Ever wondered how third-party extended car warranty businesses actually make money? We break down an interesting deal in this episode!**Sponsors:**Capital Pad – A marketplace for acquisition entrepreneurs looking for funding or investors seeking opportunities in small business acquisitions. Check them out at CapitalPad.com).Viso Business Capital – Helping entrepreneurs secure the best SBA loans for business acquisitions. Sign up for a free live Q&A at VisoCap.net) and click "Zoom Sign Up".In this episode, the Acquisitions Anonymous team, joined by Chelsea from Acquisition Lab, discusses a third-party extended car warranty business out of Pittsburgh. This unique deal raises questions about the company's actual role in the industry—whether they function as an insurer, a middleman, or a broker. The hosts explore the business model, margin potential, and financing options while also discussing whether such a business is bankable. With plenty of insights into industry dynamics and growth opportunities, this episode is a must-listen for acquisition entrepreneurs!Key Highlights
- What does this business actually do? Understanding its role in the car warranty ecosystem.
- Revenue model breakdown: Are they carriers, brokers, or aggregators?
- Why aren't their margins higher? A deep dive into industry profitability.
- Financing considerations: Would banks or third-party lenders fund this acquisition?
- Growth opportunities: How could an owner expand and scale this business?
Subscribe to weekly our Newsletter)** and get curated deals in your inbox**Advertise with us by clicking here)
- Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel).
- Do you enjoy our content? Rate our show)!
- Follow us on Twitter @acquanon) Learnings about small business acquisitions and operations.
For inquiries or suggestions, email us at [email protected]
