Michael Girdley (@Girdley) and Bill D’Alessandro (@BillDA), talk about a fascinating deal in Tampa, Florida where we enter the world of Firearms and Firearm-related eCommerce and find out whether this was a good or quite scary business. We also deep-dived into second amendment-style businesses that are just printing money and interesting to have in our radars.
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(00:00) - Introduction
(00:37) - Our sponsor is Cloudbookkeeping.com
(02:04) - Deal financials: Florida firearm accessories and ammo alternatives company
(04:20) - The perfect listing doesn’t exist… Does it?
(04:52) - Why is this deal a razor’s edge in eCommerce?
(06:44) - Is this a “moat-able” business?
(07:48) - The seller owns the molds: Is that defensible?
(09:00) - Why is this so profitable? Was the business affected during the COVID Bump?
(11:44) - How do you avoid getting canceled when you have a 2nd amendment-related business?
(14:10) - What’s SDE the trap in this industry?
(16:00) - Why does Bill get scared of the compliance risks? Let’s talk about value chain risks in this business
(18:57) - What are the best opportunities in this sector? Who should buy this?
(19:53) - What is going on in this industry right now? What’s the outlook for the future?
(21:55) - What are the good content affiliates for this business?
(23:33) - What is the hidden fact about the operation?
(24:07) - Check out the best business model ever
(26:15) - Where do the margins come from in this business?
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