2024.10.14 - Online Biz Acquisition Opps

Hey hey peeps and happy Monday afternoon.

Personally speaking its now been nearly 2 months since I acquired the accounting CPE business and I have only made small improvements which I am waiting to finalize. Largely the still waiting for it to pass Google’s ‘Core Web Vitals’ analysis, which I am expecting to happen any day now. That’ll mean we have solid performance to work on more aggressive content marketing (seo). And now being at my home office Florida I can work on other aggressive growth plans, such as hiring instructors and publishing more courses.

Overall I am very happy with the acquisition. I am comfortably in the drivers seat, the numbers have remained stabled, and there have been no surprises.

This week we have 3 good businesses and a small ‘interesting find’ at the bottom of the email.

// 12-Year-Old B2B SaaS | 5.0x Multiple

// User Experience Testing SaaS | 4.2x Multiple

// 11-Year Business-Focused Podcast | 3.5x Multiple

🔫 Gun to my head question:

If I had to write a check for one of the businesses in this email, with no other details which one would it be?

This is a tough one. I like the podcast making nearly 2 million a year. It seems to have serious brand authority and but the business looks almost ‘too good’. Why sell?

I also really like the 14 year old user experience testing SaaS tool at a 4.2x multiple and the integration with ChatGPT suggesting it is up to date and current.

The Applicant tracking system at 5x isn’t bad, but I think valued a little on the high side for a small SaaS.

I’d go with the podcast. It has a solid brand, the valuation multiple is quite reasonable and the ‘business’ niche is highly monetable and one that I like.

// 12-Year-Old B2B SaaS | 5.0x Multiple

💰 Asking Price: $470,000
📊 Gross Revenue: $95,028
💼 Cash Flow: $85,493
📅 Established: 2012

Overview:
This long-established B2B SaaS business offers an applicant tracking system (ATS) with minimal workload requirements and consistent revenue. Operating for 12 years without active marketing, the business serves over 200 clients, primarily small businesses, and maintains an impressive 57-month average customer lifetime. The business’s low price point and high customer retention make it resilient in challenging economic conditions. With a straightforward tech stack and low monthly support needs (1-2 hours), it’s well-suited for buyers seeking predictable revenue and growth potential.

Highlights:

• Predictable Revenue: Consistent revenue without active marketing, supported by 200+ loyal clients.

• Minimal Workload: Requires only 1-2 hours of monthly support, largely hands-off.

• Strong Customer Retention: 57-month average customer lifetime with a $2,800 LTV.

• Growth Potential: Opportunities exist to target SMBs through marketing, partnerships, and pricing tiers.

Questions:

❓ What are the current client acquisition methods, if any, and potential for expanding through targeted marketing?
❓ Could introducing pricing tiers or packages further boost customer lifetime value?
❓ Are there partnership or affiliate opportunities, particularly with franchise groups or SMB networks?

View Listing

// User Experience Testing SaaS | 4.2x Multiple

💰 Asking Price: $800,000
📊 Gross Revenue: $417,000
💼 Cash Flow: $192,000
📅 Established: January 2010

Overview:
This 14-year-old SaaS business provides a user experience testing tool delivering both qualitative and quantitative insights. Operating in the marketing software space, which can be prone to churn, this SaaS has stayed relevant with recent ChatGPT integration, a positive indicator of ongoing updates. It offers a subscription model with a 14-day free trial and has three pricing tiers. As the marketing software field is competitive and affected by shifting trends, evaluating its current competitive positioning is essential.

Highlights:

• Established Market Presence: 14 years in operation with a steady customer base.

• Recent ChatGPT Integration: Indicates the product is being actively updated to stay competitive.

• Growth Channels: Primarily reliant on inbound marketing and referrals, with expansion potential in digital marketing and B2B sales.

Questions:

❓ How does the tool compare to competitors like UserTesting and UserZoom in terms of feature set and user retention?
❓ What are the current user engagement metrics, and how sticky is the product compared to other marketing SaaS tools?
❓ Are there any plans or initiatives to further enhance the tool, such as additional AI integrations or advanced analytics?

View Listing: 

// 11-Year Business-Focused Podcast | 3.5x Multiple

I am 99% sure this is the EoFire podcast.
💰 Asking Price: $6,500,000
📊 Gross Revenue: $1,996,365
💼 Cash Flow: $1,918,999
📅 Established: 2013

Overview:
This established, business-focused podcast has built a loyal global audience with over 3,500 episodes and 145 million listens. Known for its daily shows featuring top entrepreneurs, the podcast brings in significant revenue through sponsorships, guest appearance fees, and affiliate income. With a lean team and high-profit margins of 80-90%, the podcast’s success has been entirely organic, leaving room for expansion via paid advertising, affiliate partnerships, and digital products. Outsourcing the hosting role could be feasible for scaling, though costs should be considered.

Highlights:

• Loyal Audience: 145 million+ listens and 400 monthly guest inquiries underscore its influence.

• Multiple Revenue Streams: Revenue includes sponsorships, guest fees, and affiliate sales.

• Efficient Operations: Operates with a small team, achieving profit margins of up to 90%.

• Growth Potential: Opportunities to increase monetization through ads, a community membership, and digital products.

Questions:

❓ How much would outsourcing the host role cost, and how would it affect listener engagement?
❓ What potential exists for affiliate monetization in areas like business services or digital products?
❓ Are there expansion plans to capitalize on additional content streams, such as courses or memberships?

View Listing

Interesting Finds:

Slide Deck Research Platform (startup)

This one is too young and too small to be an acquisition target, but it in 6 months it has made 33k in profit as a start. It could be good for those ‘growth marketer’ types. View Listing