The Business Inquirer #159
Sharing a seaplane charter in FL, an irrigation business in CA, a newsletter in gold/commodities space, a niche marketing SaaS for property owners, LinkedIn outreach SaaS, and a boating/fishing ecom.
Hello Friends!
In this week’s issue:
🛒 eCommerce - 1 listing
☁️ SaaS - 2 listings
💼 Media - 1 listing
🏡 Main Street - 2 listings
⚒️ Tools & Resources
💡 How I Can Help
This issue of The Business Inquirer is sponsored by:
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🛒 eCommerce
Fishing/Boating E-Commerce - Open to Offers
☁️ SaaS
LinkedIn Automated Outreach - $2.4M
Launched in 2016
Revenue: $1.1M
Profit: $601k
Margin: 55%
Multiple: 3.9x
💬 Quick Take
This LinkedIn automated outreach platform presents an appealing investment for those looking to enter or expand within the B2B lead generation and SaaS sectors. Its strengths lie in a solid LTV/CAC ratio, innovative product offering, and stable revenue model with recurring monthly contracts. However, the reliance on a single platform (LinkedIn) and the competitive nature of this industry are potential risks. The business's recent expansions into new advertising products show promise for future growth. Valuation seems reasonable at first-glance.
✅ What I Like
High LTV/CAC Ratio
The 9.4:1 ratio indicates efficient customer acquisition and strong long-term value generation from each client.
Recurring Revenue Model
Monthly and annual contracts provide stable cash flow and reduce unpredictability in earnings.
Expansion Potential
Beta and soft-launched advertising products have shown promising results, indicating room for growth.
Profitable Operation
The business's profitability without needing external funding underscores a successful and efficient operational model.
❓ Concerns
Platform Dependence
Business reliance on LinkedIn is very risky. Changes to platform policies, API access, or pricing can have an immediate negative impact.
Market Competition
The highly competitive nature of lead generation and particularly LinkedIn automation markets requires constant innovation and differentiation.
Single Revenue Stream Risk
Despite the recurring revenue model, diversification beyond LinkedIn automation could mitigate platform-specific risks.
💼 Due Diligence Questions
Client Acquisition Costs: How have customer acquisition costs trended over the past 12 months?
Client Retention Rates: What are the average client retention rates, and how do they compare to industry standards?
Technology Stack: Can you provide a detailed overview of the technology stack and any proprietary technologies? How easy is it to maintain?
Competitive Landscape: How does the platform differentiate itself in the competitive B2B lead generation market?
Product Roadmap: What is the product development roadmap, and how does it align with market needs?
Legal and Compliance: Are there any pending legal issues or compliance challenges, particularly related to data privacy?
Customer Success Stories: Can you share success stories or case studies that demonstrate the platform's impact?
Team Composition: What is the current team structure, and how does it support the company's growth plans?
Expansion Strategies: What strategies are in place for market expansion and the introduction of new products?
🚀 Growth Levers
Market Expansion: Explore additional markets beyond LinkedIn for lead generation to diversify revenue streams.
Product Innovation: Continually update and expand the product suite to meet evolving customer needs and stay ahead of competition.
Strategic Partnerships: Form partnerships with complementary businesses to extend reach and enhance service offerings.
Customer Success Focus: Invest in customer success to enhance client retention and upsell opportunities.
Content Marketing: Leverage content marketing to establish thought leadership and attract new clients.
Data Analytics: Utilize advanced data analytics to refine targeting strategies and improve campaign effectiveness.
International Markets: Consider expanding into international markets to tap into new customer bases.
Community Building: Build a community around the platform to foster loyalty and enhance user engagement.
🙋🏻♂️ The Buyer
SaaS Experience: Brings a background in managing and growing SaaS businesses, with a strong grasp of the unique challenges and opportunities in this sector.
Technical Savvy: Understands the technological foundations of the product and can guide its development to meet future demands.
Marketing Expertise: Has experience in digital marketing and B2B lead generation, crucial for driving the platform's growth.
Leadership Skills: Demonstrates the ability to lead a team, fostering a culture of innovation and client focus.
