I have around $200,000 available and I would like to buy an online business.
I have reached BizBroker24 an online E-Business and Mergers and Acquisition Company, they were offering me a drop shipping ecommerce business for $150,000. This business generated around $80,000 per year. I would like to know if you believe the price of this business is too high considering that it makes only $80,000
What do you think about it?
Personally, I think $150k for a $80k/annual acquisition is not worth it. The general rule of thumb is to expect to pay 2 years revenue for a business such as this, which is dead on. But for the lower revenue companies I would really check into the operations first. For example, what are the costs? You said drop-shipping, but did not mention a net profit.
If the overall profit is under $40k/yr I would look away from that one.