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Acquisitions Anonymous - #1 for business buying, selling and operating

Recipe Website With 4.2 Million Page Views a Month For Sale!

13 Sep 2024

Description

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 SourcesHeather 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 FlagsUnclear 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 FlagsStrong 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.Subscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [email protected]

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