Acquiring MindsJune 15, 2023

The Bumpy Reality of Buying an Ecommerce Business

with Martin Bispels · Upper Park Disc Golf

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LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

Upper Park Disc Golf

Industry

direct-to-consumer ecommerce brand, disc golf bags, Shopify store

Year

2020

Revenue at Purchase

$1.0M

Deal Source

proprietary

Strategic Rationale

To resurrect a respected niche brand and leverage a passion-product community.

Post-Acquisition Performance

Grew from $0 to >$ 1,000,000; currently navigating a softer e-commerce market.

Key Takeaways

1Founder-led passion brands with strong community connections outperform commoditized e-commerce businesses on direct-to-consumer channels
2Operational discipline through systems like EOS, clear communication of vision, and aligned team accountability are critical for managing remote, distributed businesses
3Manufacturing partnerships require relationship building and proving long-term commitment; moving supply chains from China to Vietnam improves quality, geopolitical risk mitigation, and brand storytelling
4Retaining the seller in a focused operational role around their core strengths, rather than general consultation, creates clearer expectations and avoids conflict
5E-commerce success depends on brand storytelling and emotional connection to products rather than price competition; direct customer relationships and user-generated content create defensibility against Amazon

Matched SBA Loan Records

SBA loan filings we matched to this deal

United Midwest Savings Bank National Association85%

$1.7MP + 2.75%FY2019

Truist Bank85%

$233KP + 2.50%FY2015

Business Development Corporation of South Carolina85%

$120KP + 2.75%FY2011

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Listen on Acquiring Minds

The Deal

Business

Upper Park Disc Golf

Industry

direct-to-consumer ecommerce brand, disc golf bags, Shopify store

Year

2020

Revenue at Purchase

$1.0M

Deal Source

proprietary

Strategic Rationale

To resurrect a respected niche brand and leverage a passion-product community.

Post-Acquisition Performance

Grew from $0 to >$ 1,000,000; currently navigating a softer e-commerce market.

Key Takeaways

1Founder-led passion brands with strong community connections outperform commoditized e-commerce businesses on direct-to-consumer channels

2Operational discipline through systems like EOS, clear communication of vision, and aligned team accountability are critical for managing remote, distributed businesses

3Manufacturing partnerships require relationship building and proving long-term commitment; moving supply chains from China to Vietnam improves quality, geopolitical risk mitigation, and brand storytelling

4Retaining the seller in a focused operational role around their core strengths, rather than general consultation, creates clearer expectations and avoids conflict

5E-commerce success depends on brand storytelling and emotional connection to products rather than price competition; direct customer relationships and user-generated content create defensibility against Amazon