The Threat and Curse of AI

A lot of owners are losing sleep over AI right now. They watch search traffic erode, they see competitors automating, and they wonder if the business they spent twenty years building is quietly becoming obsolete. 

Jaryd Krause sees it differently. He’s a buyer. And when he looks at a 20-year-old company run by an owner who is “scared of AI and selling because of it,” he sees an acquisition opportunity, not a write-off. 

Krause has been acquiring online businesses since 2014. On this week’s episode of Built to Sell Radio, you discover how to: 

• Recognize the operational layers in your business where a buyer sees easy AI leverage, even if you’ve never touched the technology 

• Reframe a flat or declining year as a story of stability rather than a story of decay 

• Separate the parts of your business that have been disrupted from the parts that are still genuinely defensible 

• Read what a buyer means when they propose a “performance note” instead of a traditional earnout 

• Understand why a seller who refuses to roll any equity makes serious buyers nervous, not impressed 

• Position your team’s manual processes as upside instead of liability 

• Hold your valuation when the obvious move would be to discount and run 

Show Notes & Links

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Definitions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Roll Over Investor: A rollover investor, in the context of selling a business, refers to an individual or entity that rolls some of their proceeds from the sale with the buyer. This strategy allows the seller to defer capital gains taxes and potentially leverage their expertise or resources in a new venture.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

TAM: “Total Addressable Market.” It’s a business term that represents the overall revenue opportunity available for a product or service in a specific market. To put it simply, TAM is the maximum amount of money a company could potentially make if they captured every single customer in a given market who might be interested in what they’re selling.

About Our Guest

Jaryd Krause

Jaryd Krause is the founder of Buying Online Businesses, where he helps entrepreneurs acquire profitable digital businesses and build wealth through online acquisitions. After burning out in the traditional work world, Jaryd began investing in online businesses and has since become a recognized voice in the world of website investing, digital assets, and online business acquisitions. Through his podcast, coaching, and educational content, he teaches buyers how to identify, evaluate, acquire, and grow cash-flowing online businesses.