__ __ __ __ __ __ __ __ ____ __ ____ __ __
Marketing SaaS for Property Owners - $475k
Launched in 2014
200 monthly subscribers; 600 e-mail list;
Revenue: $146k
Profit: $105k
Margin: 72%
Multiple: 4.52x
💬 Quick Take
This niche SaaS platform boasts a solid foundation for expansion, offering a completely automated marketing solution tailored for property owners. It has cultivated a dedicated B2B client base, benefiting from minimal client turnover. While its growth fueled by word-of-mouth recommendations speaks to its quality and client satisfaction, this approach also presents limitations. The absence of an active sales force and untapped market opportunities represent both challenges and avenues for growth, depending on the prospective buyer.
✅ What I Like
Solid Recurring Revenue
The business's model of monthly subscriptions from over 200 clients ensures stable and predictable cash flow, a highly desirable trait for any acquisition.
Loyal Customer Base
With an average membership lasting 6 years, the company demonstrates exceptional customer retention.
Highly Automated
The business requires minimal owner involvement (10 hours a week) and no additional employees, showcasing an efficient operation.
Scalable Platform
The software's customizability and potential for white-label rebranding offer multiple pathways for growth.
Untapped Email Database
With 600 subscribers not yet fully leveraged, there's a clear opportunity for expansion through direct marketing.
❓ Concerns
Untested in New Markets
While the business has thrived in its niche, expansion into new industries remains speculative.
Technical Scalability
Ensuring the platform can handle increased demand without sacrificing quality will be crucial.
Content Refreshment
Continuously updating and innovating the website content offering will be necessary to maintain client interest.
💼 Due Diligence Questions
Client Acquisition Costs: What are the current costs and strategies for acquiring new clients?
Churn Rate Analysis: Can detailed churn rate statistics be provided to understand customer retention better?
Platform Scalability: What technical assessments have been conducted to ensure the platform's scalability?
Market Analysis: Has a comprehensive market analysis been conducted to identify potential new industries for expansion?
Legal Compliance: Are there any ongoing or potential legal issues related to the software or content?
Technical Maintenance: What are the requirements and costs associated with maintaining the software platform?
Customer Feedback: Can access to customer satisfaction surveys or feedback be provided?
Sales Strategies: What sales strategies have been considered or attempted in the past?
Competitive Landscape: How does the company position itself against current and potential competitors?
🚀 Growth Levers
Expand Market Reach: Exploring new industries and market segments could uncover untapped demand.
Develop Sales Team: Establishing a dedicated sales force to proactively target potential clients.
Leverage Email Database: Utilizing the existing email database for targeted marketing campaigns.
Introduce Additional Services: Expanding the platform's offerings to include new features or services.
Partnership Opportunities: Seeking strategic partnerships with complementary businesses for cross-promotion.
Enhance SEO and Social Media: Investing in advanced SEO strategies and social media advertising to increase visibility.
Customer Referral Program: Implementing a referral program to incentivize current clients to bring in new business.
Content Innovation: Regularly updating the platform's content to stay ahead of market trends and client needs.
🙋🏻♂️ The Buyer
Marketing Savvy: An understanding of digital and print marketing strategies would be beneficial for driving growth.
Tech-Forward: Comfort with SaaS platforms and the ability to oversee technical development and maintenance.
Growth-Oriented: A vision for scaling the business, including exploring new markets and expanding service offerings.
Operational Efficiency: Skills in automating and streamlining operations to maintain the business's lean operational model.
Strategic Networker: The ability to leverage and expand the existing network of clients and industry contacts.
💼 Media
Daily Newsletter on Gold & Commodities - $130k
Launched in 2018
17k subscribers
Revenue: $162k
Profit: $113k
Margin: 70%
Multiple: 1.15x
💬 Quick Take
This newsletter business caught my eye because I think we’re going to see gold and commodities outperform equities over the next few years. I think this space will attract more eyeballs as prices increase. The newsletter’s streamlined process for content creation and diverse revenue streams—affiliates, sponsorships, and PR distribution—are particularly attractive. The ease of selling sponsorships and converting affiliate offers, especially with commodities prices at all-time highs, highlights its immediate revenue-generating potential. However, the reliance on volatile commodities prices and the limited focus on increasing sponsorship sales could pose risks. The business's established process and niche audience offer a solid foundation, but these opportunities come with challenges that necessitate careful consideration.
