/internet businesses - lets discuss

searcher profile

September 07, 2022

by a searcher from Xavier University of Louisiana in Houston, TX, USA

Does anyone have an opinion on website/internet businesses? What are you are actually buying and does it really throw off cash if you have to constantly buy new inventory? How do you finance the acquisition of these businesses? (debt or equity)?


Returns seem nice but the cash conversion cycle is upside down if you don't place big orders. Debt financing seems hard to come by and the returns are don't seem to compensate for the risk in an all equity deal.

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commentor profile
Reply by an intermediary
from University of Pennsylvania in Denver, CO, USA
I acquired an ecom store that sold only on AMZ US. We diversified it slightly, still predominantly AMZ. It be came highly commoditized quickly. We exited successfully since we grew the product line significantly a year ago to an aggregator. Happy to chat on it if helpful.
commentor profile
Reply by a searcher
from Oregon State University in San Antonio, TX, USA
When you say "website/internet" business, are you limiting your question to eCommerce sites? To me, website/internet can encompass many other business models - content, SaaS, PaaS, marketplace, blogs, lead gen, etc., just to name a few.
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