Weekly Recap

E217: The Current State of Buying and Selling E-commerce Businesses with George Moulos

About the Guest(s):

George Moulos is an entrepreneur and the founder of Ecommerce Brokers, a company specializing in buying and selling online businesses, especially within the e-commerce, agency, and SaaS spaces. With a background that ranges from starting businesses at a young age—including Facebook groups and affiliate marketing—to building and exiting various digital assets, George now helps others navigate the intricacies of online mergers and acquisitions. His firm assists a range of clients from first-time acquirers to private equity firms. George's dedication to old-school methods of relationship-building coupled with his innovative approach to the online space has led Ecommerce Brokers to success, including notable deals and acquisitions.

Episode Summary:

In this enlightening episode of the How2Exit podcast, host Ronald Skelton engages with George Moulos to unravel the complexities of buying and selling businesses in the digital realm. George's journey from young entrepreneur to established online business broker presents a multitude of insights for those interested in e-commerce transactions.

George dives into his early beginnings and entrepreneurial streak, explaining how his work ethic and vision led to his first business exits and eventual specialization in e-commerce business brokering. He provides valuable insights into current market trends and offers strategic advice for both buyers and sellers in the online business space.

Key Takeaways:

• The Buyer's Advantage: The current market is trending in favor of buyers, making the next twelve months an opportune time for acquisitions.

• Seller's Market Shift: While sellers have faced challenges in recent years, the market is slowly improving for them. This shift signifies potential balance restoration in e-commerce M&A.

• Importance of Due Diligence: Buyers should approach acquisitions carefully, utilizing advisors, accountants, and attorneys to ensure a secure transaction.

• Shopify Over Amazon: George emphasizes investing in D2C businesses on platforms like Shopify that allow ownership of the customer relationship over reliance on third-party platforms like Amazon.

• Financing Strategies: In light of high interest rates, George suggests exploring avenues such as SBA loans, seller financing, and earnouts to facilitate better deals in acquiring an e-commerce business.

Notable Quotes:

• "At the end of the day, you need to own your own business. You can't build your business on someone else's platform."

• "The weird thing that we've seen is the few good businesses that are listed, we actually still have competition because the core solid e-commerce business buyers that were here before... they're still here buying good businesses."

• "A lot of people are now slowly realizing if my options... is property, stocks, crypto, or running an online business... this is still a better option than all the others."

• "Small, boring businesses with a technical twist. Great investment."

Article:

Thriving in the E-Commerce M&A Space: Strategies for Buyers and Sellers

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E216: David Lynch: Building and Selling a Successful 8-Figure Healthcare Business

About the Guest(s):

David Lynch is an entrepreneur from the UK who started a business in the healthcare sector. He began his journey by selling mobility and disability products from his spare room. Over the course of 11 years, he grew the business to achieve eight-figure revenue and successfully sold it to a private equity-backed buyer. David is now actively pursuing acquisitions in the healthcare and facilities management sectors through his investment group, 41 Kong.

Episode Summary:

In this episode, Ronald Skelton interviews David Lynch, an entrepreneur who built a successful healthcare business from scratch and sold it to private equity. David shares his journey of starting the business from his spare room and growing it organically through contracts with the NHS and other local authorities. He discusses the challenges he faced in implementing systems and processes to prepare the business for sale and highlights the importance of having a clear vision and exit strategy from the beginning. David also talks about his current venture in acquisitions and his plans to combine organic growth with strategic growth in the healthcare and facilities management sectors.

Key Takeaways:

• David Lynch started a healthcare business from his spare room and grew it organically over 11 years, achieving eight-figure revenue before selling it to private equity.

• Winning contracts with the NHS and other local authorities was a catalyst for the business's growth and provided predictable and repeatable revenue.

• Implementing systems and processes, including a bespoke software system, helped improve efficiency and increase gross margin from 48% to 61%.

• David's current venture involves pursuing acquisitions in the healthcare and facilities management sectors, combining organic growth with strategic growth.

• The healthcare sector offers attractive profit margins and opportunities for growth, especially in specialized areas such as patient handling and assistive technology.

Notable Quotes:

• "The best time to sell your business is when somebody is prepared to buy it." - David Lynch

• "Having a capital event and having an exit gives you the time to discover new areas and new passions." - David Lynch

Article:

David Lynch: Growing a Healthcare Business and Pursuing Acquisitions

FROM THE Editor:

Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. We are not attorneys, tax, or financial advisors and not qualified to give any such advice.  

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