Anyone make an acquisition on Flippa?

January 06, 2022

by an investor from Carnegie Mellon University - Tepper School of Business in Philadelphia, PA, USA

I'm looking at larger businesses on Flippa, Empire Flippers, Deal Flow Brokers, Microacquirer, etc. Most deals are trash, as has been said elsewhere on this site, but there are a few that have potential. I'm currently looking at one on Flippa that's over $1M EV and am trying to figure out the process they run acquisitions through. It seems like their normal diligence window is 7 days? A business with an EV of $1M+ can't be diligenced in 7 days (or at least I'm not willing to commit to that window)--anyone have experience buying through Flipipa? I tried to reach out to their customer support but they were almost intentionally unhelpful.

Thanks for the insights!

Reply by an investor
from Carnegie Mellon University in Philadelphia, PA, USA

I've found most of the online brokers suck but occasionally there's a good business. Just don't expect any help from their customer support team: bring your own LOI, your own expectations about the process, pricing, etc. These businesses and brokers live in a different world when it comes to valuation--my buddy came across a $10k annual profit business owner expecting $400k for the business.

Reply by a searcher
from Gardner Webb University in Columbia, SC, USA

I can't speak to the 7-day window being normal/abnormal, but I can second your experience of Flippa's horrific customer support. If you can't contact the seller directly, I'd suggest using any alternative broker.

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