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.

Main Takeaways:

- A highly selective vetting process means only about 5 percent of businesses submitted to Empire Flippers are accepted

- Strong financials, clean books, realistic valuations, and stable trends are critical to a seller’s eligibility

- Many sellers remain psychologically anchored to inflated valuations from the 2020 to 2022 period

- Buyers today are more sophisticated and expect clean financials, organized records, and clarity on trends

- Due diligence has matured and exclusive due diligence periods, quality of earnings reports, and buyer side advisors are now common

- Empire Flippers verifies buyer identity and liquidity before granting access to listings in their price range

- AI enhances buyer matching by analyzing thousands of historic CRM notes to surface relevant opportunities

- Co brokering is expanding the marketplace by bringing in high quality listings from a select group of trusted brokers

- E commerce continues to perform strongly because AI enhances rather than replaces the business model

- SaaS valuations remain high but are more vulnerable to disruption from rapid AI advancements

- Sellers should have accurate books, a true understanding of profitability, and realistic valuation expectations before going to market

- Buyers benefit when marketplaces maintain strong vetting so they are not wasting time on stale or overpriced listings

- Market cycles influence both valuation expectations and the creativity of deal structures

- Remote first companies can build strong global teams and attract diverse buyer and seller pools

- Leadership, culture, and flexibility are powerful motivators for teams in digital first organizations

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

Connect with Empire Flippers:

Website: https://www.empireflippers.com

LinkedIn (Andy Allaway): https://www.linkedin.com/in/andyallaway

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

LinkedIn: https://www.linkedin.com/in/jaredwjohnson/

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