The Business Inquirer #069
The Business Inquirer #069
In this week's issue, I highlight eight listings including a real estate SaaS, two MSPs, a senior living SaaS, 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 - 2 listings
🕸 Content/Service/Other - 5 listings
🛠 Tools & Resources
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🛒 eCommerce
Medical Textiles & Senior Care Products - $3.3M
For sale is a 23-year-old ecommerce business including a portfolio of websites that sell a diverse mix of products to adult assisted living facilities, laundromats, jails, gyms, camps, shelters, etc.
B2B and high volume B2C distribution channels;
90/10 split between stock and drop ship; Private label products;
All growth is organic; 64% repeat order rate;
TTM Revenue: $2.3M; Profit: $642k; Margin: 28%
Asking: $3.3M; Multiple: 5.14x
✅ What I Like
Well-established business with a diverse product mix and client base. Separate websites for each type of product. Evergreen niche. End-markets seem to be growing especially adult assisted living. Sellers do not have an online marketing strategy so there may be an opportunity there.
❓ Questions & Concerns
How was this business impacted by COVID and supply chain issues? Not a lot of detail around sourcing, AOV, returns, etc. I’m not sure if a 64% repeat order rate is good for this type of business. This isn’t a business for first-timers as there are a lot of moving pieces. Valuation isn’t cheap.
You can view the listing on WebsiteClosers.
☁ SaaS
POS Solution for Senior Living - $2M
For sale is a 22-year-old PoS solution that serves the senior living industry by helping them manage meal plans and dining dollar resident accounts.
Competitors: Full Count, C-Bord
7-person team; $500k ARR;
TTM Revenue: $1M; Profit: $150k; Margin: 15%
Asking: $2M; Multiple: 13.33x
✅ What I Like
Well-aged business in a good niche. Large and fast-growing TAM. Opportunity to convert legacy accounts from perpetual license to SaaS. Perhaps the seller is too comfortable/complacent and a new owner can come in and spot opportunities.
❓ Questions & Concerns
Continuing the thought from above - a complacent owner could have let things slip through the cracks. Maybe the software is outdated and needs to be rebuilt ($$$). A simple Google search uncovers a lot of competition in this space. A lot of diligence is required for this type of business. Margin is pretty low for a SaaS while valuation is very high.
You can view the listing on MicroAcquire.
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Real Estate Software - $5.5M
For sale is an 11-year-old SaaS that serves the real estate industry. The owner is a developer and is semi-retiring. Not much detail in the listing.
Voted #1 Complete Real Estate Software by Realtors
Voted #1 Recruiting and Analysis Software by Realtors
66,500 clients; Low churn;
TTM Revenue: $624k; Profit: $550k; Margin: 88%
Asking: $4.9M; Multiple: 8.91x
✅ What I Like
Evergreen market with a large TAM. Large client base. Great margins. Owner is a developer who built the solution so I assume the tech is solid. Owner is willing to stay on in the business which is typically a good sign. I’m sure there are creative financing and deal terms available. “Voted #1” is a great marketing pitch in SaaS.
❓ Questions & Concerns
Not a lot of detail in this listing. Who are the ideal clients? How are they acquired? How do the support tickets look? I’d talk to clients and get feedback about this product. Social proof would be a good moat for this business. Valuation could be fine if there’s strong growth, a lot of automation, low customer churn, etc.
You can view the listing on BizBuySell.
🕸 Content/Service/Other
Cleaning Service Marketplace - $500k
For sale is a 9-year-old marketplace that connects clients with residential cleaning providers. They provide a flat rate, non-contract price for cleaning services.
Competitors: Handy
Fully remote admin and support team;
Live in 3 cities; Systems built to scale to 1k+ cities;
TTM Revenue: $783k; Profit: $13k; Margin: 2%
Asking: $500k; Multiple: 38.46x
✅ What I Like
A really interesting business that has a lot of operating history and strong revenue. Very large TAM and opportunities to scale. Fully remote.
❓ Questions & Concerns
Have to do some research on the regulatory front. Handy ran into issues here and had to shut down in several markets. How are the freelancers acquired? I assume that there’s a quirk with the financials. I think the seller is using marketplace GMV as their revenue and not just the cut of GMV that they get. That’s why the profit margin is so low. If I’m wrong, then there are other issues here. Interesting business but a lot of diligence is required.
You can view the listing on MicroAcquire.
————
On-Demand Marketing Talent Marketplace - $1.5M
For sale is 1.5-year-old Traktion which is a marketplace that connects clients with on-demand marketing talent. Not profitable but an interesting business with great traction.
Competitors: Mayple, MarketerHire, Advisable
UK-based; 4-person team;
Tech: Bubble, Django, Integromat, Zapier, Airtable
TTM Revenue: $350k; Profit: $0
Asking: $1.5M Multiple: 4.3x revenue
✅ What I Like
As the founder of DueDilio, clearly I have a soft spot for these types of businesses. There is a big trend of disaggregating Upwork/Fiverr and creating niche talent marketplaces. This startup has nice traction. Great looking website. Tech stack seems to be no-code. I think the pieces are in place for the right buyer to scale this. You can access their detailed deck.
❓ Questions & Concerns
The keys for a marketplace are supply-side talent and demand-side customer acquisition. If you have those two then you have liquidity and generating revenue. This is priced for a strategic acquisition.
You can view the listing on MicroAcquire or just access the pitch deck.
————
Startup Investors Database - $90k
For sale is a 1-year-old startup that sells access to an enriched database of 25k startup investors. Target audience are founders looking to raise capital.
Tech: Bubble
Priced at $59/mo, $89/mo, $149/mo; 50 paying customers;
ARR: $24,000; Asking: $90k
✅ What I Like
Simple business model to operate. I assume that the profit margin is > 90%. Appears to have some traction with 50 paying clients. There are many ways to iterate on this product and make it more valuable.
❓ Questions & Concerns
Not clear how this is differentiated from other similar products. Unclear what the profit margin is. How are clients acquired? How is the database updated? No barriers to entry. I would think the churn would be pretty high for this type of product. Valuation seems stretched.
You can view this listing on Microns.
— — — —
MSP in Dallas
— — — —
MSP in Denver
For sale is a 21-year-old MSP in Denver, CO. 75% of revenue is recurring. $1.6M revenue. $316k profit. Asking $1.6M.
You can view this 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.
Cerebro Capital - Cerebro has a network of 1,500+ lenders who can provide debt financing for your acquisition, refi, etc. $500k minimum.
X5 Deals - Proprietary deal sourcing. They do the outreach and send you relevant, actionable deals directly into your inbox.
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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