The Underdog Report

Issue #47 • January 15, 2024 • Sample Edition

Bi-weekly curated deal flow, from a buyer's perspective

This Week's Top 5 Digital Business Deals

Curated from 127 listings across Flippa, Empire Flippers, QuietLight & more

Welcome to issue #47! This week we reviewed 127 new listings and found 5 deals worth your attention. The market is showing strong demand for profitable SaaS tools and established content businesses. Here's what caught our eye:

1

📊 SaaS Productivity Tool ($2.1M asking, 2.5x ARR)

$2.1M
Asking Price
$840K
ARR
2.5x
Revenue Multiple

🏢 Broker Says:

"$840K ARR with 45% YoY growth, sticky SaaS product."

👁️ Buyer POV:

"Growth is real, but churn data not disclosed. At this multiple, retention is a deal-breaker."

🔍 What to Verify:

"Ask for churn by cohort — are customers staying beyond 12 months?"

📊 Signal Score:

"7/10 — Attractive, but risky without solid churn and LTV validation."

2

🛒 E-Commerce Gadget Store ($450K asking, 2.2x SDE)

$450K
Asking Price
$180K
Annual Revenue
35%
Profit Margin

🏢 Broker Says:

"35% margins and strong repeat purchases."

👁️ Buyer POV:

"True margins limited to 50% revenue tied to one supplier = fragility risk."

🔍 What to Verify:

"Review supplier contracts — any exclusivity or backup?"

💼 Negotiation Angle:

"Push valuation down to 1.5x SDE using supplier concentration as leverage."

📊 Signal Score:

"5/10 — Profitable, but risky without supplier diversification."

3

📰 Content Platform in Personal Finance ($1.2M asking)

$1.2M
Asking Price
25K+
Email Subs
Strong
Affiliate Revenue

🏢 Broker Says:

"25K+ email subs with strong affiliate revenue."

👁️ Buyer POV:

"80% of revenue from one affiliate partner = concentration risk, not diversification."

🔍 What to Verify:

Get revenue breakdown by affiliate. Look for dependency >30% on core partner.

🚩 Growth Level:

"Add 2-3 affiliate programs or introduce direct offers to audience."

📊 Signal Score:

"4/10 — Fragile until monetization is broadened."

Want to see deals #4 and #5?

Plus our complete Broker Says vs Buyer POV analysis, market snapshot, funding options, and actionable next steps.

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What You Get Every 2 Week

5 Curated Deals

Hand-picked from 100+ weekly listings across all major platforms

Detailed Analysis

Financial metrics, risks, opportunities, and market context for each deal

Buyer Insights

What to look for, red flags to avoid, and negotiation strategies

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