Listing Number: 41041-449098
(*Quick commentary if you've seen this ad before; this deal was under contract during that period the business grew significantly and realized many of the cost savings being put into place. It fell out of contract due to the capex spent to develop the SaaS which reduced historical cashflows. The buyer's accountants felt it necessary to remove that cost from the balance sheet and place it on the P&L reducing advertised profitability. We disagreed and feel it is a justified nonrecurring capital expenditure investment.)
This is the business you've been looking for; you wanted a business with unlimited growth potential, a genuine seller ready to retire with no heir, a business with over 30 years of experience as an industry founder, a business that has leveled off due to a lack of active management just waiting to take off. This business is at that inflection point every buyer dreams of. The scale of this business model has been proven over and over with billion dollar giants like Momentive (formerly Survey Monkey which was just bought by Zendesk), Qualtircs, and hundreds between all ready to make this business a potential target for acquisition with the addition of a little modern management.
This company has been providing actionable full service customer and employee satisfaction survey's to Fortune 500 companies for over 30 years. In doing so, they have collected enormous amounts of valuable industry benchmarking data creating meaningful value for their clients. That data is then stored and compared to prior years making their customers very sticky. After all, what good is data without benchmarking?
Top line opportunities: The customers are large national and multinational accounts with tons of room to grow inside of their current customer base. There is a lot of low hanging fruit and with no outside sales people, the fruit is unpicked. Sales leads are put on an email marketing drip but no one is actively selling. Why hasn't the seller done this? Because hiring and training sales people would cut into the work life balance the owner has come to enjoy.
We think the valuation is justified by the steady history, clear opportunity, actionable immediate cost savings, and low key man requirement. The owner is willing to stay for a transition period but they are ready to retire and feel this company is meant for more and would like to see that achieved in their lifetime. Additionally there is an effort to value the enormous potential of their recently finished, but pre-revenue, SaaS program developed over the past 3 years at a cost of over $500k which makes their 30 years of data points accessible directly to lower market end users. This pre-revenue SaaS opportunity is valuable because; it meets an established need, has something proprietary, and is being led by a qualified team. We think there is some meat left on the bone regarding how lean the business is ran and if a buyer takes a deeper look they will see that the business is just idling at its current capacity.
The opportunities go deep and I'd really love to share more with you. Let's get an NDA on file and continue the conversation about the opportunities for improvement and why your investment group should consider this business for your portfolio.
- Price: $ 4,000,000
- Down Payment: $1,500,000
- Sellers Discretionary Earnings: $ 1,000,000
- Total Sales: $ 2,500,000
- Location: Collin County, Texas
- Inventory: $ 0
- FF&E: $ 0
- Reason for Selling: Retirement
- Category: Business Services