Field Notes: SaaS Sales Management Platform

Forget the Startup Seed Funding, Get an Usain Bolt-like Head Start in SaaS

Sales is not a dirty word. Check out this SaaS Platform for Sales Performance Management based in Tampa, FL:

Financial Performance and Valuation:

• Asking Price: $15,000,000. You’re looking at about a 6x on EBITDA of ~ $2.5 million. Looks pretty reasonable compared to other SaaS businesses of this size, though multiples can vary widely based on growth prospects.
• Gross Revenue: $5,794,000. This top line number, along with the cash flow is quite healthy for SaaS businesses. But here comes the good part: net margins of 35%, way higher than the average. Looks like there’s some pretty efficient management and operational leverage here.

Market and Product:

• An exceptionally low churn rate of only 2%. Remarkable for any SaaS business, and indicates product stickiness with a high lever of overall customer satisfaction.
• The Golden Metric for the SaaS thot bois (and girls): ARR (Annual Recurring Revenue) of $3 million. Stable. Predictable. What’s not to love here?
• The listing states a Customer Lifetime Value: $440,000. If accurate, this reflects exceptionally high profitability per customer.

Operational Strengths:

• The business has been around for 22 years. Plenty of time to build a long-term, stable presence in its niche.
• The presence of multiple Fortune 500 customers only sweetens the pot here, and an ARR growth rate of 33% means you’re not just buying a SaaS company, you’re buying a rocketship.

Strategy:

• The amazing ARR growth along with the juicy low marketing spend (1% of total revenue), gives the new owner plenty of room to optimize, optimize, optimize without the risk of doing substantial damage.
• Sales isn’t a dirty word, and the company’s focus on ‘sales performance management’ addresses a critical aspect for any business, with an epically large TAM to boot.
• The listing notes seller financing is available.
• I’m going to use the dreaded word: AI. Do some serious diligence and make sure this opportunity won’t be the first casualty where AI replaces a compelling SaaS product.

Wrap Up:

This is a pretty compelling listing. Frankly, I’m surprised it’s still available. Instead of worrying about getting seed funding for your great SaaS idea, why not round up some savvy investors and give yourself a sprinting head start? I’m talking like a Usain Bolt head start on your tech bro friends do seed and series A. One day you got nothing, and the next you’re sipping your latte at Starbucks and telling your friends, “Yo bro, I’ve got $3 million ARR.” All jokes aside, this long-term business with solid financial, low churn rates, low marketing costs, and a high customer LTV is something worthy of a closer look for any aspiring ETA.

About: Silverwave Field Notes combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed. The business highlighted above is represented by WebsiteClosers.com