I’m excited to announce a recent small online business acquisition to add to our growing portfolio of online businesses.
My team and I are taking over the responsibilities of LetterStack.co, a newsletter site that shares well-curated resources with other newsletter creators.
This acquisition was brokered by MicroAcquire, an online business acquisition broker that’s upending the traditional ways companies are bought and sold. This was my first transaction through their marketplace and, overall, a pleasurable one.
It was a pretty straightforward transaction, mainly due to the low cost (less than $10k). We were able to do the asset transfers in about 60 minutes. Leaving only a few carry-over items to address over the next few days.
But by the end of the week, my team was able to send out a new newsletter. That successfully finalized the acquisition process. I created a new Twitter account and got some other baseline items in the works to hopefully provide additional value for future content creators.
Not bad for a week’s work!
Thoughts on Broker MicroAcquire
That said, there are some things I don’t like about MicroAcquire’s marketplace for online business acquisitions. For example, they seem to provide sellers with little to no background on valuations. Therefore, you see businesses making $5,000 a year asking for 30x annual profit selling prices…all based on “the work we’ve put into this amazing business that is just ready to explode”.
Unfortunately, a lot of buyers won’t reach out to the seller(s) when the broker isn’t educating the seller in the first place. Buyers have enough to do when considering an online business acquisition. We don’t have time to also educate sellers that have unrealistic expectations. You don’t see real estate agents saying, “Sure, list your house for 10x of its market value. We’ll get a ton of qualified buyers inquiring about the property, no worries...”
Now, how do I step off this high soapbox I’ve crawled up onto?…OK, I’m down now.
Thanks and Onward!
Stick tap to Kyle Steinmeyer for the work he did to make LetterStack.co what it is today. The same goes out to Paul Metcalfe for starting the site in the first place.
If newsletters are your thing, you could do worse than signing up for (or contributing a resource to) LetterStack and checking out past resources. I used the “Improve Deliverability” resources to get all the email validation and deliverability working correctly. I can vouch that the resources really do work.
And if online business acquisitions are your thing, too, you should sign up for my newsletter, Point of Frew.
