Listing Number: 41041-873880
Thank you for considering this business. We are representing an original SQL based CRM/POS that facilities $500M a year in transactions for very high-end clients. It has been a leader in its niche for the past 30 years. It is a membership-based management tool where the credit card convenience cost can be passed onto the customer. The owner is willing to stay on after the sale for a couple years and facilitate the forward integration. The business itself is profitable but the upside here is the value of the processing. The seller can set a comfortable expectation to move $200M through a new system at very high convenience rates along with the original platform that could be expanded on. Recurring revenue from ongoing support for the POS/CRM is $700k. The software is hosted onsite with the client to maintain data confidentiality but it could be moved to the cloud with the right team.
Ideal buyer: The ideal buyer would be strategically related to the POS/CRM market or the credit card processing market. Because charges are a required and repeating payments from their end user the license holder is not willing to absorb the cost of the processing meaning a charge of 3.5% could be passed to the end user. For the right buyer 0.5-1% could be harvested from those transactions representing $1M-$2M in annual fees.
Why hasn't the seller done this: They currently have a processing partner integrated into the platform for some users. That processor is doing about $50M in annual sales, from that they only net a referral of $17k. This gives them little motivation to press forward without a strategic partner. The $50M that is passing through their processing partner does not include any fees passed to the customer, only traditionally integrated fees. The seller has not offered the ability to pass convenience charges to members, though it is requested, because he felt it wasn't legally permitted. With newer rule updates it's been on his to-do list but he feels moving forward with a partner will be best.
In addition to the processing the seller sees huge value in the platform itself and has seen competitors spend millions trying to duplicate what he has.
Seller narrative: Historically he was the primary salesman for the business until he grew large enough to begin running the business with a sales team. Through Covid they were unable to maintain the sales team and he became the salesman again while also trying to balance his role as CEO. He would really like to get back to just being a salesman for the system. Additionally, the seller has recently had a significant medical setback which has left him partially handicapped. While still able to perform his role, it has him planning for possible eventualities. Seller is not opposed to having a conversation about carrying a note or earn out for the right buyer.
He is passionate about his business and has won industry awards. He knows he will be an important part of the transition and is excited to take on a renewed challenge in a customer facing role. He is ready to make a deal. He is confident in the path forward but lacks the man power and logistics to pull off this next move without your help.
Loan Narrative: The tax returns are accurate but this business's cashflow could not justify a meaningful loan to impact the expected value of the business. We expect a buyer to be well resourced and prepared to purchase the business on their own merits and banking relationships. 2021 taxes have not been filed yet so a bank will only have 2020 as the most recent year available, which was a loss.
Asking Price: We're not married to $4M but given the huge upside, the owners willingness to stay, and the flexible terms we feel $4M is a good place to begin the conversation. If a buyer would like to begin the conversation at a different price, go for it, no need to be shy. This was under an LOI for $6M in March 2020 that fell apart because the buyer could not complete the deal due to COVID. This is our first step back into the market since then. We realize COVID damaged some of the value and we are adjusting our expectations accordingly, but we also feel the business has stabilized and is ready for the next chapter of growth.
This business is relocatable.
(This doesn't fit the strictest definition of a SaaS business for sale but I'm adding this sentence for the search engines. This is a point of sale business or a customer resource management business for sale, it is hosted on site with the clients but there is an ongoing support revenue aspect.)
- Price: $ 4,000,000
- Down Payment: $4,000,000
- Sellers Discretionary Earnings: $ 50,000
- Total Sales: $ 859,000
- Location: Dallas County, Texas
- Inventory: $ 0
- FF&E: $ 0
- Employees: 5
- Year Established: 1985
- Reason for Selling: Retirement
- Category: Financial Related