Social media is a great way for friends to keep in contact in new and novel ways, but it’s also a great platform for businesses to interact with their customer base, strengthen their brand and reach new audiences. Many businesses want to take advantage of the social media landscape and its huge popularity, but do not know how. This company has provided a way for businesses to build their social media presence with an automated system making the process for clients effortless.
This SAAS business has a proprietary web application which allows clients to connect with their social media account for the purpose of automating marketing. As a subscription based model, it has recurring revenues with low overhead generating net profit margins of around 85%. This business can be operated by one owner handling marketing, business development, sales and operations along with one FT employee handling customer support. It can be run from a home based office, is easily relocatable and can be operated from any location with internet access.
The company had been experiencing explosive growth since inception with performance having far exceeded the original forecasts each year. In 2018 due to differences amongst the partners, they have re-directed their focus to outside projects. With their attention on other ventures, they have also essentially turned off all marketing resulting in a decline from its hay day. A new owner can readily bring the business back to its 2017 levels and beyond by reinstating the marketing campaigns.
The business is priced based on the current annualized cash flow for 2018. Sellers are open to all reasonable offers but are seeking all cash buyers and will not entertain funding contingent on SBA loan approval because of previous failures of buyers to get funding. Proof of funds will be required.
The company’s tremendous growth history, excellent margins, proprietary software, subscription based model in a huge social media industry which continues to grow in popularity and effectiveness as a marketing channel, makes this business an excellent acquisition.