Acquiring or selling a business is a big decision and process that involves strategic planning, negotiation, and a deep understanding of both parties’ perspectives. We dive into the intricacies of this journey by exploring insights from both the seller, Lachlan Kirkwood, and buyer, Kestutis, of a recent deal on Flippa.
Finding the Right Idea and Executing on It
Lachlan’s entrepreneurial journey with Building with Bubble is a testament to seizing opportunities in the digital education space without traditional coding skills. His background in marketing and work with tech startups in Brisbane laid the foundation for his venture into online education. Faced with the challenge of executing app ideas without coding abilities, Lachlan discovered Bubble.io in 2019 – a no-code platform enabling non-technical individuals to build sophisticated applications.
After trying to build 8 different online businesses that failed, a light-bulb moment came in the most unexpected way. The breakthrough came when a Twitter follower from Japan expressed interest in learning from him, sparking the idea to create educational content. This marked the genesis of Building with Bubble, initially shared via Udemy for broad distribution despite the platform’s high commission structure.
Organic Growth and Distribution Strategy
Transitioning from Udemy, Lachlan leveraged his marketing expertise to build a dedicated YouTube channel. This strategic move allowed him to showcase his teaching style, provide value through free content, and convert viewers into paying customers. Unlike paid ads that had previously failed for him, Lachlan’s organic growth strategy proved highly effective, attracting an audience aligned with his instructional approach and content offerings.
Initially experimenting with subscription models, Lachlan landed on a one-time payment model for courses, capitalizing on customer conviction during initial interest peaks. Over time, he increased prices incrementally based on added course content, reinforcing the value proposition and maintaining customer satisfaction. This strategic pricing not only enhanced cash flow but also positioned Building with Bubble as a high-value, affordable alternative to traditional coding education.
Product Diversification and Upselling
Acknowledging the limitations of one-time payments, Lachlan introduced a premium “Freelancing Masterclass” aimed at users transitioning from app development to freelancing. Priced significantly higher than standard courses, this offering targeted individuals seeking to monetize their skills through client work, thereby diversifying revenue streams and addressing customer needs at different stages of their journey.
Deciding to Sell and Future Aspirations
Despite intending Building with Bubble to be a long-term venture, Lachlan eventually decided to sell the business after experiencing burnout and seeking new life experiences beyond work. A pivotal moment came during a transformative holiday, prompting him to reassess priorities and explore other interests. While initially conflicted, Lachlan ultimately listed the business on Flippa, recognizing it as an opportunity to pursue new entrepreneurial endeavors with undivided focus and energy.
Matching with the Perfect Buyer
The journey of Kestutis and his partner, Andrius, stands out as a testament to the power of strategic acquisitions and partnerships. Based in Lithuania, these two entrepreneurs have successfully navigated the complex landscape of online business acquisitions, leveraging platforms like Flippa to expand their portfolio.
Kestutis and Andrius have a clear vision: to build a diverse portfolio of online assets, particularly in the niche of online education and courses. Their second major acquisition, “Building with Bubble,” represents a significant milestone in this journey. Despite its differences from their first purchase, they recognized potential synergies between the two assets, aiming to apply learnings from one to the other and vice versa.
The Acquisition Process
Kestutis and Andrius have specific criteria for the businesses they acquire. They focus on digital assets that do not involve inventory, preferring content sites, marketplaces, B2B SaaS, and digital products that can be managed remotely. Their target price range is between $300,000 and $3 million, looking for businesses that offer stability and growth potential without the complications of physical inventory. Building with Bubble fit this criteria perfectly.
Once they found Building with Bubble on Flippa, Kestutis and Andrius, the actual acquisition moved swiftly, with the initial meeting with Lachlan in April and the transaction completed by May 10th. This efficiency was largely due to the thorough preparation by Lachlan, who had everything organized and ready for potential buyers.
Transition and Integration
One of the critical aspects of this acquisition was the transition period. Lachlan, the original owner and face of “Building with Bubble,” agreed to stay involved for 18 months post-sale. This period, with his hours gradually decreasing, ensures continuity and allows the brand to transition smoothly from being Lachlan-centric to a broader, more sustainable model. Lachlan had already started this process by bringing in new content producers, which made the business more appealing to Kestutis and Andrius.
A crucial element in their acquisition strategy is building strong relationships with sellers. Kestutis emphasized the importance of the initial call, where he gauges not only the business details but also the character of the seller. This relationship is vital, especially when the seller’s ongoing involvement is necessary for a smooth transition.
Leveraging Flippa
Flippa played a significant role in this acquisition. Kestutis praised Flippa’s diligence service, which provided an additional layer of scrutiny during the due diligence process. The platform’s extensive selection of businesses and the professional support from Flippa’s team, particularly Ashwin Almeida, one of Flippa’s in-house Business Brokers, who managed the deal impartially and professionally, were highlighted as key advantages.
Future Plans
Looking ahead, Kestutis and Andrius plan to continue expanding their portfolio, aiming to acquire five to seven businesses by the end of the year. Kestutis and Andrius’s journey illustrates the potential of strategic acquisitions in the online business space. By focusing on well-defined criteria, building strong relationships with sellers, and leveraging platforms like Flippa, they have successfully expanded their online asset portfolio.
Maintaining a strong relationship with Kestutis and Andrius, Lachlan is enjoying working with the new owners of Building with Bubble as the business transition continues. Lachlan is also working on a new project which he’s excited to launch in the near future.
News Source:flippa，This article does not represent our position.
