Business Overview

his is a mature software company that provides eCommerce software to medium-sized merchants to effectively sell their products online. The software is built using standard technologies and is licensed based on a SaaS model with a monthly recurring subscription.

The company also offers turnkey marketing services for some of its SaaS subscribers. Not only does the marketing service provide ongoing revenue, but it also ensures the customers are successful in generating online transactions through the eCommerce storefronts. The mature and highly functional software application plus the digital marketing services have combined to create a consistently profitable software company with a very stable (low churn) base of subscribers.

The company currently supports over 200 merchants and has been in business for more than a decade. Due to its long-term commitment to customer success, the firm has achieved a strong reputation within its sector. This reputation is evidenced by a reliable flow of inbound leads. The firm is currently spending very little on outbound sales and marketing activities.

The market for eCommerce software is over $7 billion and is expected to grow at over 16% per year through 2027. This firm has successfully positioned itself as a middle-market provider, which is a defensible portion of this quickly growing market. The company targets online retailers who have at least $3m in annual online sales.

It has been run as a lifestyle business with minimal investment in sales and marketing. Virtually all new customers come inbound via referral.

Highlights of this business include:

Subscription-based software company with recurring revenue
Very low customer churn
Favorable CAC to LTV ratio
Strong culture with loyal and dedicated employees
This is an opportunity to acquire a profitable software business from committed sellers


  • Asking Price: N/A
  • Cash Flow: $520,352
  • Gross Revenue: $2,862,914
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:21
  • Furniture, Fixtures and Equipment:N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell operating businesses. However, the real reason vs the one they say to you might be 2 entirely different things. For instance, they might state "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, current decrease in profits, or a range of other factors. This is why it is very crucial that you not count absolutely on a seller's word, however rather, make use of the vendor's solution combined with your total due diligence. This will paint a much more practical image of the business's current scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering points such as inventory, payroll, accounts payable, etc. Remember that in some cases this can indicate that profit margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area draw in brand-new customers? Often times, businesses have repeat customers, which develop the core of their everyday earnings. Particular aspects such as new competitors growing up around the location, road building, and also staff turn over can impact repeat consumers as well as negatively affect future revenues. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business regularly, the better the opportunity to develop a returning customer base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the regional average family earnings effect future earnings prospects?