The Evolving Art of Profitable Acquisitions With Dom Wells [Ep.147]

Spotting a promising acquisition is just the beginning.
Figuring out how to make that acquisition thrive is a whole new
challenge. 


Dom Wells has cracked the code for both. Dom is the founder
of Onfolio, a company that specializes in buying and nurturing
profitable online businesses.


Since Dom's last appearance on the podcast in October 2022,
shortly after Onfolio went public, the company's revenue has
surged from $1.2 million to nearly $6 million.


In this episode, Dom returns to discuss how his acquisition
strategy has evolved. He's shifted away from content sites and
instead focused on acquiring agencies, WordPress plugins, and
digital courses. 


Why the change? Content sites are excellent traffic assets,
great for cultivating audiences and communities, but they come
with a notable drawback—the vulnerability to AI and algorithm
shake-ups. 


To mitigate this risk, Dom advises content site owners to
pivot beyond SEO and affiliate revenue. They should explore
innovative ways to build their audience and convert it into a
thriving community or media brand. One effective approach is to
channel traffic toward additional revenue streams like
newsletters, digital courses, or eCommerce stores.


Dom also walks us through how he goes about acquiring
businesses, from the characteristics he looks for in a business
to his preferred deal structure and how he sources CEOs to run
those businesses. 


Finally, Dom shares his insights on current market
conditions for sellers. 


He believes the market is unlikely to return to the high
valuations of 2020/2021 any time soon. Therefore, entrepreneurs
who have a large chunk of their net worth invested in their
businesses are shouldering enormous risk by delaying selling
their businesses in the hopes of waiting out the
market. 


Don't miss this episode packed with valuable insights into
the world of acquisitions and the evolving landscape of online
business!
Topics Discussed in This Episode:


A brief breakdown of Onfolio's business model and
history  (02:26)


The characteristics Dom looks for when acquiring
businesses (05:05)


Mitigating the risks of running a content site through
diversification (08:37)


The benefits of buying an agency (17:00)


The metrics Dom looks at when valuing an agency
(22:45)


How Dom sources quality CEOs to run his businesses
(29:13) 


Dom's approach to CEO onboarding (37:20)


The characteristics of a good CEO (41:00)


Dom's ideal deal structure when acquiring businesses
(45:34)


Dom shares his outlook on the current sellers' market
(47:53)

Mentions:


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Dom's previous Opportunity podcast interview


Onfolio


Dom's X (Twitter)


Greg Eisenberg's  X (Twitter)



Sit back, grab a coffee, and learn how an acquisition pro
approaches growing his portfolio!