My friend has a SaaS company. She wants to sell it.

Do you want to buy it?

Cartoon showing ARR $1M and 70% profit margin of this SaaS for sale

The company makes a website add-on to help sellers boost their online sales. Half of their revenue comes from clients who use the product on their Shopify stores.

They have over $1,000,000 of ARR with a 70% profit margin.

Here’s some more information about her SaaS company for sale, plus how to contact her directly.

Product Information

The company’s primary product is a marketing and sales toolkit. The software is used by online stores, schools, and other SaaS businesses.

Finger pointing at website, with a rocket going BOOOST

She founded the company in 2016. They were first-to-market and are now tied as the category leader.

Customers

Today there are 5,000 paying customers. Each pay between $10 and $50 per month.

Employees and Team

Monthly expenses for developers, engineers, and support is between $15,000 and $20,000 per month.

The company pays its team as contractors. They are willing to stay onboard to continue development and maintenance.

Person walking out the door, plus checkmarks next to: Developers, Engineers, Support on the SaaS for sale team

The founder has low involvement and prefers to exit after sale.

Current Founder / CEO Responsibilities

  • Weekly: One team-wide video conference
  • Monthly: Spot check product roadmap
  • Monthly: Team member check-ins via Slack
  • Quarterly: OKR goal setting (last completed June 15, 2020)

The founder is confident that her exit will not be detrimental to a successful outcome. The team is aware of her intent to sell.

Sales

There are no sales members on the team.

Most new clients find the product organically. They receive 700-1000 new signups per month.
Five stars, 10+ app store listings, and #1 rank on Google

  • Hundreds of 5-star reviews
  • 10+ App Store listings
  • Page 1 rank on Google for relevant keywords

Marketing and CAC

She spends $2000 per month on marketing now. For the past few years, it was always under $500 per month and only on branded keyword searches.

Recently she has hired a part-time contractor to help with marketing (cost: $1200 per month fixed). She has increased her advertising budget to $800 per month (variable).

This budget is spent on Shopify ads, retargeting ads, and Google ads. Primarily it is still branded search terms, but now with some additional keywords.

Customer acquisition cost (CAC) is estimated at $2.70.

Churn

The churn is estimated at 7 to 9%.

This is a screenshot from Stripe. It represents about half of the customers. The other half are on Shopify.

Four line graphs showing New trials, Trial conversion rate, Revenue per subscriber, and Subscriber churn rate of this SaaS for sale

“This is Stripe, so it is only half the story. Likely similar on Shopify.” Maybe during due diligence she could use Chart Mogul to combine subscription data from multiple sources. (suggestion via ZAK)

Revenue and Growth

Currently $1,000,000+ of ARR with an approximate 70% profit margin as of July 1st, 2020.

First-year sales were approximately $125,000.

The best month ever was in 2018 with $154,000 in sales. That included the recognition of one-time revenue.

Peak MRR without one-time sales revenue was $111,000 in February 2019. Sales decreased later in 2019 but profitability increased dramatically.

In June 2020, MRR was $88,828.

2020 revenue has been growing. Every month, for the past four months. The founder attributes this recent growth to many new businesses and ecommerce companies being created in 2020.

Additional Assets

Premium domain. Estimate $250,000 value on the resale market.

Plus two dozen copyrights, trademarks, and a pending patent.

Four companion websites which help generate new leads are also included in the sale.

Four circles, inside each says: Open Source, Marketing Community, Blog 1, and Blog 2

These include:

  • Open source design system
  • Marketing community
  • Blog (1)
  • Blog (2)

Reasons for Selling

The founder recently launched two new ventures. She prefers product-market fit challenges over continued maintenance.

Her best alternative to a negotiated agreement is to further reduce her involvement in the day-to-day operations, perhaps by hiring her own COO. She would then extract dividends from the company in excess of $60,000 per month.

Price

Make offer.

drawing of a roadside sign that says SAAS COMPANY FOR SALE, and yellow bullet MAKE AN OFFER!

Strategic Opportunities

There are several strategic opportunities that the founder has identified for future growth. Please contact the seller (link below) if you are a strategic buyer.

Contact the Seller

Fill out this form to contact the seller and express your interest.

Conclusion

This is the end of the information sheet.

To request additional information, fill out this form to contact the seller.

This blog post was created by Nick Gray acting on behalf of the seller.

Switching to first-person now: I’m not receiving compensation for supporting these introductions or helping her with the sale. Just trying to help a friend out and protect her anonymity. I enjoy writing business blog posts like this and like my long list of IR firms (for when your company is bigger!).

My contact information is hello@nickgray.net or schedule a call, but please skip that and just fill out this form to contact the seller directly.

cartoon hand pressing a red button that says MAKE AN OFFER

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Or read about how I sold my company, Museum Hack, in an interesting way.

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