The Business Inquirer #082
In this week's issue, I highlight eight listings including an Airbnb for farmland, an SMB accounting SaaS, an EdTech business, 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 - 0 listings
☁ SaaS - 3 listings
🕸 Content/Service/Other - 5 listings
🛠 Tools & Resources
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🛒 eCommerce
☁ SaaS
SMB AR Automation - $595k
For sale is a 3-year-old SaaS platform that helps SMBs automate their accounts receivable collection.
Serves the B2B SMB market; CLTV of $2k; 3-person team;
13k e-mail subs; 7k monthly website visitors; Focus on SEO;
Integrations with most popular accounting platforms;
TTM Revenue: $481k; Profit: $140k; Margin: 29%
Asking: $595k; Multiple: 4.25x
✅ What I Like
Some operating history. B2B SMB clients should be sticky. Focus on SEO and content provides a moat and lowers their CAC. Could be an interesting acquisition for an accounting or professional services firm. Valuation is reasonable if there’s growth.
❓ Questions & Concerns
At first glance, the $2k CLTV seems low. What type of client churn are they seeing? How is revenue growth trending and where is it coming from? The software is built in-house and requires a software dev on staff or retainer. Relying on SEO can be problematic with changing Google algos impacting the rankings.
You can view the listing on Website Closers.
————
Social Media Marketing - $250k
For sale is 1-year-old Social Studio which is a SaaS that is an AI assistant that helps clients grow their Instagram audience.
Monthly SaaS pricing from $40 to $50;
Target audience are influences and young companies;
12,500 e-mail subscribers; 13,300 TikTok followers;
TTM Revenue: $205k; Profit: $103k; Margin: 50%
Asking: $250k; Multiple: 2.43x
✅ What I Like
This SaaS is in a mature market where you don’t need to do as much to educate the consumer. Strong e-mail list that can be monetized. Nice margins. The developer can stay on with the new business owner. Solid foundation for someone to come in and scale the business.
❓ Questions & Concerns
Very young business in a crowded market. How are clients acquired and what’s the CAC? How much would it cost to expand the software to include other platforms? A lot of due diligence is required.
You can view the listing on SellerForce.
————
Customer Research - $75k
For sale is an 8-year-old SaaS that helps users conduct a certain type of customer research. Not a lot of detail in the listing.
23 clients; Adding 1 new client per month;
All day-to-day operations are outsourced;
Majority of website traffic comes from organic search;
TTM Revenue: $30k; Profit: $17k; Margin: 57%
Asking: $75k; Multiple: 4.41x
✅ What I Like
The business seems to be fully automated with all day-to-day being outsourced. Margins look solid. Focus on SEO brings down CAC. Could be an interesting project for someone to try and scale. Listed by Empire Flippers which typically has a more robust vetting process.
❓ Questions & Concerns
Not a lot of detail in the listing. Risky acquisition. High multiple. Why hasn’t there been more traction in 8-years?
You can view the listing on BizNexus.
🕸 Content/Service/Other
Airbnb of Farmland - TBD
For sale is a 1-year-old marketplace that is matching farmers with landowners. The goal is to alleviate the problem of land access for farmers, while simultaneously digitizing the huge and still analog farm rental market.
Competitors: Tillable, North Carolina Farm Link, Cashrent
I don’t have access to the financials
✅ What I Like
I think this is an interesting market and business model. Listing makes it seem like they are pioneers in this industry (not sure about that).
❓ Questions & Concerns
I requested access to financials but don’t have them yet. As a new startup trying to disrupt an analog market, it may take a lot more investment than planned. Simple Google search turned up a few more competitors that the listing didn’t mention. Not a business for a first-time acquirer.
You can view the listing on GetAcquired.
————
EdTech - $185k
For sale is a 2-year-old EdTech startup that helps high school students build an independent passion project to boost their odds of elite college admissions. Students are paired with mentors from elite universities such as Harvard, Yale, & Stanford who guide them through brainstorming, design, and execution of a passion project.
Competitors: Julie Kim Consulting
Mentoring packages range from $900 to $2,400;
Developed lead gen system; 5M social media reach;
Emerging B2B vertical;
TTM Revenue: $100k; Profit: $40k; Margin: 40%
Asking: $185k; Multiple: 4.63x
✅ What I Like
This business appears to be a leader in this evergreen niche. I like that there are systems in place for lead gen, sales, and onboarding. A lot of value in that. Large social media reach that they’re using to build out a B2B vertical.
❓ Questions & Concerns
I believe this is a one-time purchase with no recurring revenue. How does this compare to the competition? How are clients acquired? Are there additional ways to monetize their audience? Valuation is a bit elevated.
You can view the listing on MicroAcquire.
— — — —
Generator Business w/ Service Contracts - $100k;
For sale is an 11-year-old business in Broward Country, FL that is an established servicer of Generac generators. Seller installs and provides service contracts to their clients.
Over 114 service agreements renewed every year;
Can be relocated and operated remotely;
TTM Revenue: $245k; SDE: $93k; Margin: 38%
Asking: $100k; Multiple: 1.08x
✅ What I Like
A well-established business with a lot of operating history. Serves a good area with high-end clients and steady demand. Decent margin. The seller has been dropping the asking price by ~20% every 3-months so perhaps there’s a deal to be had.
❓ Questions & Concerns
What’s prevented the owner from scaling this further? You’re buying a job. Not clear if this work can be outsourced. Not enough revenue to put in an operator.
You can view the listing on BizNexus.
— — — —
Healthy Food Habits Newsletter - $56k
For sale is a 1-year-old weekly curated newsletter about healthy nutrition habits. This listing comes from a TBI reader.
16,629 subscribers; 54% open rate;
Huge community on social media;
Monetized with info products, subscriptions, and sponsorships;
30-Day Revenue: $785
You can view the listing on Duuce.
— — — —
Hubspot Partner Agency - TBD
A HubSpot Partner agency based in EMEA is looking for a Chairman to help drive the business forward or a potential partner to grow a co-op-style business. This is a partnership or equity stake opportunity.
SaaS that turned into an Agency;
20 clients; 75% repeat clients; 15% M/M growth;
30-Day Revenue: $25k; Profit: $5k; Margin: 20%
Asking: Open to Offers
You can view the listing on BitsForDigits.
🛠 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.