Feb 21, 2021Liked by Eyal Toledano

The asking price for businesses on sites like Micro Acquire are crazy, considering that the majority of them have either no moat, negative growth, one source of traffic/revenue, or other skeletons in the closet. It's definitely a seller's market.

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It's normal for a seller to put up a high price when listing. It's up to savvy buyers to make educated offers.

You're right about the risk: many have failed to reach market/product fit, but a large number of deals, especially premium ones, are actually quite good.

It's worth considering that the founder of a SaaS with high marks in moat, growth and traffic/revenue is likely to want to keep their business. You'll always have more people selling as a way of giving up than people selling as a way of divesting from a lack of interest

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You say that but the reason for selling is nearly always "to explore other opportunities"...aka "lack of interest"!

There's clearly adverse selection with some of these listings. They are very small, often half-baked projects where the seller has an edge over the buyer.

I've seen some going for 12x profit or more. There’s probably some bargains to be had but at those prices the risk seems too high compared to the reward.

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