The Business Inquirer #065
The Business Inquirer #065
In this week's issue, I highlight eight listings including a trending product research tool, hiring software, a Texas restaurant, and more.
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.
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Hello Friends!
In this week’s issue:
🛒 eCommerce - 1 listing
☁ SaaS - 5 listings
🕸 Content/Service/Other - 2 listings
🛠 Tools & Resources
This issue of The Business Inquirer is brought to you by Curators.
Autopilot Buy-Side Research & Outreach
We serve a wide variety of clients ranging from individuals, search funds, independent sponsors, SMBs, and sophisticated private equity groups.
We combine proprietary technology with human intelligence to streamline the process of delivering our clients on and off-market acquisition targets.
🛒 eCommerce
Vinyl Decals & Graphics Provider - $2.8M
For sale is a 9-year-old online provider of vinyl boat and automobile decals.
2k orders/month; $71 AOV; 45% revenue CAGR 2016 - 2020;
TTM Revenue: $1.7M; Profit: $774k; Margin: 46%
Asking: $2.8M; Multiple: 3.62x
✅ What I Like
A lot of operating history. Relatively simple product that’s easy to store and nonperishable. Proprietary design software. High volume of orders, high AOV with great margins. There may be an opportunity to add additional offerings. The e-mail list must be massive. Is there a way to expand distribution channels into wholesale? The valuation looks reasonable.
❓ Questions & Concerns
Not a lot of detail in the listing regarding actual printing and logistics. Boat decals are a seasonal business as the chart above demonstrates. How are clients acquired? How is the business differentiated? What % of orders are repeat?
You can view the listing on FE International.
☁ SaaS
Product Research Tool - $90k
For sale is 2.5-year-old Super Ali which is a product research tool for dropshippers. It helps you find trending products before they are discovered by other merchants. The seller is a newsletter subscriber.
Competitors: Alishark, Adspy, eComhunt
TTM Revenue: $26k; Profit: $21k; Margin: 81%
Asking: $90k; Multiple: 4.29x
✅ What I Like
Solid foundation for someone with a marketing background to come in and grow this SaaS. There’s a clear and large target market, competitors to learn from, and some existing revenue. Ideal buyer would already have an audience of dropshippers or e-commerce entrepreneurs. Dropshipping continues to be a popular business model.
❓ Questions & Concerns
I think there’s a lot of competition in this space that offers similar features for a cheaper subscription fee. The buyer has to figure out the right growth strategy which can be expensive. Valuation is elevated. Expensive customer to target using CPC.
You can view the listing on MicroAcquire or ping me and I’ll make an intro.
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AI Hiring & Personality Assessment Software - $500k
For sale is 7-year-old Your6 which is a software solution that uses predictive analytics to aid in the hiring process. The company is in Chapter 7 bankruptcy and is approved for sale by the court. Unique listing that may pique someone’s interest.
Ready for operations as a stand-alone solution or integrate with another software; $750k in development costs;
Processed 10k - 15k assessments per day for 3,500 clients globally; 60 countries, in 40 languages; Had contracts with USAF;
Asking: $500k
✅ What I Like
I don’t see a lot of listings of businesses coming out of bankruptcy. Could be an interesting opportunity for the right buyer. I think any solution that aids the hiring process is in high demand right now.
❓ Questions & Concerns
The biggest question is clearly the bankruptcy. Seems like the business was doing well at one point. What led the business into this situation? Why did a competitor not acquire this business? Could the business bid on government contracts?
You can view the listing on BizBuySell.
————
Online Promotions - $260k
For sale is a 3-year-old SaaS that allows users to build online marketing promotions in the form of a spinning wheel that website visitors use. Dozens of product integrations including WordPress and Shopify.
