Group Buys - Domain Magnate

Group Buys

We have several exclusive and very promising deals in mid 6 figures to low 7 figures and planning to organize group buys in order to acquire those.

Why Group Buys?

  • We find mid 6 figures to low 7 figure is the best price range to acquire online businesses in as it’s above the budget for most individual buyers and small funds, groups and investors, and below the range for larger PE firms and public corporations.
  • The quality of businesses we see in this range are much better compared to what you can expect to acquire for $100k-200k or so. These are well established businesses, with diverse sources of traffic and revenue, lower risks.
  • These businesses also typically have more growth opportunities, more ‘levers’ for us to pull to try to increase profit, such as reducing expenses, updating old content and products, modernizing systems and structures, and much more, which are often not available in smaller business
  • These deals have an added bonus of being big enough where with some growth we are able to reach out and sell to strategic acquirers, for much higher multiples.
  • The costs to manage bigger businesses are a lower proportion on revenue compared to smaller sites, so more profits will be available for distributions.

Structure

  • These will be set up via an LLC, where the ownership will be proportional to the investment size.
  • Domain Magnate will also contribute a part % of acquisition cost and will be the manager of the LLC.
  • For simplicity we plan to acquire only one business per LLC
  • Investors are not required to be accredited investors and the minimum investment size will vary, depending on the deal, however expected to be around $50K-$100K

Apply here for more details

(include in the form comment that you’re interested in a group buy and the amount you’d like to contribute per deal)