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Marchtech / storebuilder similar to Wix / Squarespace -- $8M EBITDA

Atlanta, Fulton County, Georgia 30303, United States
Asking Price$45m
Revenue$20m
EBITDA$8m
Cash Flow$8m
Description
Low owner involvement - partial or full exit - strong pipeline *** IDEAL BUYERS *** 1. A portfolio owner or SAAS business that wants to add high volume lead gen capabilities to grow their current businesses and IP to grow its IP portfolio. 2. A marketing tech company that wants to augment its platform with additional capabilities. 3. A low margin business that wants to add a high margin division and/or an “old school” business that wants to add cutting-edge lead generation technologies and capabilities to differentiate themselves in the marketplace. 4. A passive investor who wishes a high return on capital while the original team grows the business. *** OVERVIEW *** This is a great opportunity to acquire a highly profitable martech (marketing tech) platform and product suite which has 2 main income streams: [a] It’s acting as an outsourced lead generation platform for established SAAS companies. [b] It’s also selling its tech to SMBs for a one-time fee and on an MRR model. On a case by case basis, the owner is willing to do a partial exit and continue growing the business. The 2 founders are not involved in the day to day, making this an almost hands-off business. *** WHY ARE THEY SELLING? *** The owner wishes to invest into more commercial real estate. *** OFFERS & PRICING *** The business offers a store builder [similar to Wix and SquareSpace] for free and then forwards the prospect to different SaaS businesses which then pays the business a commission. The business also charges the users for premium tools that it’s built to extend the functionality of the online store – these tools range from a one-time fee of $297 to $97 per month. TEAM The team includes: * 2 founders * Developers * Data Analyst * Multiple media buyers * Support staff *** COMPETITIVE ADVANTAGES *** 1. The company has strong converting campaigns that work with paid ads even at high volume ad spend [most campaigns tend to fall apart as the ad spend is increased] – they’re in the upper 1% of all advertisers based on ad spend and ROI. 2. Due to the large volume of trial users the business generates for its clients [the SAAS companies], it receives way higher than normal commission rates (almost 3 times that of the industry average). 3. The business is starting to build a network of influencers who have agreed to promote this on a shared revenue model. *** FINANCIALS *** 2024 sales = $20.6M 2024 profit = $8M 75% of the business is from the commission by the SAAS companies and 25% is from its own product sales (which are charged one-time and on a recurring basis). *** CLIENT ACQUISITION METHODS *** 1. Facebook ads 2. Influencer marketing 3. Strategic partners *** GROWTH OPPS *** 1. Ink agreement with additional SAAS companies who have already expressed interest in collaboration 2. Acquire a SAAS or ecomm company and leverage the lead generation capabilities to grow and then sell that asset 3. Expand the MRR by offering recurring offers vs. one-time offers [the biz is doing the former because it wants to keep the ROI window to 90 days or less: a new buyer can choose to expand the ROI window to 180 days which would then 2-3X the existing MRR) *** IP INCLUDED WITH THE SALE *** 1. Team 2. Source code for the store builder 3. Marketing campaigns and funnels 4. Email list with over 100K records with full customer data [so they can be upsold] 5. FB ad account [seasoned with millions of ad spend] 6. FB Biz Manager *** OWNER'S HOURS *** One weekly call with the team. *** WHY THIS BUSINESS? *** 1. Unlike many tech firms which are priced based on a multiple of sales, this one is priced based on a multiple of earnings. 2. The biz can easily be grown by a new owner by simply being more patient with the ROI window [the current owner is only willing to wait for 60 to 90 days] 3. The biz has lots of pent up demand from other SAAS companies wanting to have a similar arrangement - inking these deals can 2X the biz 4. The marketing team can be used to grow any bi
Business is
Relocatable
Number of EmployeesFull-Time: 8
Year Established
2022
Support & Training
6 months handoff
Financing Options
Up to 20% seller financing
Asking Price$45m