The Business Inquirer #075
The Business Inquirer #075
In this week's issue, I highlight two listings including an AI-powered marketing automation SaaS and an engineering business where the owners are looking to retire.
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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In this week’s issue:
🛒 eCommerce - 0 listings
☁ SaaS - 1 listing
🕸 Content/Service/Other - 1 listing
🛠 Tools & Resources
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🛒 eCommerce
☁ SaaS
AI-Powered Marketing Automation - $500k
For sale is a 3.5-year-old cross-channel content marketing automation software powered by AI. The software automates content marketing across all paid media channels, optimizing for client results in an unsupervised fashion
Competitors: Smartly
$800k ARR; +48% annual revenue growth;
TTM Revenue: $1M; Profit: $150k; Margin: 15%
Asking: $500k; Multiple: 3.33x
✅ What I Like
Interest in MarTech is growing especially in AI and automated solutions. The actual margin is higher since financials include $60k payments to founders. The solution has a large TAM. Would pair well with a marketing agency. Valuation is reasonable.
Check out this infographic of the marketing automation landscape from 2020. Marketing Technology Landscape Supergraphic (2020): Martech 5000 - really 8,000, but who's counting? - Chief Marketing Technologist (chiefmartec.com)
❓ Questions & Concerns
The engineering team has several patents related to the technology. Not clear how that would transfer or if the new owner wanted to move engineering to a lower-cost solution. Current growth is through referrals and word of mouth. Need to figure out a marketing strategy. Hiring a sales team can be expensive. Not for a first-time business buyer.
You can view the listing on MicroAcquire.
🕸 Content/Service/Other
Engineering Firm - $250k
For sale is an engineering services firm founded by a husband & wife who are ready to retire. Based in Indiana, the business can easily be operated remotely.
All growth has been through referrals;
TTM Revenue: $280k; SDE: $238k; Margin: 85%
Asking: $500k; Multiple: 1.05x
✅ What I Like
Established business. Opportunity to grow the business by adding some modern marketing systems. Can be relocated anywhere. Valuation is very reasonable.
❓ Questions & Concerns
This is a service business that is hands-on. New owner has to either be an engineer or hire an engineer to perform the actual work.
You can view the listing on BizNexus.
🛠 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.
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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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.