In this week's episode of Acquisitions Anonymous, we’re looking at a content-based business listed on Quiet Light—a recipe site with six years of future content ready to go, pulling in over 50 million page views in the past year. Joining us today is Chelsea Wood from Acquisition Lab, who shares her expertise on the potential of this business.

What We Thought:

Strong Metrics but Lacks Clarity on Revenue Sources

Heather pointed out the lack of clarity about how the business earns its revenue. Is it primarily through ads, affiliate marketing, or a mix of both? Since the website is recipe-focused, it’s unclear if it relies on affiliate marketing tied to ingredients or if it’s purely ad-driven. This information would significantly influence how sustainable its income is, especially in a competitive content market.

Why Sell Now?

Chelsea voiced an unusual concern—why is the owner selling if the business is so profitable? With six years of content ready and such high margins, the site could continue to generate strong earnings without much effort. The skepticism here lies in whether there’s something beneath the surface that’s motivating the sale.

Chelsea was also wary of the asking price. A nearly 5x multiple is steep for a content-based business, especially in an environment where many such businesses are struggling. That said, the evergreen nature of recipes makes it a little more reliable than other types of content, like travel blogs.

Red Flags

• Unclear Revenue Streams: We don’t have a solid breakdown of where the revenue comes from, which is crucial for evaluating long-term viability.
• Potential Personality Reliance: If the founder's identity is tied to the brand, there could be a drop in engagement after the transition.
• High Asking Multiple: At 4.91x, the multiple feels high, particularly given that content-based businesses are generally valued lower.
• Why Sell Now? The timing of the sale is suspicious, considering the potential for continued earnings.

Green Flags

• Strong Engagement Metrics: 50M page views, a 44% email open rate, and massive social media following all point to a loyal audience.
• Evergreen Content: Recipes don’t go out of style, giving the site a steady, long-term value proposition.
• Six Years of Content: With 2,000 recipes ready to publish, a new owner has a major asset in pre-produced content.
• Owner’s Low Time Commitment: The current owner only works 4-5 hours per week, making it a semi-passive income opportunity.

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In today’s episode of Acquisitions Anonymous, we take a deep dive into a unique business—a 100-year-old salad manufacturing company in Los Angeles County. Hosts Michael Girdley, Bill D'Alessandro, Mills Snell, Heather Endresen, and special guest Chelsea Wood from Acquisition Lab discuss the ins and outs of this $4.6 million deal. From potato salads to military contracts, this business has strong growth potential, but with a few possible red flags. The team explores potential buyer profiles, operational challenges, and whether this company is ready for a modern makeover.

Thanks to this week's sponsor:

Acquisition Lab and their team have been longtime supporters of the pod.

Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood, chelsea@buythenbuild.com and mention us ;)

Key Points Discussed:

1. The Business Breakdown – Overview of the salad manufacturing company's performance, including its product mix and client base.

2. Growth Opportunities – How the business has grown from $6 million to $10.5 million in sales in four years and what potential lies ahead.

3. Operational Concerns – Challenges with scaling, customer concentration, and the company’s long-standing history.

4. The Real Estate Factor – How LA real estate could impact the business's profitability and future growth.

5. Diversification & Expansion – The possibilities of expanding the product line to healthier or more modern offerings.

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In this episode of Acquisitions Anonymous, hosts Bill D’Alessandro and Heather Endresen evaluate a private jet charter business with a $2 million EBITDA. They explore whether the company operates on an asset-light model by leasing jets or owns the aircraft, and how each model affects profitability. The discussion covers key aspects of FAA Part 135 certification, maintenance, and the growing demand for private jet services. With insights into corporate, government, and individual clientele, Bill and Heather dive deep into the complexities of the private aviation industry, including Bill's fascinating story about the origins of EBITDA.

Thanks to this week's sponsor:

CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.

Find out more at: https://cloudbookkeeping.com/

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