140 active paid users; $7k MRR;
TTM Revenue: $72k; Profit: $59k; Margin: 82%
Asking: $260k; Multiple: 4.41x
✅ What I Like
I’ve seen similar promotions being used successfully across various e-commerce stores. You can see a sample of this on Luxury Bazaar (scroll up and down a few times). This is a simple product that clients use to increase sales or sign-ups. There’s a good number of paid users. Integrations with Shopify and WordPress as well as other platforms.
❓ Questions & Concerns
Crowded field as there are tons of similar products out there. Can be expensive to acquire new clients. What’s the CAC? What’s the churn? How are the reviews for this product on Shopify? Is there an integration with WooCommerce? Does this product show up on Shopify search?
You can view this listing on FE International.
— — — —
Twitter for WordPress - $4k
For sale is a 5-year-old micro-SaaS that’s a WordPress plugin that automates tweeting directly from the WordPress dashboard.
163 clients; $1,500 ARR
Asking: $4,000
✅ What I Like
I’m thinking this product would appeal to someone who runs a blog or newsletter on WordPress. It would be easy to target those folks. There are already 163 clients although not clear how many are actually paying.
❓ Questions & Concerns
Not a lot of traction in 5-years. I’d want to understand some of the challenges in growing this type of SaaS. What has the owner tried?
You can view this listing on Microns.
— — — —
Shopify SaaS - $1.2M
For sale is a 1.5-year-old Shopify app that creates offers, bundles, and quantity breaks on a product. It helps merchants increase their AOV.
Competitors: Bundler, Bundles App
#4 ranking on most important keywords; 140+ reviews; 1.2k FB Group members;
30-Day Revenue: $24k; Profit: $17k; Margin: 71%
TTM Revenue: $294k; Profit: $205k; Margin: 70%
Asking: $1.2M; Multiple: 5.85x
✅ What I Like
These types of apps are typically sticky with not a lot of churn. Great profit margins. Could be great acquisition for someone who has complementary apps.
❓ Questions & Concerns
Reviews and rankings are the moat when it comes to Shopify Apps. How do the reviews look? How are customers acquired?
You can view this listing on MicroAcquire.
🕸 Content/Service/Other
Restaurant in TX - $1.75M
— —
Telemedicine for On-Demand Medical Marijuana Cards - $349k
For sale is a 2-year-old telemedicine business that streamlines the process of obtaining a medical marijuana card.
1,600 clients served since launch; Active in 6 markets;
TTM Revenue: $202k; Profit: $103k; Margin: 51%
Asking: $349k; Multiple: 3.39x
✅ What I Like
Interesting business. Clearly, there’s demand for this type of service as marijuana legalization expands. This business serves only 6 out of 31 markets so there’s a lot of room to expand. Curious to see the sharp dip in search volume over the last few months (below).
❓ Questions & Concerns
I wish there was more detail about this type of business. Who are the medical professionals signing off on the cards? What’s the process of expanding into a new market? What are the regulatory risks? I think this business is all about SEO. There may be restrictions on where and how you can advertise. Is there a recurring revenue component?
Want a laugh? Check out this YouTube video: The Worst Way to Get Medical Marijuana - Key & Peele
You can view the listing on Website Closers.
🛠 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.
Cerebro Capital - Cerebro has a network of 1,500+ lenders who can provide debt financing for your acquisition, growth, refi, etc. $500k minimum.
Curators - Proprietary deal sourcing. You need targets that fit your investment criteria, and Curators delivers week after week - we even update your personalized database on a daily basis with new information on best-fit targets.
BizNexus - Proprietary deal flow, deal aggregator, and exit prep.
PrivSource - Deal aggregator for lower and middle-market listings.
Calendly - Leading scheduling platform to easily schedule meetings without the back and forth. I’ve been using it for several years now. Free 14-day trial.
ProjectionHub - Access to 50+ CPA-developed financial projection templates. 25% discount using code “duedilio” at checkout.
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.
Deal Sourcing Guide - A directory I put together of online marketplaces, brokers, DFY deal flow, and more.
That’s all for this issue of The Business Inquirer!
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