Listing ID: 77552

Business Overview

This Technology SaaS company operates a virtual mail business address service across the United States. Their primary target audience are home based business owners who don’t want to use their residential address for their business mail. A secondary market consists of people for which a physical mail location doesn’t fit their lifestyle. These people include international travelers, military service members and people leading a nomadic lifestyle.

Within the United States, approximately 15 million home based business exist and 3 million new home based business are started each year. Each of these businesses is required to provide a physical mail address in order to incorporate and receive official mail from the state and federal government. The size and need of this market is enormous and largely untapped by any sizable player.

In addition to home based business, approximately 40 million Americans travel internationally each year, many for extended trips. Having access to USPS mail via mobile phones is a large and lucrative market. These international travelers include leisure travel, corporate executives working from abroad and military service members.

The ability to virtualize physical mail and handle it much like email is considered a high value service and has allowed the firm to attract almost 30,000 monthly subscribers in just a few short years.

Highlights of this business include:

Rapidly growing and profitable
Large total addressable market
Low customer revenue concentration
Strong reputation and very positive online reviews

Financial

  • Asking Price: N/A
  • Cash Flow: $1,744,403
  • Gross Revenue: $3,900,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell companies. Nevertheless, the true factor vs the one they tell you might be 2 totally different things. As an example, they might say "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a variety of various other factors. This is why it is really important that you not depend absolutely on a vendor's word, yet rather, make use of the vendor's response along with your overall due diligence. This will repaint a much more reasonable image of the business's current situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover points like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that revenue margins are too thin. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be satisfied or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract brand-new clients? Most times, operating businesses have repeat customers, which develop the core of their everyday earnings. Particular aspects such as brand-new competitors sprouting up around the location, road construction, and staff turnover can affect repeat consumers and adversely impact future revenues. One crucial point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the greater the possibility to develop a returning consumer base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the regional average home income effect future income prospects?