✅ What I Like
Diversified Revenue Streams
The business has successfully diversified its income through affiliate marketing, sponsorships, and PR distribution, mitigating risks associated with reliance on a single source.
Efficient Content Creation
The process is streamlined, taking less than 30 minutes daily to create valuable content, demonstrating operational efficiency and scalability.
Niche Market Focus
Targeting gold and commodities investors is a strategic choice, especially with market prices peaking, ensuring high engagement and sponsorship interest.
High-Value Audience
The readership primarily comprises older, high-net-worth individuals, presenting lucrative opportunities for advertisers and affiliates.
Low Operational Overhead
The simplicity of the operational model ensures low costs and potential for high profit margins.
Growth Potential
There's ample room for growth through increased subscription efforts, improved sales focus, and potential expansion into related niches.
Established Subscriber Base
A dedicated reader base provides a solid foundation for further development and monetization strategies.
❓ Concerns
Market Volatility
Revenue streams may be heavily influenced by the volatile nature of commodity prices, impacting stability.
Underutilized Sales Channels
Current underemphasis on sponsorship sales could indicate untapped revenue potential or operational challenges.
Content Creation Dependency
The business's value heavily relies on consistent, high-quality content creation, necessitating continued expertise and insight.
Limited Brand Diversification
Focused primarily on a single niche, making it susceptible to market-specific downturns.
💼 Due Diligence Questions
Subscriber Metrics: What are the growth trends in subscriber numbers, and what retention rates are you seeing? How do you measure subscriber engagement, and what are the current metrics indicating about the audience's interaction with the content?
Content Strategy: How do you ensure the content remains relevant and engaging to your high-net-worth audience?
Competitor Analysis: How does this newsletter stand out from competitors in the same niche?
Advertiser Relationships: Can you detail the terms and longevity of your key advertising partnerships? What are the sponsorship renewal rates? How steady is that income source?
Operational Workflows: What specific tools and processes are in place to maintain the 30-minute daily content creation timeline?
Legal Compliance: Are there any ongoing or potential legal issues related to content or affiliate partnerships?
Market Analysis: How does the newsletter adapt to fluctuations in the commodities market?
Future Plans: What strategic initiatives are planned for future growth, particularly in subscriber acquisition and retention?
Open Rates and CTR: What are the average open rates and click-through rates (CTR) for the newsletter and dedicated emails? How do these metrics compare to industry standards?
Seller Motivations: Why is the business being sold, and what challenges or opportunities does the seller foresee?
🚀 Growth Levers
Enhanced Marketing Strategies: Invest in targeted digital marketing campaigns to attract more high-net-worth subscribers.
Broaden Sponsorship Deals: Actively seek and secure more lucrative sponsorship agreements with relevant financial and commodities firms.
Expand Content Offerings: Introduce new content formats, such as podcasts or webinars, to engage the audience further and open new revenue streams.
Leverage SEO: Optimize content for search engines to increase organic reach and attract a broader audience.
Subscriber Engagement: Implement strategies to increase subscriber engagement, such as interactive content or subscriber-exclusive events.
Strategic Partnerships: Form partnerships with complementary businesses or platforms to cross-promote content and services.
Expand Into New Markets: Explore opportunities to replicate the newsletter model in other high-interest niches like oil & gas or carbon credits.
Data Analytics: Utilize data analytics to understand reader preferences better and tailor content and advertisements accordingly.
Acquire Complementary Newsletters: Seek opportunities to purchase other newsletters within the same or a complementary niche to rapidly expand the reader base and diversify content offerings.
🙋🏻♂️ The Buyer
Experienced in Digital Marketing: A buyer with a strong background in SEO, social media, and email marketing could significantly expand the newsletter's reach.
Interest in Finance and Commodities: Knowledge in the commodities market will be crucial for creating engaging content and understanding the audience.
Operational Efficiency: An ability to maintain or improve the streamlined content creation process while exploring opportunities for automation.
Networking Capabilities: Strong connections within the financial and commodities sectors could open doors to new sponsorship and content opportunities.
