Listing ID: 78883
Available for acquisition is a mobile app designed to help users record phone calls worldwide. The app has over two years of history and is monetized with a subscription model.
The iOS version has generated a total of over 4 million downloads and $2,560,000 in net revenue. Average lifetime for iOS users is 2.7 months.
The Android version has generated over 3.9 million downloads and $425,000 in net revenue. Average lifetime for Android users is 5.9 billings on the weekly plan.
o Subscription revenue
o Monthly Downloads: 185,000
o MAU: 269,000
o DAU: 11,146
o Search requests for “call recorder”, “call recording app”, “phone recorder” and etc. have high popularity on the AppStore because iPhone doesnÕt have a call record option. Same for Google because since Android 8.5 version there is not a call record option. This leads users to find apps for recording.
o iOS and Android versions are both proven with active userbases.
o These apps have lots of trust from the AppStore and Google Play. With that the apps get strong organic installs (month by month) and continue to produce revenue even without paid user acquisition.
o More paid UA will help increase revenue and profit.
- Asking Price: $2,600,000
- Cash Flow: $742,190
- Gross Revenue: $1,256,169
- EBITDA: $742,190
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The company 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.
Owners are selling their current app assets to focus on the mental health space.
This Business Is Home Based
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. However, the real reason and the one they tell you might be 2 absolutely different things. For instance, they might state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or a range of other factors. This is why it is really vital that you not rely completely on a seller's word, however rather, use the vendor's solution in conjunction with your overall due diligence. This will repaint a more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover things such as stock, payroll, accounts payable, etc. Remember that sometimes this can mean that profit margins are too thin. Lots of 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 also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be satisfied or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in brand-new clients? Many times, businesses have repeat customers, which develop the core of their everyday earnings. Certain aspects such as brand-new competitors growing up around the location, road building, and personnel turnover can impact repeat clients and also negatively impact future revenues. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the opportunity to construct a returning client base. A final thought is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the local mean house income effect future earnings prospects?