2025.03.05 - Online Biz Acquisition Opps

Author

Corey Philip
March 05, 2025

Corey’s Quick Take: At first look it seems like a solid, fairly valued business in a high value niche, but with 2 founders as seemingly doing everything in the business the business valuation multiple seems grossly high. Employing a developer, support person, and sales personnel is likely to whack this SDE down substantially.

💻 SaaS Business – $419K SDE – Asking $2.75M – 6.5x Multiple

Listing Type (?): Interesting Find

A fast-growing SaaS company that automates Minimum Advertised Price (MAP) enforcement across online marketplaces. The business has scaled quickly since launching in 2020, with 295% revenue growth over the past three years and an ARR of $752K. Currently, there are 77 paying customers with a low churn rate of 1.4%. The two co-founders run all sales and development themselves, with no mention of additional team members.

✅ What I Like

  • Strong Growth – 295% revenue increase over three years, with continued momentum.

  • Recurring Revenue – $752K ARR with a mix of monthly and annual subscriptions.

  • Low Churn – 1.4% churn rate suggests customer satisfaction.

  • No Customer Concentration Risk – Largest customer accounts for just 12% of revenue.

  • Price Advantage – Positioned 3x–5x cheaper than competitors.

⚠️ Risks / Challenges / Questions

  • Founder-Led Operations – Two co-founders are filling multiple roles; a buyer would likely need to hire a salesperson and a developer, which would impact profitability.

  • No Mention of Additional Team Members – Unclear if there are any employees beyond the founders.

  • Product Stickiness? – Unlike deeply integrated B2B SaaS, this tool may not have a high switching cost, making retention more fragile.

  • Valuation Concern – 6.5x multiple is on the higher side, especially given the need for additional hires.

📈 Ways to Grow

  • Build a Sales Team – Founders handle sales with no formal process; a structured sales operation could accelerate growth.

  • Develop Enterprise Plans – With pricing 3x–5x cheaper than competitors, there's room for higher-tier pricing models.

  • Partnerships & Integrations – Aligning with eCommerce agencies or integrating into platforms like Shopify or BigCommerce could drive adoption.

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