E195: Boopos: Financing Subscription Businesses with Ignacio Villanueva - Watch Here

About the Guest(s):

Ignacio Villanueva is the VP of Origination of Boopos, a finance company that specializes in providing capital for subscription-based businesses. Originally from Spain, Ignacio has a background in professional rugby and has played for the Spanish national team. He studied business and law and went on to start a fintech company before joining Boopos. With his experience in the M&A space, Ignacio has been instrumental in building Boopos into a successful platform for financing online businesses.

Episode Summary:

In this episode, Ronald Skelton interviews Ignacio Villanueva, VP of Origination of Boopos. Ignacio shares his journey from being a professional rugby player to entering the world of finance and acquisitions. He discusses the origin story of Boopos and how the company provides financing for subscription-based businesses. Ignacio explains the different types of buyers Boopos works with, including roll-up strategies, sophisticated buyers, and first-time buyers. He also highlights the importance of understanding the cash flow and revenue trends of a business before acquiring it. Ignacio concludes by discussing the challenges and opportunities in the e-commerce and content site industries.

Key Takeaways:

• Boopos specializes in financing subscription-based businesses and works with different types of buyers, including roll-up strategies, sophisticated buyers, and first-time buyers.
• Understanding the cash flow and revenue trends of a business is crucial before acquiring it, as it helps determine the deal structure and financing options.
• E-commerce businesses can be risky due to their high competition and potential revenue fluctuations, making it important to have a solid understanding of the market and brand equity.
• Boopos offers a streamlined process for financing acquisitions, analyzing businesses within a few business days and providing personalized advice on deal structures.
• The future of acquisitions may involve new verticals such as TikTok shops and YouTube channels, and Boopos is open to exploring these opportunities.

Notable Quotes:

• "You have to be careful when you play around with [over-leveraging]. It could be very good, but it could also be dangerous. If your revenues decrease just a little and you're too over-leveraged, that could kill the whole structure." - Ignacio Villanueva
• "Growth by acquisition is our number one sport. We always encourage that. But make sure that the basic math adds up. Don't try to win the system. As long as the basic math makes sense, then go for it." - Ignacio Villanueva

Article:

How to Finance Your Online Business Acquisition: Insights from Boopos

Key Takeaways:

• Boopos offers financing for subscription-based businesses, focusing on online companies with a track record of monthly recurring revenue.
• They work with three types of buyers: roll-up strategies, experienced operators, and first-time buyers.
• Boopos provides personalized advice on deal structures and helps buyers secure the best financing options for their acquisitions.

Financing Online Business Acquisitions with Boopos

Boopos is a fintech company that specializes in financing online business acquisitions. They focus on subscription-based businesses, providing capital to buyers who are looking to acquire and grow these types of companies. In this article, we will explore the origin story of Boopos and delve into their unique approach to financing online businesses.

The Origin Story of Boopos

Boopos was founded by Juan Ignacio Garcia, a seasoned entrepreneur who built the first unicorn in Spain. Ignacio Villanueva, who joined the company early on, shares that Boopos initially wanted to buy businesses themselves but quickly realized that they lacked the operational expertise. Instead, they decided to focus on financing acquisitions for buyers who had the necessary experience and knowledge to operate the acquired businesses successfully.

Three Types of Buyers

Boopos works with three types of buyers in the market. The first type is roll-up strategies, which are usually private equity firms with extensive experience in financing and structuring deals. These buyers have a team of experts who understand leverage and know how to operate and scale businesses effectively. They raise capital and acquire multiple brands, leveraging Boopos' financing to maximize their purchasing power.

The second type of buyer is the experienced operator, someone who has successfully operated businesses in the past and is looking to buy and sell businesses on an ongoing basis. These individuals are sophisticated entrepreneurs who understand the power of leverage and the importance of minimizing capital investment in acquisitions.

The third type of buyer is the first-time buyer, an individual who may have some experience operating businesses but is venturing out on their own for the first time. These buyers partner with Boopos for their first acquisition, as they may not have the personal guarantees required by traditional lenders like the Small Business Administration (SBA).

Financing Subscription-Based Businesses

Boopos focuses on financing subscription-based businesses, including SaaS companies, paid newsletters, and other online businesses with recurring revenue models. They connect to the payment processor of the business to track monthly recurring revenues and ensure that the business stays on track with its projected revenues.

While Boopos primarily works with online businesses, they are open to exploring other verticals as long as they can connect to the payment processor and track monthly revenues. This allows them to assess the health and stability of the business and make informed financing decisions.

Deal Structures and Financing Options

Boopos offers personalized advice and support to buyers throughout the financing process. They analyze each business and provide a term sheet within a few business days. Their team works closely with buyers to structure the deal and determine the monthly payments based on the buyer's financial situation and the specific business being acquired.

Boopos advises buyers on the optimal deal structure, taking into account factors such as the buyer's ability to grow the business, the projected cash flow, and the seller's note. They aim to ensure that buyers have enough cash flow to service the debt and pay off the seller's note, while also securing a good deal for the buyer.

Conclusion

Boopos offers a unique financing solution for buyers looking to acquire and grow subscription-based businesses. They work with a range of buyers, from experienced operators to first-time buyers, providing personalized advice and support throughout the financing process. By focusing on subscription-based businesses and analyzing each opportunity carefully, Boopos helps buyers secure the best financing options for their acquisitions. If you're considering acquiring an online business, reach out to Boopos to explore your financing options and make your acquisition a success.

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