Aerial Media Visualization - 345k SDE - 5.6x Valuation

Listing Type (?): Solid (but overpriced)

This is a cool business. When I first read the headline I thought it would be doing drone videos, but it's better than that! They do create property videos or images using licensed media. If If you’ve looked at commercial or industrial real estate you've certainly seen this stuff in the packets.

While it may be a cool business, the 5.6x is not cool.

Aerial Media Visualization

SDE 345k

Rev 920k

The good…

• Fully remote with no physical assets/operations (they’re not sending drones around).

• Nice margins, 37.5%

• 29% repeat customer rate

• SBA eligible.

• This business is a low ticket relative to the value of the RE transaction. Customers of these services are less likely to pinch pennies when theyre working on a million dollar transaction value. In other words the cost of your service is immaterial to the customer. Businesses like this are nice to be in.

The cynical side…

• AI… how capable is AI to create the deliverable? Are there AI DIY tools out there already for it? I don’t think the business at risk of being made obsolete by AI (RE and Fin guys working on high value deals typically aren't going to muck around to save a few hundred dollars on a half baked AI product), but there could be some headwind if AI can do it well. The real win

• How has the revenue trend been the last 3 years since AI was released?

• 5.6x.... wtf are they smoking? No mention of anything proprietary. Just a digital service business in a nice niche. Assuming the revenue isn’t declining a 3-4x valuation here is fair.

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