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Will Heather get a kick from a $20mm online karate training school? - Acquisitions Anonymous 241

Oct 31, 2023
In this episode, hosts discuss an online martial arts education platform, its rapid growth, and revenue numbers. They speculate on the business model, private equity involvement, challenges of online learning. They also explore the impact of karate influencers on the industry and the role of social media in martial arts training.
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INSIGHT

Strong Growth Post-COVID

  • The business shows rapid growth post-COVID with margins increasing alongside revenue.
  • It has nearly doubled sales in three years while maintaining strong EBITDA growth.
INSIGHT

Online Martial Arts Learning Model

  • The martial arts platform offers subscription courses accessible anywhere on multiple devices.
  • Students can earn ranks by submitting videos for instructor review, enabling remote progression.
INSIGHT

Affiliate Fees Impact Margins

  • The company's heavy reliance on affiliate marketing drives costs, explaining lower EBITDA margins.
  • They likely pay out 50%-70% commissions to influencers to generate sales and traffic.
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