2024.05.23 - Online Biz Acquisition Opps

Who's gonna turn this SaaS around?


Hey hey peeps, quite a few solid online businesses hit the market this week! I’ve got another 15 or so to look review open in my browser at the moment so expect another email in the next 48 hours or so!

For now though here are 3 interesting deals.

The SaaS one is interesting because well it’s SaaS.

I really like podcast connection business.

And the diaper business, is one of those deals that is small but well put together and but seems like a rocket of opportunity.

// SaaS Video Messaging and Testimonials for SMBs

  • 💰 Asking Price: Accepting Offers

  • 💼 Cash Flow: $193,745

  • 📊 Gross Revenue: $795,489

  • 📅 Established: 2017

Overview: This B2B SaaS company specializes in video messaging and testimonials for SMBs.

Why It’s Interesting:

Huge Market Potential: The review-building SaaS market is expansive and continually growing.

Impressive Metrics: It boasts $61K MRR from 1,400 customers, an ARPU of $44, and an LTV of $1,100.

Low Valuation Opportunity: The business is in decline, which may present an opportunity for a low valuation that can be turned around for easy wins and significant equity boost.

Key Concerns:

Economic Sensitivity: It’s plausible they serve a niche market impacted by macroeconomic factors, like real estate, where high interest rates have slowed sales.

Marketing Mystery: The teaser doesn't elaborate on their marketing efforts. It’s essential to dig into what strategies they've used and what hasn't worked.

Expense Ratio: The expenses are high at 76%, leading to a relatively low 24% margin. Typically, declining SaaS businesses slash expenses to maximize profitability, but this one hasn’t, which raises questions.

Growth Strategy: If you’re considering an offer, a robust plan for growth is crucial. Without it, the business's challenges may overshadow its potential.

Bottom Line:

This SaaS business offers a solid foundation and significant market potential but requires strategic direction to overcome its current hurdles. A detailed understanding of its marketing efforts and a clear growth strategy will be vital for any prospective buyer.

// Podcast Host/Guest Connection Platform w Recurring Membership Revenue

💰 Asking Price: $380,000
💼 Cash Flow: $114,936
📊 Gross Revenue: $133,676
📅 Established: 2020

This digital service business is a gem with no inventory to manage and a robust community. Launched in August 2020, it connects podcast hosts and guests through a paid membership model. With 650 active paying members, the monthly recurring revenue stands at approximately $9,700, translating to a low ticket price of about $14/month. This low price point typically results in easy customer acquisition as it’s a no-brainer for many.

The business has a large, engaged audience, with a 20K email list and a 62K-member Facebook group. Despite having no background in marketing, the owner has managed to create a thriving community with no paid marketing and limited affiliate partnerships.

Growth opportunities abound: launching podcast-related courses, offering podcast audits, repurposing content strategies, guest-booking services, group coaching, and raising prices. With the right marketing strategy, this business could see significant growth.

However, I'd be keen to understand the churn rate on customers to better assess the long-term stability. The owner is looking to step back to spend more time with her family but is open to staying involved in a limited capacity, which could ease the transition for the new owner.

// Cloth Diaper Subscription At 1.9x Multiple

  • 💰 Asking price $69,000

  • 📊 Revenue est: $54,000

  • 💼 Cashflow: $36,000

  • 📅 Established 2020

That 1.9x is smiling at me lol.

Interestingly the listing gives us the name of the business as ‘Bungies Cloth Diaper's’, but further details are limited only to subscribers of Flippa.

The margins and the multiple certainly look good. The site looks great. The product sells on subscription. The business has a good bit of branded search volume; which I love as it indicates there is a branded audience. Legit good reviews on Facebook

What are we missing here? This looks great for a small acquisition!

It would be crucial to understand what the seller has done for marketing. Considering the high margin of 75$% I’m inclined to believe the seller isn’t a ‘marketer’ and hasn’t done much to pursue growth through advertising. That would be GREAT as usually when ecom businesses struggle to find a product-market fit we see low margins as the seller dumps tons of money into marketing for meager pennies.

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