This week the team breaks down a 19-year-old e-commerce surfing accessories business with $3.4M in revenue and $315k in profit — but is the $1M asking price plus $1.5M in inventory worth it?
Business Listing - https://synergybb.com/listings/established-helicopter-installation-company-in-mo/
Sponsors:
⚙️ This episode is sponsored by Inzo Technologies — IT solutions built specifically for small businesses and acquisition entrepreneurs. Get a complimentary IT audit of your target business at: https://inzotechnologies.com or email Nick directly at nick@inzotechnologies.com.
💸 This episode is also brought to you by Capital Pad — the marketplace connecting acquisition entrepreneurs with investors. If you're looking to raise capital or invest in small businesses, visit: https://capitalpad.com
Episode Description:
In this episode, Bill D'Alessandro, Heather Endresen, and Mills Snell dig into a fascinating 19-year-old e-commerce business selling surfing accessories. With $3.4M in revenue, $315k in profit, and a $1M asking price (plus a whopping $1.5M in inventory), the team debates whether this old-school online retailer is a smart buy or a capital trap. They discuss Amazon dependence, inventory consignment strategies, growth opportunities in marketing, and the risks of low-margin e-commerce models. This is the quintessential e-commerce deal breakdown!
Key Highlights:
- Overview of the 19-year-old surfing accessories e-commerce business
- $3.4M revenue with $315k in EBITDA
- The challenge of $1.5M in inventory and low margins
- Why consignment inventory might be essential to closing this deal
- Breakdown of Amazon vs. DTC revenue mix
- Marketing opportunities: email lists, Meta audiences, SEO
- Risks of thin-margin resellers vs. owning your own products
- Financing challenges with SBA lenders and consignment inventory
- How lifestyle businesses create opportunity for acquisition entrepreneurs
- Bill’s real-world insight on consignment deal structures
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