2025.03.09 - Online Biz Acquisition Opps

Author

Corey Philip
March 04, 2025

Corey’s Quick Take: A well established SaaS business in an resilient niche. This one is a little larger than most of what I include in the newsletter but I think a great find for any private equity, search funder, or even individual buyer with access to capital outside of the SBA!

25-Year SaaS Business – $2M SDE – Asking $10.6M – 5.3x Multiple

Listing Type (?): Solid

A long-established custom SaaS provider specializing in case management and transportation management software for nonprofits, social services, and government agencies. The business generates 90% recurring revenue and has a 27% YOY growth rate with zero marketing spend— all 100+ clients come from referrals and long-term relationships.

✅ What I Like

  • Highly sticky product – Deeply integrated into clients’ workflows, making switching costly.

  • High recurring revenue – 90% of revenue from long-term subscription contracts.

  • Strong margins – 76% profit margin, with an average contract value of $25K.

  • No marketing spend – All growth has been organic and referral-based.

  • Experienced team – A 7-person team, including 4 developers, maintains operations.

⚠️ Risks / Challenges / Questions

  • Growth potential without marketing? – Is growth truly scalable if it’s reliant on referrals?

  • Client concentration? – How many clients make up the majority of revenue?

  • Tech modernization? – Has the platform kept up with UI/UX and security trends?

  • Competitive landscape? – No mention of direct competitors or how they compare.

📈 Ways to Grow

  • Launch a sales and marketing team – With no structured marketing, paid ads, outreach, and trade shows could unlock rapid expansion.

  • Optimize pricing model – Potential for tiered or usage-based pricing to increase ARPU.

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