The Business Inquirer #077
In this week's issue, I highlight five listings including a B2B ecommerce business, a 40-year-old SaaS, and more.
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Hello Friends!
In this week’s issue:
🛒 eCommerce - 2 listing
☁ SaaS - 2 listings
🕸 Content/Service/Other - 1 listing
🛠 Tools & Resources
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🛒 eCommerce
Bathroom & Beach Accessories - $257k
For sale is a 6.5-year-old ecommerce business that sells bathroom and beach accessories DTC using Shopify.
157 SKUs; Single supplier in Turkey;
Shipping & fulfillment handled by 3PL;
Owner spends 10-hours/wk on business;
67% of traffic is organic; 18% direct; 4% paid;
TTM Revenue: $161k; Profit: $67k; Margin: 42%
Asking: $257k; Multiple: 3.84x
✅ What I Like
A lot of operating history. Evergreen niche. Can be operated remotely. Logistics handled by 3PL. Minimal involvement from owner. Doesn’t rely on paid traffic. Nice margins. Opportunity to expand product offering and enter new markets and marketplaces. Good business for a first-time buyer.
❓ Questions & Concerns
Relying on a single supplier can be risky. How are returns and exchanges handled? What’s the repeat order rate? What’s the website conversion rate? Who handles the SEO and organic traffic for the business? Is there any product concentration? Has the business seen any supply chain issues? Are the products branded and trademarked?
You can view the listing on BizNexus.
————
B2B Loss Prevention & Security Products - $3.6M + Inv
For sale is a 12-year-old B2B ecommerce business that sells loss prevention and security products.
SBA pre-qualified;
Brand trademark and patents are in place;
Owner works 5 hours/wk; Most operations are outsourced to employees and contractors;
87% of sales are wholesale with $4.3k AOV;
Revenue increased 41% in 2021 w/ no paid advertising;
TTM Revenue: $3.3M; Profit: $1.1M; Margin: 33%
Asking: $3.6M + Inv; Multiple: 3.27x
✅ What I Like
A lot of operating history. B2B clients are typically stickier with more repeat orders. Selling wholesale is a good business model. Nice margins. High AOV. Turnkey business with minimal owner involvement. Strong revenue growth in 2021 without using paid advertising.
❓ Questions & Concerns
Not a lot of detail around the products and end-customer. What’s the total TAM for these products? How do they compare to competitors? Is the business relocatable? How are logistics and fulfillment handled? How are returns handled? What’s the repeat order rate? How are new customers acquired?
You can view the listing on Quiet Light Brokerage.
☁ SaaS
Management & Reporting of Client Service - $329k
For sale is a 40-year-old software management company. They have developed software around the management and reporting of client services provided through non-profits and medical. Not a lot of detail in the listing. Owner retiring.
Located in FL; Easily relocatable;
Owner retiring; Willing to train;
TTM Revenue: $74k; Profit: $62k; Margin: 84%
Asking: $329k; Multiple: 5.31x
✅ What I Like
I like the strong margins and the 40-year operating history. Listing mentions that the client base is very sticky and has been with the business for 10+ years. Owner is retiring so there may be creative deal structures.
❓ Questions & Concerns
Not a lot of detail here. Software may need to be updated or completely re-written. Why hasn’t the business scaled? Valuation seems very high. A lot of due diligence required.
You can view the listing on BizBuySell.
————
E-Mail Capture - $273k
For sale is a 4-year-old SaaS that allows users to create social opt-in links to capture email addresses and increase conversion. Serves digital marketers and marketing agencies.
10k+ customers; Most sales from Appsumo campaign;
TTM Revenue: $273k; Profit: $49k; Margin: 18%
Asking: $273k; Multiple: 5.57x
✅ What I Like
Some operating history. Listing mentions there are at least 10k customers. This is a strong base and product validation. Could be a nice business for someone who has strong marketing know-how.
❓ Questions & Concerns
The margin appears very low for a SaaS business. Have to dig into that. What’s the customer acquisition strategy? What’s the CLTV? What’s the churn? Valuation seems elevated.
You can view the listing on AcquireBase.
🕸 Content/Service/Other
Window Cleaning & Pressure Washing - $390k
For sale is a 10-year-old window cleaning and pressure washing business located in Benton Country, WA. Not a business I would usually highlight but I’m seeing tons of demand (from buyers) for these types of home service businesses.
2,900 clients; Diverse mix of residential & commercial clients;
Home based business with no real estate;
TTM Revenue: $418k; Profit: $169k; Margin: 40%
Asking: $390k; Multiple: 2.31x
✅ What I Like
A lot of operating history. Good number of clients with some residential and commercial mixed in. Reasonable valuation.
❓ Questions & Concerns
Not clear if there are employees or not. I suspect you’re buying a job with this acquisition but I could be wrong. What’s the competition in this market?
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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