Acquisitions Anonymous - #1 for business buying, selling and operating Best of Acquisitions Anonymous - Episode 214: Worm Farm
Dec 16, 2025
The hosts dive into an eye-popping worm farm in rural California, boasting an astonishing $1.5M cash flow on a $1.8M listing. They explore the unique business model involving live worms, castings, and premium soil blends. E-commerce pricing reveals surprisingly high margins on worm sales. Concerns arise about the lease structure and inflated financials, prompting discussions on due diligence and financing options. With operational staffing considered, the hilarity of the situation is matched only by the potential profits!
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Too-Good-To-Be-True Financials
- The Worm Farm lists $2.5M revenue and $1.45M cashflow at a $1.8M ask, implying an unusually low multiple of ~1.2x.
- Such extreme margins and pricing are a red flag that merits deep diligence on reported numbers.
E‑Com High AOV Powers Margins
- The business sells high-AOV e-commerce items like worms and castings, with four pounds priced at $150.
- E-commerce margins on lightweight, high-value goods can drive outsized cashflow even for farm-based operations.
Buying Live Worms On Amazon
- Heather ordered live worms on Amazon and received them packaged with damp bedding to survive shipping.
- She added them to her clay soil garden and reports an ongoing colony and improved soil aeration.