Absentee SaaS Platform for Retailers
Business Description
We are honored to solicit interest in this 21-year-old absentee owned and operated, consistently highly profitable SaaS (software as a service) Company. They are a niche enterprise software / technology firm and is in the business of providing a portfolio of software products to specific industry verticals such as retail, logistics and telecom services and they are the SaaS platform for a $100B+ US retailer. Its core competencies include a unique understanding of these verticals, their business workflows and their automation. This turn-key business generates high profits and runs on automatic which allows its owner to spend only minimal amount of time overseeing its operations, due it its India-based support organization consisting of a software development, engagement management, featuring complete life cycle product support.
The seller is convinced that there is significant growth potential for the business and he favors a recapitalization (recap) scenario given a unique in flexion point between the industry and the state of tech adoption within the industry. Given this vector, the seller is willing to stay onboard, indefinitely, after closing, as an employee to help unlock this potential value of the company in concert with the buyer in a recap acquisition model where the seller would offer to sell a controlling interest in the company consisting of 50-60% of the company's stock, in return for a $4M-5M valuation which would be accompanied by an earn out structure, to be negotiated, that would be paid out to seller based on certain performance metrics to be achieved such as a doubling of the company's revenues and cash flow within two years after closing. The company’s recent introduction of two new products are expected to increase its revenues by at least $500,000, annually, which could also be subject to additional earn out performance provisions, post-closing. The seller would also be agreeable to selling 100% of the company upon an acceptable mutually negotiated multiple of revenues sales price. (This potential transaction is not eligible for SBA financing due to their deb service cushion ratio requirements.)
As is typical of smaller companies who differentiate themselves through years of innovation and outstanding service and support, its largest customers, are big retail stores, having over 1,000+ US-based locations, which have consistently rewarded this company with additional business over the years and they are now responsible for approximately 70% of the company's annual revenues. The company’s platform is instrumental in driving $1B in incremental revenues annually for its retail customers. These and other customers have committed to an enhancement of the platform to include other capabilities. In addition, there are products and projects in the pipeline that leverages next generation AI (artificial intelligence) technologies which would fetch up to $4M in additional revenue for the company with initially 25% and eventually 50% or more in incremental annual recurring revenues. Fortunately, their relationship with their customers has lasted more than a decade and continues to grow stronger and prosper.
Their platforms are offered as services on the cloud and serve a range of business functions to handle enterprise planning, execution and monitoring. This company has returned 50%+ of its revenues as cash flow over the past two years and has consistently generated over high Seller Discretionary Earnings (SDE) on revenues and features over 70% in recurring SaaS revenues across its long standing and loyal customer base.
No list price is provided as this company will be sold to the highest bidder as market value multiples for SaaS companies can vary widely based on a particular buyer and it’s particular fit for that buyer's specific purposes. Potential buyers, seeking additional details, should have liquid funds in the amount of at least $500,000.
The seller is convinced that there is significant growth potential for the business and he favors a recapitalization (recap) scenario given a unique in flexion point between the industry and the state of tech adoption within the industry. Given this vector, the seller is willing to stay onboard, indefinitely, after closing, as an employee to help unlock this potential value of the company in concert with the buyer in a recap acquisition model where the seller would offer to sell a controlling interest in the company consisting of 50-60% of the company's stock, in return for a $4M-5M valuation which would be accompanied by an earn out structure, to be negotiated, that would be paid out to seller based on certain performance metrics to be achieved such as a doubling of the company's revenues and cash flow within two years after closing. The company’s recent introduction of two new products are expected to increase its revenues by at least $500,000, annually, which could also be subject to additional earn out performance provisions, post-closing. The seller would also be agreeable to selling 100% of the company upon an acceptable mutually negotiated multiple of revenues sales price. (This potential transaction is not eligible for SBA financing due to their deb service cushion ratio requirements.)
As is typical of smaller companies who differentiate themselves through years of innovation and outstanding service and support, its largest customers, are big retail stores, having over 1,000+ US-based locations, which have consistently rewarded this company with additional business over the years and they are now responsible for approximately 70% of the company's annual revenues. The company’s platform is instrumental in driving $1B in incremental revenues annually for its retail customers. These and other customers have committed to an enhancement of the platform to include other capabilities. In addition, there are products and projects in the pipeline that leverages next generation AI (artificial intelligence) technologies which would fetch up to $4M in additional revenue for the company with initially 25% and eventually 50% or more in incremental annual recurring revenues. Fortunately, their relationship with their customers has lasted more than a decade and continues to grow stronger and prosper.
Their platforms are offered as services on the cloud and serve a range of business functions to handle enterprise planning, execution and monitoring. This company has returned 50%+ of its revenues as cash flow over the past two years and has consistently generated over high Seller Discretionary Earnings (SDE) on revenues and features over 70% in recurring SaaS revenues across its long standing and loyal customer base.
No list price is provided as this company will be sold to the highest bidder as market value multiples for SaaS companies can vary widely based on a particular buyer and it’s particular fit for that buyer's specific purposes. Potential buyers, seeking additional details, should have liquid funds in the amount of at least $500,000.
About the Business
- Years in Operation
- 22
- Number of Employees
- 6
- Facilities & Assets
- While the owner of this company occupies an office suite, this business could easily be run from the buyer’s facilities or it could be consolidated within the infrastructure of a strategic buyer.
- Market Outlook / Competition
- This company enjoys high customer retention, exceptionally strong recurring revenues, tenured employees, and it appears to be well positioned against its competitors within the business service functions space that handle planning, execution and monitoring of key business operations, for the foreseeable future. There are many competing firms providing software and solutions in business planning, operations, digital transformation and analytics but few of them are believed to support clients within this vertical focus, as well as this company does
- Opportunities for Growth
- We believe that considerable growth vectors and opportunities for innovation exist for this company under the right leadership. The addition of an inside sales component and increasing its marketing/advertising would likely provide significant revenue and cash flow growth in a relatively short period of time, if optimally applied. One of the biggest challenges to generating new sales for the company is the other side of the high client retention coin – sales cycles are long and aversion to change is high, which could be addressed thru a sales function.
Real Estate
- Owned or Leased
- Leased
About the Sale
- Transition Support
- The seller is willing to stay on as a paid consultant, indefinitely, if that kind of an arrangement suits the buyer. The seller is also willing to consider a partial sale of the business in a partnership, as a recapitalization opportunity, through a stock purchase option of less than 100% of the company’s shares.
- Financing Options
- Seller will consider offering seller financing.
Listing Info
- ID
- 2143878
- Listing Views
- 10618
Listing ID: 2143878 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.