🏡 Main Street
Irrigation Installation, Repair, Landscaping in Los Angeles - $3.5M
Launched in 2019
7 employees; high-end clients;
Revenue: $2.9M
Profit: $1.1M
Margin: 38%
Multiple: 3.2x
💬 Quick Take
Aerations Plus LLC offers a comprehensive suite of services and a strong client base. Its profitable business model, highlighted by substantial cash flow and steady gross revenue, is particularly appealing. However, the competitive landscape and the need for specialized services could pose challenges. The company’s focus on high-value residential clients and its capacity for year-round profitability are promising signs for potential buyers. The limited operating history does warrant increased diligence.
✅ What I Like
Broad Service Offering
The company provides a wide range of services from lawn irrigation to soil amendments, appealing to a broad customer base seeking comprehensive lawn care solutions.
Specialized Services
The focus on specialized services, such as water-wise programs, sets the business apart from competitors and caters to the growing demand for environmentally conscious landscaping solutions.
Year-Round Profitability
The business's profitability throughout the year, especially during the prime summer months, highlights its robust operational model.
High-Value Demographic
Catering to middle/upper-middle and wealthy clients ensures a reliable revenue stream from customers willing to invest in quality landscaping services.
Prime Location
Situated in Southern California, the company benefits from a strong residential market and a climate conducive to year-round landscaping services.
❓ Concerns
Limited Operating History
Given its launch in 2019, Aerations Plus LLC has a relatively short track record, which may raise questions about its long-term sustainability and ability to weather market downturns.
Competitive Landscape
The presence of several competitors in the market could pressure pricing and market share, requiring continuous innovation and marketing efforts.
Specialization Barrier
The specialized nature of services may limit the potential customer base and require constant upskilling to keep up with new landscaping techniques and technologies.
Market Dependence
Heavy reliance on the residential market could be risky if there's a downturn in the housing market or changes in consumer spending behavior.
High-Value Client Concentration
Dependence on a narrow demographic could be a vulnerability if there’s a shift in the economic status or preferences of this group.
Regulatory Risks
Landscaping and irrigation businesses face environmental and water usage regulations, which could change and impact operations.
Technical Complexity
The range of services offered requires technical expertise, making staff training and retention critical for maintaining service quality.
💼 Due Diligence Questions
Customer Retention Rates: What are the annual retention rates, and what efforts are made to retain high-value clients?
Vendor Relationships: Are there long-term agreements with suppliers or subcontractors that will continue post-acquisition?
Employee Skills and Retention: What training programs are in place, and what is the average tenure of key employees?
Regulatory Compliance: Is the business compliant with all current environmental and business operation regulations?
Market Analysis: Can we have a detailed breakdown of the competitive landscape and market positioning?
Technology Utilization: How is technology used in operations, customer management, and marketing efforts?
Client Acquisition Strategy: What marketing strategies have been most effective in attracting new clients?
Operational Challenges: What are the biggest operational challenges faced by the business currently?
Future Contracts and Projects: Are there any ongoing or upcoming projects that will carry over post-sale?
🚀 Growth Levers
Expand Service Area: Exploring neighboring regions could capture new markets and reduce dependency on the current demographic.
Enhance Digital Presence: Investing in a stronger online marketing strategy, including SEO and social media, can attract a younger demographic.
New Service Offerings: Introducing eco-friendly and technologically advanced services could appeal to a broader market and differentiate from competitors.
Strategic Partnerships: Collaborating with real estate firms and property managers could lead to steady contractual work and new client acquisition.
Customer Loyalty Programs: Implementing loyalty and referral programs can enhance customer retention and attract new business through word-of-mouth.
Operational Efficiency: Adopting new technologies for scheduling, job management, and customer communication can improve operational efficiency and customer satisfaction.
Community Engagement: Participating in community and environmental initiatives can boost brand visibility and appeal to eco-conscious consumers.
Staff Training Programs: Continuous upskilling of staff in new technologies and customer service practices can enhance service quality and efficiency.
🙋🏻♂️ The Buyer
Management Experience: Experience in managing a team and operations is crucial, given the business's scale and service diversity.
