Business Overview

For sale is an iOS app that helps users edit photos using unique filters, presets, background remove and photo retouching all in one app. The app was launched in January 2020 and has generated a total of over 2,350,000 downloads and $1,185,000 in net revenue. The app is available worldwide and uses a subscription monetization model.

Highlights & Key Assets:
o Unique functionality only available in this app compared to other preset apps: 1) applying any preset without Lightroom. Just select preset and apply (our own script). 2) automatic background changer, automatic animation creating from any photo. Just select effect and apply (our own script). 3) automatic photo retouching. Just select and press apply (our own script). 4) education course – Lightroom Mobile first steps. Unique lessons for beginners in LR (our own course).
o 15K reviews and 4.7 rating.
o Monthly Downloads: 97,000
o MAU: 125,000
o DAU: 4,500
o Average user lifetime is 3 months.
o This app has good trust from the AppStore and gets strong organic installs (month by month) so it will continue to produce revenue even without paid user acquisition.
o More paid UA will help increase revenue and profit.
o Specific growth potential – after iOS 14.5+ was released more than 80% of users were from Google UAC campaigns. The owners got good results from this channel, but had already paused it before using SkadNetwork. For FB, Value optimization may be the key performance feature, as they have good LTV for paid users.

Financial

  • Asking Price: $720,000
  • Cash Flow: $183,657
  • Gross Revenue: $851,761
  • EBITDA: $183,657
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

Home Based

Is Support & Training Included:

The company owner is willing to offer a training period and will work with a new owner to ensure a smooth transition. This is flexible depending on your needs. Their team will continue working with a new owner if desired.

Purpose For Selling:

Owners are selling their current apps to focus on the mental health space.

Home Based:

This Business Is Home Based

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell operating businesses. Nonetheless, the true factor vs the one they say to you might be 2 completely different things. As an example, they might say "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competitors, current decrease in revenues, or a range of other factors. This is why it is very crucial that you not count completely on a vendor's word, but rather, utilize the vendor's answer along with your total due diligence. This will repaint a more sensible picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover things such as stock, payroll, accounts payable, etc. Remember that occasionally this can suggest that earnings margins are too tight. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new clients? Often times, operating businesses have repeat customers, which develop the core of their daily revenues. Certain elements such as brand-new competition sprouting up around the area, road building and construction, as well as personnel turnover can affect repeat consumers as well as adversely influence future earnings. One essential thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the greater the chance to build a returning consumer base. A last thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Exactly how might the local average home income effect future earnings prospects?