2 Advanced Online Business Market Places & a DEEPER Dive Into Using PPMs to Buy or Sell a business.
This Week On How2Exit podcast and Axial Market CEO, Flippa CEO and PPM - Raising Funds to Acquire or Sell a Business
Together with ITX M&A Marketplace - click here to sell your MSP Company (Sponsor)
Peter Lehrman is the CEO of Axial.com, an internet platform for buying, selling, advising, and financing private companies. He explains that he stumbled into the opportunity to work part-time with a private equity firm while in graduate school, and this experience showed him how difficult it was to find reliable information about small businesses. Feeling inspired, he decided to start Axial with the goal of solving this problem for the market at large.
Peter Lehrman and Ron Skelton discuss how Axial helps sellers, buyers and advisors. Lehrman explains the two primary things that Axial tries to help sellers with. The first is to give sellers data and empirical information to help them narrow down the funnel of potential brokers when they decide to sell their business. The second is to give buyers data and empirical information to help them find companies to invest in. Finally, Axial helps advisors by connecting them with businesses that need their brokerage services. All in all, Axial is a comprehensive ecosystem that is beneficial for all its users.
Business owners looking to sell their business face three main questions: How much is my business worth, who should help me represent myself in the sale of the business, and who are the ideal buyers I should be talking to? To answer the first two questions, Axial provides free data on the productivity, performance, and track records of brokers and M&A advisors. As for the third question, Axial can provide sellers with immediate access to a subset of buyers who are most potentially relevant to them so sellers can see data on the buyers, the kinds of transactions they have done, and why they are interested in businesses like the sellers. All of this is done to help the seller make an informed decision and find the right buyers for their business. Listen Here: (57:21)
Read our notes on this interview: 12 Lessons We Learned From Interviewing Peter Lehrman CEO Of Axial About Selling Private Companies And The Necessary Preparations
For an Awesome source of information and great articles on buying, growing, and selling a business, check out: Acquisition Aficionado Magazine’s Latest Issue (Sponsor)
Ron Skelton welcomed Blake Hutchison back to the How2Exit podcast, as the CEO of Flippa, which is a marketplace to buy and sell online businesses and digital assets. Blake explained that their mission is to democratize the exit and to help people and enable business ownership. He also noted that they sell around 12,000 online businesses and digital assets per annum, which can include Shopify businesses, WordPress blogs, and iOS or Android apps. Ron was impressed by the fact that Flippa has sold over 300,000 digital businesses since its founding in 2009, as well as the fact that they are constantly innovating and adding new products and services to their existing products.
Flippa has improved its due diligence services and, since June, has added nine new integrations to the website. This includes QuickBooks online, Zero, Magenta, BigCommerce, Shopify, Stripe, eBay, Amazon and WooCommerce for E-commerce. This allows online business owners to connect and expose their data so that buyers can use this data to make informed decisions about the performance of the assets. Additionally, they have added Google Analytics, SCM Rush and a variety of advertising sources that buyers can use to assess the asset. Lastly, they have added insights to help buyers make informed decisions.
The conversation that came next was about a feature called Flippa Insights that helps buyers compare assets. It lets them compare the asking price with similar assets that have been sold in the past, as well as key metrics such as refund rate, average order value, churn, lifetime value, annual recurring revenue, monthly recurring revenue, page views, and bounce rates. This gives buyers valuable information to help them make informed decisions when purchasing an online business.
Listen Here: (45:35)
Read our notes on this interview: 9 We Learned From Interviewing CEO Of Flippa, Blake Hutchison About Innovations In Buying And Selling Digital Assets
Attention Business Brokers, Advisors, Acquisition Entrepreneurs, and SMB Owners!
Do you want to stay ahead of the game in the SMB M&A market? The Hub is the solution you need! This curated newsletter brings you the best highlights from blogs, podcasts, YouTube, and news sources, all in one place. The HUB
Founding Member Shout-Out
Thanks to Sweetview Partners, an Acquisitions company looking to buy Texas-based B2B companies in the $1MM - $30MM revenue range. Click on the logo to check them out.
This week’s “DEEPER” Dive:
Use A Private Equity Fund to Buy or Sell Your Next Business
Ace Chapman, an acquisitions entrepreneur and private equity fund manager, shares the key to creating a private equity fund that you can use to acquire businesses. Private equity funds are proven to accelerate business acquisitions and rollups.
We interviewed Ace Chapman in episode “Mentor Mini Series E6”- Watch it here.
In this article, we talk about raising capital to acquire businesses. In the interview, Ace explains he helps his buyers raise capital to acquire his businesses when selling. To learn more about this process and PPMs (Private Placement Memorandums)…
Read the full article with a paid account by the Author, Yoseph Israel; click the share below and tag me in your share to get a paid account for a week, refer 3 people (DM me who you got to sign up), and get a paid account for 90 days. Get 10 signups - FREE FOR A YEAR.