The Business Inquirer #051
In this issue, I highlight 7 listings including an e-mail productivity micro-SaaS, an IT staffing company, and a landing page builder for Amazon merchants.
The Business Inquirer covers the most interesting tech-enabled business acquisition opportunities. Written for entrepreneurs, search funds, investors, and business owners. It’s completely free and you’re guaranteed to learn something new.
Let’s connect: LinkedIn, Twitter, Facebook Group, Calendly
Hello Friends!
In this week’s issue:
🛒 eCommerce - 0 listing
☁ SaaS - 4 listings
🕸 Content/Marketplace/Service - 3 listings
🛠 Tools & Resources
The Business Inquirer is brought to you by DueDilio. DueDilio is the fastest growing platform connecting business buyers and private investors with quality, pre-vetted due diligence service providers. DueDilio clients include individuals, search funds, independent sponsors, private investors, and SMBs requiring diligence on deals that are < $25M in transaction value.
🛒 eCommerce
☁ SaaS
Landing Page Builder for AMZN Merchants - Open to Offers
For sale is a 4-year-old SaaS that is a landing page builder that allows you to capture emails in exchange for Amazon coupon codes. The target market is Amazon sellers.
Competitors: LandingCube
2-person team
30-Day Revenue: $6.4k; Profit: $4.4k; Margin: 69%
TTM Revenue: $96k; Profit: $56k; Margin: 58%
Asking: Open to Offers
✔ What I Like
Sells a product into an expanding market. Great margins. I don’t see a lot of competition in this space.
❓ Questions & Concerns
I don’t see a lot of search volume for this type of product so I’d be curious about customer acquisition channels and costs.
You can view the listing on MicroAcquire.
————
SilentInbox MicroSaaS - $7,000
For sale is 1-year-old SilentInbox which is a productivity SaaS to help users silence the inbox and be more productive.
~1,000 customers; Fremium & yearly subscriptions
4.2/5 star rating on Google Marketplace
$900 MRR. Listing says there are $0 expenses;
Asking: $7,000
✔ What I Like
I like the concept behind this project and see how it would be really useful. Freelancers and creators are a big target market. There’s some traction with 1,000 users. Website looks well done.
❓ Questions & Concerns
I hate any listing which says $0 expenses. Clearly, that’s just not true. At the very least they pay for a domain/website. On first glance, valuation seems a bit elevated.
You can view the listing on Microns.
— — — —
Diversify & Inclusion Platform - Open to Offers
For sale is a 8-month old startup that is an employee engagement platform including diversity and inclusion solutions. Interesting opportunity for someone.
Competitors: Workhuman, Cultivate
Founded by a PE group; 3-person team;
30-Day Revenue: $126k; Profit: $60k; Margin: 48%
Asking: Open to Offers
✔ What I Like
Diversity & inclusion initiatives are being announced at almost every company. I think any tech solution that helps solve challenges in that space should gain traction. This solution definitely has some legs. From the listing, it sounds like there are a few options on structuring the deal. Enterprise and education are both part of the TAM.
❓ Questions & Concerns
I think understanding the competitive landscape is key.
You can view this listing on MicroAcquire.
— — — —
FinTech SaaS - Open to Offers
For sale is a controlling stake in a fintech SaaS offering solutions to improve operational efficiency, automate transaction processing and business resilience. The business lines include automated reconciliation, continuity management, and escrow management.
Sales of a controlling stake in the business
Marquee enterprise clients including global banks, central banks, and F100
TTM Revenue: $1.3M;
You can view this listing on Searchfunder.
🕸 Content/Marketplace/Service
IT Staffing Company - $850k
For sale is a 6-year-old IT staffing company based out of Wisconsin but can be relocated anywhere.
Serves SMBs and large enterprises including Fortune 500 clients.
All business comes from repeat clients & referrals
Owners willing to stay on as equity partners; 95% first-year retention rate;
TTM Revenue: $846k; Profit: $314k; Margin: 37%
Asking: $850k; Multiple: 2.71x
✔ What I Like
Well-aged business. Reasonable multiple. High retention rate of first-year placements. Nice profit margin. Sellers are willing to stay on to advice or for equity. All business is organic so they have to be doing something right. Maybe opportunity to implement some marketing to really scale. I assume that staffing agencies are in very high demand right now.
❓ Questions & Concerns
Is there a key-man risk? There is no marketing plan. No roadmap if organic leads stop coming in. Based in Wisconsin and not clear how easily it can be relocated.
You can view the listing on BizBuySell.
————
Resume Writing Service - $400k
For sale is a 3.5-year-old writing service that helps job seekers optimize their application documents and simplify their job search. Not profitable.
Competitors: Topresume
Three-tier pricing ($149/$229/$339)
Custom software incubated at a startup lab; 6-person team;
30-Day Revenue: $7k; Profit: $500; Margin: 7%
TTM Revenue: $70k; Profit: $0; Margin: 0%
Asking: $400k
✔ What I Like
I’ve always been a fan of this space. I actually purchased and sold a somewhat similar business previously. It’s a competitive space but a lot of ways to differentiate yourself (niche, messaging, product). I’d be curious to learn more about the software they use and if there’s some competitive advantage here. Resume writing is always in demand…
❓ Questions & Concerns
The asking price is bonkers. Unless there’s some insane IP or the website has some very high traffic numbers, I don’t understand this valuation. Even for a strategic acquirer, this seems pie-in-the-sky asking price. I really want to know their valuation technique because if I apply it on DueDilio, I must be a multi-millionaire already and not even know it.
You can view the listing on MicroAcquire.
— — — —
Online Education - $1.6M
For sale is a 15-year-old online education business focusing on building online courses for universities as well as helping professors find jobs.
3-employees; AOV of $150 - $40k;
Owner spends 30-40 hrs/wk on the business
TTM Revenue: $1.3M; EBITDA: $570k; Margin: 44%
Asking: $1.6M; Multiple: 2.81x
✔ What I Like
Interesting niche. Long operating history. Very large TAM in a growing market. This article from HBR does a nice job of explaining the need for investment in the online education space.
❓ Questions & Concerns
I wish there was more detail in the listing. One concern is that you’re buying a job, not a business. With 3 employees and contractors, the owner still spends 30-40 (stated) hours per week on the business. My understanding is that it’s a niche technology consulting business. Then there’s also the staffing component. Need to understand the interplay there. Valuation seems elevated for this type of business.
You can view the listing on BizBuySell.
🛠 Tools & Resources
These are tools & resources that I personally use. They may contain affiliate links so I’ll get a few shekels if you sign-up.
ProjectionHub - Access to 50+ CPA-developed financial projection templates. 25% discount.
PrivSource - Deal aggregator for lower and middle-market listings.
Logology - Best automated logo & brand identity tool I’ve come across.
DeepBench - Access a cutting-edge expert network. $200 discount.
OpenPhone - The best business phone solution that I have found. $20 credit.
Eloquens - Knowledge marketplace. I’ve bought a few guides and templates here.
Deal Flow Scout - peer-to-peer deal flow exchange. Free, open, transparent.
That’s all for this issue of The Business Inquirer!
Help us improve with anonymous feedback. How did you like this issue of the newsletter?
If you enjoyed reading this newsletter, why not share it?
Let’s connect: LinkedIn, Twitter, Facebook Group, Calendly
Important Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. This newsletter may link to other websites and certain information contained herein has been obtained from third-party sources. While taken from sources believed to be reliable, it has not been independently verified. The Business Inquirer makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. References to any companies, securities, or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any business, tax, or investment decisions. Content in this newsletter speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.