Jared Johnson sits down with Andy Allaway, CEO of Empire Flippers, one of the largest marketplaces for buying and selling online businesses. Andy shares how the company built a global platform that lists only 5 percent of submitted businesses, vets every seller, verifies every buyer, and has facilitated thousands of acquisitions ranging from high five figure deals to eight figure exits.
Andy explains why the online business market has matured significantly in the last decade, how valuation expectations shifted after the zero interest rate era, and why today’s buyers are far more sophisticated in due diligence. He breaks down Empire Flippers' internal valuation methodology, their strict criteria for accepting a listing, and how their engineering and sales teams use technology and human oversight to efficiently match buyers to opportunities.
Jared and Andy walk through what is actually happening behind the scenes of a digital marketplace. They discuss creative deal structures, the rise of SBA financing for online businesses, the normalization of quality of earnings reports, buyer behavior trends, the impact of AI on different business models, and why co brokering high quality listings is becoming a meaningful expansion channel for Empire Flippers.
Andy also shares why he believes e commerce remains one of the most resilient acquisition categories in a world increasingly shaped by AI and why productized, transferable businesses like faceless YouTube channels are becoming a fast growing asset class among buyers.
Episode Highlights:
[00:00:40] Empire Flippers overview and how the online business marketplace has evolved
[00:01:36] What types of online businesses qualify for the platform
[00:03:22] Why only 5 percent of submitted businesses pass the vetting process
[00:04:14] Common reasons listings are rejected and how sellers can better prepare
[00:05:22] How Empire Flippers validates financials, builds P and Ls, and packages listings for buyers
[00:08:07] Seller psychology and the lingering impact of inflated 2020 to 2022 valuations
[00:10:00] How valuation ranges are established and why realistic pricing matters for sellability
[00:11:49] What buyers expect today and why due diligence has become far more rigorous
[00:14:23] Buyer verification, liquidity checks, and the role of human led sales outreach
[00:17:00] AI driven buyer matching using thousands of historic CRM notes in HubSpot
[00:20:32] Why the market shifted in 2023 and how buyer and seller expectations reset
[00:22:20] Creative deal structures, earn outs, and the rise of financing on larger deals
[00:25:37] Empire Flippers' changing view of SBA lending for online businesses
[00:26:54] The normalization of quality of earnings reports and their effect on timelines
[00:28:10] Co brokering as a new strategic growth path and the first 6.5 million dollar agency success story
[00:31:31] What types of brokers and deals are ideal for co broker partnerships
[00:34:25] Trends in e commerce acquisitions and why diversified channels beyond Amazon are attractive
[00:38:44] The rapid rise of faceless YouTube channels as turnkey, productized acquisition targets
[00:40:31] AI’s impact on SaaS valuations and why e commerce remains resilient as an asset class
[00:41:05] The realities of seller expectations, market cycles, and valuation resets
[00:41:56] Remote culture, leadership, and Andy’s personal motivation to build a flexible global team
DISCLAIMER:
The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.
Keywords:
online business acquisition, digital business marketplace, SBA loan, e commerce acquisition, SaaS valuation, due diligence, quality of earnings, buyer vetting, seller vetting, business valuation, marketplace M and A, remote business, co brokering, AI in acquisitions, deal sourcing, financial verification, buyer matching, main street acquisitions, online business trends, acquisition strategy
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