At Domain Magnate we have our own approach to deals and use a specific selection criteria when making acquisition decisions.
We aim to acquire businesses that match our skills and expertise which we can successfully operate, grow and improve.
What we look for:
As a US company, we comply with all US federal and relevant state laws, so we do not acquire businesses that may violate those. These include businesses which:
We aim to make a positive contribution to the world and therefore follow a strict ethical code when acquiring new assets. We avoid businesses which:
We are transparent about pricing and are happy to explain calculations and deal structures to sellers. We buy on behalf of our investors and funds which also impacts pricing for different businesses.
Substantial opportunities for expansion in their niche through SEO
Reasonably priced based on market value
A growing niche
Consistent history of profitability
Diverse sources of revenue and opportunities for optimizing monetization
The funding for our acquisitions comes from several different sources:
Occasionally we buy businesses for our own portfolio or to integrate with our services that fit well with our strategy and expertise
We operate several funds with our investors where we use investor capital to purchase and manage businesses that fit the fund criteria
We also buy and manage businesses on behalf of individual investors and clients who fund the deal themselves
For all funding options, most transactions are done via escrow.com. See CEO Michael chat with the owner of escrow.com here.
We have a straightforward and transparent process when it comes to making acquisitions:
We first engage with the seller to check that the business meets our preliminary criteria regarding business type, profits, ethical and legal requirements and expected price range.
For businesses that pass the initial review, we do a more detailed due diligence and analysis to ensure they meet all the criteria outlined on this page, and we also verify financials, traffic, marketing and operational processes.
Upon passing all our due diligence and verifying the criteria, we can submit an offer for the business.
Once a deal is reached we move forward with a sales agreement that includes the structure and terms of the purchase.
Most of our transactions are conducted via escrow.com (we are also a premium partner with them), so we send funds to escrow.com for verification, receive the assets, and upon completion the funds are released.