Listing ID: 78894
For sale is a set of three slow motion editor apps with 7+ years of history that are doing $80K+ MRR and growing. The current revenue and growth were driven by strong organic traffic as these apps own some keyword real estate. Owners are just now starting paid UA.
Highlights & Key Assets:
o Users and subscriptions are growing, thousands of active users
o Highly engaged audience (main app has DAU of 4.2K and MAU of 108K)
o High ratings (4.2+) with 64K+ ratings across the three apps
o 100K+ downloads a month (been doing that level of downloads for years)
o Consistent cashflow
o History – 7+ years of history
o Updated – everything updated and installed for all the latest tracking
o Infrastructure in place to scale it up
o Ramped it up from $5K/month to over $80K/month since June 2020 (added subscription and revamped the app)
o Current dev team will work with a new owner if desired
- Asking Price: $3,000,000
- Cash Flow: $832,023
- Gross Revenue: $891,966
- EBITDA: $832,023
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The owner is willing to offer a training period.
The owner has an unrelated startup that they want to put additional funding into
This Business Is Home Based
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell businesses. Nevertheless, the true reason vs the one they say to you may be 2 entirely different things. For instance, they may say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, current reduction in revenues, or a range of other reasons. This is why it is really essential that you not depend totally on a vendor's word, however instead, use the seller's answer in conjunction with your general due diligence. This will paint a much more realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses borrow money with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too thin. Many businesses come under 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 obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new consumers? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day revenues. Specific variables such as new competition growing up around the area, roadway building, as well as employee turnover can influence repeat consumers and adversely affect future incomes. One crucial thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the better the possibility to construct a returning client base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean household income influence future earnings prospects?