Environmental Awareness: An understanding of eco-friendly practices and regulations in landscaping will be beneficial.
Customer Service Orientation: Given the high-value client base, a strong focus on maintaining and enhancing customer satisfaction is essential.
Technical Acumen: Familiarity with the technical aspects of irrigation and landscaping services will help in maintaining service quality.
Marketing Skills: Skills in digital marketing and brand management will be advantageous in expanding the company’s market presence and attracting new demographics.
Networking Ability: The ability to network within the industry and with related businesses can open new avenues for growth and collaboration.
__ __ __ __ __ __ __ __ ____ __ ____ __ __
Florida Seaplane Tour, Training & Charter Company - $2.6M
This listing was shared in a private WhatsApp group that I am part of.
Launched in 2010
HQ in Orlando
FSBO (not a broker); 5 planes; $1.6M in assets;
Revenue: $850k
Profit: $350k
Below is the commentary from the person who shared the listing after speaking to the seller/business owner:
FSBO (no broker), I spoke with seller a few times. Below are some notes and all non-confidential info I received - he said I could share with our group and intro him to anyone interested. I would not quite call this a turnaround, but I do think the buyer has to have a strategic background, network, or synergy - hard for a general searcher.
He owns 5 planes and has a long term lease with the city in Orlando area. Does flight school and tourist charters (discovery flights, bar hops, etc). He commutes from Tampa and feels the biz needs someone onsite and he wants to focus on other projects in Tampa.
Hands-off/as-is:
~$850,000 Revenue
~$350,000 Net
~$1,600,000 Assets
Conservative first 12-mo forecast w/ someone running the day-to-day operations, utilizing all aircraft to their highest potential, pushing the team to hit goals, expanding marketing, attending local events, etc.:
~$1,100,000 Revenue
~$550,000 Net minus owner/GM salary
💼 Due Diligence Questions
Operational Metrics: What are the utilization rates of the aircraft and the productivity levels of pilots and staff?
Customer Satisfaction: Are there any metrics or feedback mechanisms in place to gauge customer satisfaction and loyalty?
Maintenance Records: Can detailed maintenance records and schedules for the aircraft fleet be provided?
Asset Valuation: How are the assets, particularly the aircraft, valued and depreciated?
Market Analysis: What market research supports the business’s services and pricing strategy?
Employee Turnover: What is the turnover rate among pilots and staff, and what measures are in place for retention?
Growth Metrics: What historical growth metrics are available, and how do they align with the industry average?
Partnership Structure: If considering a partnership, what structure and terms does the current owner envision?
🚀 Growth Levers
Digital Marketing: Leveraging social media and online marketing to reach a broader audience.
Partnerships with Travel Agencies: Establishing partnerships can increase bookings through tourism channels.
Expansion of Services: Offering new and unique tour packages or training programs can attract new customers.
Fleet Modernization: Upgrading or expanding the fleet can improve efficiency and customer experience.
Membership/Subscription Models: Introducing membership models for frequent flyers could ensure steady revenue.
Operational Efficiency: Streamlining operations and maintenance processes to reduce costs and improve service quality.
Customer Loyalty Programs: Implementing loyalty programs to encourage repeat business.
🙋🏻♂️ The Buyer
Operational Involvement: Ideal for someone willing to be actively involved in day-to-day operations, offering a hands-on approach to management.
Aviation Passion: A strong interest in aviation is beneficial, not only for operational understanding but also to share in the company’s culture and vision.
Growth Mindset: With the foundations for growth in place, a buyer with a vision for expansion and the ability to implement strategic growth initiatives would be ideal.
How did you like this issue of the newsletter?
⚒️Tools & Resources
I want to share some tools & resources that I have found helpful. Please note that some of these are paid sponsors of the newsletter.
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BizNexus - Marketplace + off-market origination in one platform. The marketplace averages about 10k active listings & pre-CIM opportunities, and the off-market origination focuses on data & multi-channel.
Search Fund Coalition - community for the Entrepreneurship Through Acquisition ecosystem. Monthly events and meetups for acquisition entrepreneurs.
Deal Sourcing Guide - a comprehensive list of business marketplaces, brokers, deal origination firms, and more.
💡 How I Can Help
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