The Business Inquirer #083
In this week's issue, I highlight three listings including a CPG brand, a resume optimization SaaS, and a security system retailer.
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Hello Friends!
A little lite this week as there weren’t as many interesting listings.
In this week’s issue:
🛒 eCommerce - 2 listings
☁ SaaS - 1 listing
🕸 Content/Service/Other - 0 listings
🛠 Tools & Resources
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🛒 eCommerce
CPG Brand of Household Products - $2M
For sale is a 5-year-old brand of trademarked and patented CPG products that solve household problems.
Featured on Shark Tank
Nine products; 3 SKUs make up 80% of sales;
20% of revenue is online and 80% is wholesale;
Storage and fulfillment are handled by 3PL
TTM Revenue: $1.4M; Profit: $595k; Margin: 43%
Asking: $2M; Multiple: 3.36x
✅ What I Like
Interesting business. Seeing a lot of recent growth from the Shark Tank placement. I like that there is a large wholesale component. Focus on growing their online FBA business.
❓ Questions & Concerns
There are a lot of moving parts here. 80% of the revenue comes from their original three products. That’s a lot of revenue concentration. This business saw a big boost from being featured on a Shark Tank episode. How big was that boost? What’s the half-life of this benefit? They just hired an Agency to scale their FBA business so those margins are going to be cut in half. Interesting listing but a risky acquisition.
You can view the listing on Website Closers.
— — — —
Home Security Systems - $7.2M
For sale is a 14-year-old ecommerce business that sells home security systems including cameras, alarms, and access control devices.
81% of sales are B2B to installers; 78% repeat order rate;
450 SKUs; $802 AOV; Logistics handled in-house;
Owner spends 4-8 hours/week; Operating team in place;
TTM Revenue: $10.5M; Profit: $1.7M; Margin: 16%
Asking: $7.2M; Multiple: 4.24x
✅ What I Like
There’s a lot to like here. The business is in an evergreen niche that’s seeing increasing demand. Majority of sales are B2B with sticky customers and a high repeat order rate. They have a marketing strategy and system in place that seems to work. Variety of sales channels including DTC and liquidation. Team in place that runs the business.
❓ Questions & Concerns
One of the main concerns is the low margin. Have to dig into that a bit. I’d also want to see how their sales and expenses have trended over time. Valuation could be OK if there business is seeing steady growth.
You can view the listing on Website Closers.
☁ SaaS
Resume Optimization - $750k
For sale is a 1.5-year-old resume optimization and job application tracking platform for job seekers.
Competitors: Jobscan, ResumeWorded
Priced in monthly & quarterly subscriptions
2% free to paid conversion rate; 3-6 month retention;
120-200 new paid clients per month
All clients acquired through SEO and WoM
TTM Revenue: $110k; Profit: $102k; Margin: 93%
Asking: $750k; Multiple: 7.35x
✅ What I Like
I like this evergreen niche. The business has grown in a low-unemployment market so I’d assume it would grow even faster if the unemployment rate goes up. Focus on SEO lowers the CAC. Good growth and margins. Opportunities with selling the solution as a white-label product.
❓ Questions & Concerns
Young business. There’s a lot of competition in this space. There’s no proven paid marketing strategy. Conversion rate could be higher. No long-term client retention so the CLTV is relatively low. Valuation is very aggresive.
You can view the listing on MicroAcquire.
🕸 Content/Service/Other
🛠 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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