Today's case study represents the way we like to work: connecting people who want to acquire a business with the transaction that best fits their needs and experience, working closely with brokers.
We met Michael through his relationship with the management team of online business broker FE International. Earlier in 2021, we explored another FE International listing with Michael. Although we didn’t end up moving forward with that particular proposal, our relationship continued. We continued to outline our mutual goals and started to discuss different business opportunities.
We started working together to find the perfect deal and when we did, we partnered with Michael to complete the acquisition.
Michael has now acquired Gigalixir, a trusted Platform as a Service designed by and for Elixir developers.
Do you want to hear the story in the buyer’s own words? Keep on reading.
Personal attention, experience in the industry, vetting and due diligence already completed, and the online tools” Michael Frew, CEO of Gigalixir.
Almost any online business acquisition investor will tell you that deal flow is one of the hardest challenges to overcome in 2022. There are too many dollars chasing very few solid business opportunities. Real returns have shrunk in the real estate market and equity markets, so more people are trying their hand at buying online properties as a way to increase the return for their stagnant cash positions.
This situation has only gotten more challenging since the start of the pandemic with governments pushing excess financial capital out into the market and a lot of less sophisticated and price-sensitive investors have flooded the market with a lot more cash than practical experience. This has been driving up multiples and making acquisitions a very competitive bidding war similar to what one sees in the US real estate market today.
Since 2018, I was aggressively looking for a business that fits my narrow niche of expertise (cloud-based infrastructure services for corporate engineering teams). Finally, in October 2021, my colleague at Boopos passed along a prospectus of a company that perfectly fits our niche, expertise, and price range.
To put it simply, I would not have found this business without Boopos doing the sourcing for me.
I had not reviewed other similar options prior to this opportunity. However, I did review other options after needing to finance the new deal and Boopos continued to stand out amongst the competitors.
Every company has different financing terms that work for some situations and are less desirable for other situations. That’s one of the attractions of these new financing options that are becoming available for investors in the sub-$5M online acquisition space. There are multiple ways to tailor a financing package and an investor can put together a package that works best for both the lender and the borrower.
What stood out with Boopos was the rapid customer service response to all of my questions, the open and transparent costs of the financing, simple and integrated website servicing to get started, and an incredibly quick close when the cash was needed.
Additionally, because Boopos had sourced the opportunity, they had already spoken with the seller and provided yet another opinion on seller verification for the acquisition. You can never have too many angles to view an opportunity and I valued Boopos’ open candor on their impressions of the business and why they chose to finance a portion of the purchase.
Very satisfactory and I will without a doubt continue to work with the team going forward. I know that they are aware of my preferences and pass along opportunities that may be a good match even to this day.
It felt like we were all on the same team with the same goal. For solo acquisition investors like myself, it’s really comforting to feel like you’ve got a good support team behind you when you need to ask questions or make adjustments to your financing terms.
I was immediately struck by the thought “their professional experience and goals are just like mine”, which sometimes is hard when a vast majority of people have no experience or idea what investing in online companies is really like for a buyer. Speaking with Boopos was a completely different experience than my conversations with my bank, an SBA lender, the local or national tax office, or any other non-online business entity.
Not to bore everyone by reiterating the above, but the personal attention, experience in the industry, vetting and due diligence already completed, and the online tools confirmed that I was dealing with an organization that valued their business, their customers, and their long term success.
Absolutely…unless they were competing for the same business acquisition!
Kidding aside, yes, I would refer anyone looking for a purchase to reach out to Boopos and get a conversation started on whether they might be a good match to finance some or all of a purchase. The support is fantastic, the ease of use is refreshing, and the ability to close quickly and not jeopardize a deal at the last minute is invaluable.
I had been looking for roughly 3 years for my next acquisition in the $1M-$5M space. That’s a very long time when you’re working on it day in and day out and have very little to show for it other than “soon, I’m sure something will work out…”
Without Boopos, I know I’d still be in that cycle of looking, kicking the tires, but not pulling the trigger on a good acquisition.
Boopos helped me and my team reach our goal, we couldn’t have done it without them.