Flippa Deal Flow Review
Deal Flow is Flippa.com’s Premium Brokerage Service, specializing in smaller (sub-$1 Million) acquisitions, with significant inventory in the sub-$100,000 range at times.
Whilst Flippa has been around and dominating the lower-end websites industry since 2009, Deal Flow was launched in late 2013 and has gained a significant market share since.
In the interest of full disclosure, I was closely involved with Deal Flow from March 2014 until October 2015 and have built the majority of their current processes myself. As of October 2015 I am no longer involved with the company in any way, however.
Similarly to Quiet Light and FE International (<links), Deal Flow properties are typically reasonably priced and price inflations are uncommon.
As usual, there’s virtually always some room for price negotiations however.
Note that as of late 2015, Deal Flow has made new broker hires and as individual brokers appear to have significant control over valuation, inexperienced brokers may act contrary to the above.
Due Diligence / Asset Quality
Deal Flow employs high level of due diligence standards and has set up robust processes to eliminate the chance of fraudulent or unsustainable businesses being listed.
Brokers, however, appear to have the last say over which properties get listed and due to the commission-based nature of the industry, it’s likely that lower-quality or ‘borderline’ properties slip through the cracks at times, so buyers should always do their own due diligence.
Quality of Marketing Materials
Contrary to most online business brokers, Deal Flow does not provide prospectuses in the PDF format, but rather makes listing information available through their website, which only registered and approved buyers can access.
Marketing materials are generally sufficient to make a preliminary decision and include a robust seller interview, but the overall quality depends on the individual broker in question and seller interviews are often ‘templated’ and poorly customized, leaving many important questions unanswered.
Longevity / Reliability
Deal Flow is part of Flippa.com, which is a large and established company. As such, it’s highly unlikely that the company would seize to exist. Both Deal Flow and its parent company have sizeable teams, meaning that in the event that an individual broker becomes unavailable there will always be someone to take over.
There are also significant centralization processes in place which allow brokers to exchange information and easily take over listings if and when necessary.
Deal Flow is showing a high level of integrity both in their dealings with clients and partners, as well as their marketing practices.
Note however, that Deal Flow’s parent company Flippa has been known to engage in unorthodox practices, such as disguising a significant price increase as a price drop.
Inventory and Turnaround
At most times Deal Flow has between 10-15 active listings, the majority of which fall in the $50,000 – $250,000 price range.
Smaller properties tend to turn around extremely quickly, often in a matter of days, whereas larger sites often remain listed for several months.
Directors: Mark Harbottle, Michelle Miller
Brokers: Jamie Toyne, Andrew Statz, Griffin Sinn, Amber Burke